The global picture

In many parts of the world, people are living longer, often spending 20 to 30 years in retirement, which is straining pension systems. At the same time, rising living costs and the fact that it is generally easier to move from one country to another are changing what people think about where and how they retire. What was once a fixed life stage in one place is now becoming more flexible.

A report by Canadian insurance giant Manulife (The 40-year retirement — balancing dreams and dollars) captures a growing anxiety among employees. According to this 2025 survey of more than 2,000 workers and retirees, 42% of those currently employed said they are worried about being able to pay for basic expenses in retirement, 43% said they are worried about healthcare costs in retirement, while 48% admitted their retirement savings are behind schedule.

These concerns cut across generations. While Gen X are focused on fast-approaching retirement dates, millennials and Gen Z are also preoccupied with some doubting they will ever be able to stop working. Some expect to stay in the workforce unless a major health issue forces them out. For younger generations, rising costs, among other factors, make retirement seem unattainable, regardless of how much they save.

There are broader economic pressures behind these anxieties. In some countries, wages have not kept pace with inflation, housing costs continue to rise, and traditional pension plans, once funded by companies, are shifting more responsibility onto individuals.

Faced with these challenges, a growing number of people are realizing that retirement abroad can offer the comfortable and secure future they no longer believe is possible in their home country. 

Some governments are also becoming more proactive in attracting retirees, recognizing the benefits they bring, such as stable, long-term incomes and local spending.

According to the 2026 Global Rescue Traveler Sentiment and Safety Survey, one in three travelers is considering retiring abroad. This is part of a broader trend highlighted in the 2026 Global Retirement Report, which reveals that 61% of residency programs analyzed maintain low income requirements. 

The figures suggest that moving overseas at the end of your working life is no longer the preserve of the wealthy, but is now available to the average person. It is making relocation a practical and viable option, regardless of the reason.

Making your money go further

People often start to turn their attention to retirement in other countries when the numbers do not add up at home. Moving to a country with a lower cost of living means your money can go further and your savings can grow in value. What might be a tight budget in a major city like Madrid or London can often fund a comfortable lifestyle in parts of Southeast Asia, Central America or southern Europe.

For example, according to the crowdsourced cost-of-living platform Numbeo, the estimated monthly living costs (excluding rent) for a person living in London are £1,102.4 (approximately $1,375 USD) as of May 2026. Meanwhile, the monthly living costs for a single person in Bangkok, Thailand's capital, are $693 USD.

The financial pressure isn't just about groceries and everyday spending. According to the Manulife report, 43 percent of people are worried about healthcare costs. In many cases, moving abroad can provide access to high-quality private healthcare, often at a lower cost than in some major Western economies.

Bridging the savings gap

Retiring abroad for financial reasons isn't just about spending less; it's also about keeping more of what you have. Beyond lower prices, some countries offer specific tax breaks to attract retirees. These include Greece, which has a flat 7% rate on foreign pension income for up to 15 years for qualifying new residents and Cyprus, which has a similar 5% rate on pensions over approximately €3,400 per year. It has also raised its personal tax-free threshold to around €22,000.

In Italy, some municipalities in the south, including parts of Sicily and Sardinia, allow newcomers to pay a flat 7% tax on all foreign-sourced income for ten years, provided they meet certain conditions, such as not having been recent tax residents.

Destinations actively welcoming retirees

The growing interest in retiring abroad is being matched by policy changes. Countries across Europe, Latin America and parts of Asia have been designing visa schemes and developing tax incentives to attract foreign retirees. They see them as a source of steady income that supports local economies, but without putting pressure on the job market.

This is making it easier for people to consider these destinations, especially those that offer relatively low financial thresholds to obtain residency.

An example is Mauritius, which is attracting a growing number of Swiss and French retirees, among others. The island's government has made it a magnet for European retirees by offering a 10-year Retired Non-Citizen Residence Permit to those aged 50 and over, provided they agree to transfer USD 2,000 a month into a local bank account. For many in the West, a combination of state and private pensions can meet that threshold.

Other countries offer even more accessible gateways. Panama's Pensionado Visa requires a lifetime monthly pension of USD 1,000, and in Portugal, the D7 visa is a popular route. The minimum income (applies to passive income such as pensions, rentals, and investments) is tied to the local monthly minimum wage, which, as of 2026, is around €920 (approximately USD 1,000).

Securing your future

Retiring abroad is no longer just a lifestyle choice. It is increasingly becoming a financial necessity. Moving overseas lets people take more control of a financial future that currently feels uncertain. It turns a potential personal crisis into an opportunity for adventure, a higher standard of living and the peace of mind that comes from having financial stability.