Retiring abroad could lower your cost of living, experts say (cnbc.com)
As noted here many times, an estimated less than 1% of U.S. retirees retire abroad. At any given time, an estimated 2-3% of Americans are living abroad, usually on temporary education or work assignment.
About half of those who retire abroad had prior dual citizenship (they were born outside the U.S. or born in the US when one or both parents were immigrants with foreign citizenship) or were already living in another country, typically because they had been working abroad, or had family already living abroad. The largest group of those retiring abroad are living in Mexico and Canada.
While Americans who retire abroad can collect Social Security, Medicare does not provide health benefits (in general) outside the U.S.
To maintain status in Medicare, while abroad, if the retiree moves back they need to have paid into Medicare while outside the U.S. If they do not do so, they will be assessed a 10% Part B premium penalty, forever, for each year they did not pay into Medicare. After ten years, that means, upon return, they will pay twice the going rate for Medicare Part B – forever. Upon return, they might not be able to obtain Medicare Supplement plans which are guarantee issue only when you first start Medicare, typically at age 65.
Yet here we are with this myth that American’s are flocking to retire abroad. It’s a myth and longtime staple of media content mills.