Increasingly, Americans in search of retirement in a place where they can stretch their (likely meager) retirement savings are looking beyond U.S. borders.
That's according to an Associated Press report, which found that between 2010 and 2015, the number of Americans who retired abroad increased 17 percent—with even more retirees following their lead over the next 10 years as boomers leave the workplace.
The Social Security Administration puts the number of American seniors living abroad at just under 400,000, with the most popular destinations being Canada, Japan, Mexico, Germany and the U.K.
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Why? In a word, money.
Olivia S. Mitchell, director of the Pension Research Council at the University of Pennsylvania's Wharton School, was cited in the report saying that the cost of living is the reason most retirees cite for moving out of the country.
She was quoted in the report saying, "I think that many people retire when they are in good health and they are interested in stretching their dollars and seeing the world." And they can do that elsewhere, since, as Mitchell pointed out, in some countries retirees could pay less to hire someone to clean, cook, do laundry and even provide long-term care than in the U.S.
Health care can be an issue, since Medicare is not an option for Americans living abroad—but considering the challenges faced by the senior health benefit here in the U.S. under a new administration, that may be a major factor in future retirees' decisions to relocate.
In fact, Japan, which has a large U.S. military presence, has seen the biggest uptick in American retirees coming in—42 percent.
Former military language and intelligence specialist Joseph Roginski, who was stationed in Japan in 1968, was quoted in the article saying that he pays $350 annually to be covered by Japan's national health insurance, with the policy covering 70 percent of his costs. The rest is taken care of by a secondary insurance program for retired military personnel.
Roginski said in the report that he would never move back to the U.S.
The same was said by Kay McCowen, who moved to Mexico after being widowed and has found a community of other expatriats—including many widows and divorcees. She was quoted saying, "There is comfort in numbers."
But, in addition to the climate, the beauty of the region (Lake Chapala) and the fact that she can live on her Social Security check, another factor McCowen cited as important was being independent in a thriving community. The article quoted her saying, "I see older people walking year round. I see them all over the place even in their wheelchairs. If they were in the U.S., they would probably be in a nursing home. I don't think I could move back."
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