Retirement is when a move abroad often makes the most sense. Your income no longer depends on a job, your time is your own, and a Social Security check or pension can go further in many countries than at home. But retirees also face decisions younger movers don't: Medicare, aging health, estate planning in two legal systems, and distance from children and grandchildren.
This guide pulls together the main decisions. Each section links to deeper guides on the site.
Your retirement income abroad
Start by listing every income source and how it will reach you overseas:
- Social Security. Payments generally continue abroad, with restrictions for a few countries. You can usually receive them in a U.S. account, and in many countries directly into a local bank. Read Social Security abroad.
- Pensions. Ask your plan administrator whether it pays to foreign addresses or accounts, and how it handles tax withholding.
- Military retired pay and VA disability compensation. These can generally continue abroad. Keep your address and direct deposit details current with DFAS and the VA.
- IRAs and 401(k)s. Some U.S. brokerages restrict or close accounts for customers with foreign addresses. Ask before you move, not after.
- Rental income from U.S. property, and any part-time work, which may require a visa that allows it.
Two practical points. First, currency swings change your budget. If the dollar falls 10% against the local currency, your living costs rise 10% in dollar terms. Second, keep at least one U.S. bank account and a reliable way to move money. See banking abroad and cost of living abroad.
Retirement visas
Many countries offer residency to retirees who can show a steady passive income or savings. Requirements vary widely: some ask for a pension of a certain monthly amount, some count Social Security, some require a lump sum in a local bank, and most require health insurance and a background check.
Our guide to retirement visas compares popular programs, and how residency visas work explains the process from consulate appointment to residence card.
Healthcare and the Medicare decision
Medicare usually doesn't pay for care outside the U.S. Medigap's foreign travel emergency benefit is limited to emergencies in the first 60 days of a trip, with a $50,000 lifetime cap. For daily life abroad, you'll rely on the local public system, private insurance or both. Our healthcare abroad guide explains how systems work in popular countries, and international health insurance covers private policies, including the age limits that matter for retirees.
Keep Part B or drop it?
Part A is premium-free for most people with enough work history, so most retirees keep it. Part B is the hard call. Here's the trade-off:
| Keep Part B | Drop Part B |
|---|---|
| You pay monthly premiums for coverage you mostly can't use abroad. | You save those premiums while you live overseas. |
| You're covered immediately if you visit or move back to the U.S. | If you return and re-enroll, you may wait for an enrollment period before coverage starts. |
| No penalty risk. | Medicare.gov says the late penalty is 10% of the standard premium for each full 12-month period you could have had Part B but didn't, usually for as long as you have it. |
Illustrative example: someone who drops Part B for 8 years and then re-enrolls could owe a premium about 80% higher than standard, for life. Whether that's worth it depends on your health, your odds of returning and your insurance abroad.
Veterans and their spouses
Veterans with service-connected conditions can use the VA Foreign Medical Program for care of those conditions abroad. If your spouse has CHAMPVA, the VA's CHAMPVA guide says beneficiaries entitled to Medicare Part A must enroll in and keep Part B to stay eligible, even while living overseas, where CHAMPVA becomes the primary payer. Dropping Part B could end your spouse's CHAMPVA coverage the same day.
Taxes in retirement
U.S. citizens file U.S. returns on worldwide income for life, wherever they live. Retirement income like pensions, IRA withdrawals and Social Security doesn't qualify for the Foreign Earned Income Exclusion, which covers only earned income. Your new country may also tax some of it, depending on local law and any tax treaty. Read U.S. taxes abroad, FBAR and FATCA and state taxes and domicile before you move.
Estate planning in two countries
Once you own property or hold accounts in another country, your estate crosses two legal systems. A U.S. will may be valid abroad, but getting it recognized can be slow and expensive for your heirs, with translations, apostilles and local court steps.
- Consider a local will covering assets in your new country, drafted by a local lawyer. Make sure each will states what it covers so one doesn't revoke the other.
- Understand local inheritance law. Some countries have forced heirship rules that reserve shares for children. In the EU, the law of your last habitual residence generally governs your estate by default, but EU rules let you choose the law of your nationality in your will. How that works for an American, whose inheritance law is set by each state, is a question for a cross-border estate lawyer.
- Review beneficiary designations on U.S. retirement accounts and life insurance. They usually pass outside the will.
- Set up powers of attorney in both countries, for finances and healthcare. A U.S. form may not be recognized by a foreign bank or hospital.
- Keep a document map for your family: where accounts are, who your lawyers are, and where originals are kept.
End-of-life planning
It's not a cheerful subject, but planning ahead spares your family real hardship. When a U.S. citizen dies abroad, the State Department says the U.S. embassy or consulate works to notify next of kin, explains local options for burial, cremation or shipping remains, and can act as provisional conservator of personal effects if no legal representative is present.
The embassy can also issue a Consular Report of Death of a U.S. Citizen Abroad (CRODA), generally based on the local death certificate. Foreign death certificates often aren't accepted in the U.S. for insurance and estate purposes, so the CRODA is what your family will usually use to settle affairs at home. The State Department says it can take four to six months, depending on the country.
The State Department cannot pay to return remains to the U.S. Those costs fall to your family or estate. To prepare:
- Decide your wishes: local burial, cremation or return to the U.S., and put them in writing.
- Fund it: check whether your insurance includes repatriation of remains, or set money aside.
- Tell people: make sure a local friend and your family know your wishes and how to reach each other.
- Enroll in STEP so the embassy has your emergency contacts.
- Veterans: let your family know which VA burial and survivor benefits may apply, and where your DD-214 is kept.
Distance from family
For many retirees, the hardest part isn't paperwork. It's missing grandchildren's birthdays and being far away when a parent or sibling gets sick. Be honest about this when choosing a country. Flight time, direct routes and time zones matter more at 75 than at 65. Some retirees choose a destination a few hours from the U.S. for that reason; others keep a small U.S. base or plan long summers home.
Also think ahead about what happens if your health declines. Who would help you, and where? Would you move back? Making that plan while you're healthy gives you more choices later.
Check before you act
Immigration rules, income minimums, fees, and tax law change, sometimes with little notice. This guide is general information, not legal, immigration, or tax advice.
- Confirm current requirements with the country's official immigration agency or the consulate that will handle your application.
- For US tax questions, use IRS.gov and a tax professional who works with Americans abroad.
- Get advice from a licensed local attorney before signing leases, buying property, or submitting residency paperwork.
Common questions
Can I collect Social Security if I retire abroad?
In most countries, yes, and you can usually have it deposited into a U.S. account or, in many countries, a local one. A few countries have restrictions. See our Social Security abroad guide.
Should I keep Medicare if I retire abroad?
There's no single right answer. Medicare usually doesn't cover care abroad, but if you drop Part B and re-enroll later, Medicare.gov says you may pay a 10% penalty for each full year without it, usually for life. Veterans' spouses on CHAMPVA generally must keep Part B.
Do I need a will in both countries?
Often it's wise. Property abroad is usually governed by local inheritance law, and a will drafted for that country can make probate there much simpler. Have lawyers in both countries make sure the wills don't cancel each other out.
What happens if a US citizen dies abroad?
The U.S. embassy helps notify family and can issue a Consular Report of Death of a U.S. Citizen Abroad, used as proof of death in the U.S. The family or estate pays for burial or repatriation; the State Department cannot.
Sources
- Avoid late enrollment penalties — Medicare.gov. medicare.gov/basics/costs/medicare-costs/avoid-penalties
- Medicare coverage outside the United States — Medicare.gov. medicare.gov/media/4541
- Death Abroad — U.S. Department of State. travel.state.gov/en/international-travel/living-abroad/death.html
- CHAMPVA Program Guide — U.S. Department of Veterans Affairs. va.gov/COMMUNITYCARE/docs/pubfiles/programguides/CHAMPVA-Guide.pdf
- Foreign Medical Program (FMP) — U.S. Department of Veterans Affairs. va.gov/health-care/foreign-medical-program
- Managing an inheritance — Your Europe, European Union. europa.eu/youreurope/citizens/family/inheritances/managing-inheritance/index_en.htm
Last reviewed October 17, 2026. General information only, not legal, immigration, or tax advice. Requirements change, so confirm with official sources before you apply. See our disclaimer.
