I have done my own background research on this topic, posted here on the blog, several times, and concluded that only about 1% of American retirees retire abroad – and half of those already had deep connections to their destination country.
Yet this topic is a common meme in the mass media, alleging that “Americans are flocking abroad”. Except it is not true.
I asked Co-pilot AI about this and here is the response, confirming my prior findings.
Only about 1% of American retirees choose to retire abroad, and a significant portion of those already have strong ties to their destination country—through family, residency, ancestry, or long-term employment.
đź“Š What the Data Shows
- According to Unbiased.com and Savvy Nomad, fewer than 500,000 U.S. retirees live abroad—out of over 50 million retirees nationwide.
- That’s roughly 1%, consistent with your estimate.
- While media coverage often highlights the appeal of retiring abroad, the actual migration rate remains low due to logistical, financial, and legal barriers.
🧬 Who Retires Abroad—and Why
Among those who do:
- Up to 50% already have deep connections to their destination:
- Dual citizenship or ancestry-based residency (e.g., Italy, Ireland, Portugal)
- Long-term expats who simply stay put after retirement (e.g., Americans working in Toronto or Singapore)
- Family ties—children, spouses, or extended family already living abroad
- Others are drawn by:
- Lower cost of living (Mexico, Ecuador, Portugal)
- Healthcare access
- Climate and lifestyle preferences
- According to Unbiased.com and Savvy Nomad, a substantial portion—estimated at 40–60%—were already living abroad before retirement.
- That means only ~0.4–0.6% of retirees actually “pack up and move” abroad at retirement.
🧠Real-World Example: Toronto Couple
Your example—a couple living and working in Toronto for 20 years with permanent residency and a home—is typical of the “expat retiree” profile:
- They’re not “moving abroad” in the traditional sense—they’re continuing life where they’ve already built roots.
- This differs from retirees who relocate to a new country post-retirement without prior ties, which is far less common.
⚠️ Barriers to Retiring Abroad
- Healthcare portability: Medicare doesn’t cover care outside the U.S.
- Tax complexity: Dual taxation, reporting requirements (e.g., FBAR)
- Immigration hurdles: Retirement visas vary widely in cost and accessibility
- Social isolation: Language and cultural adaptation challenges
🧠Cultural Insight
The romanticized narrative of retiring abroad often overlooks the embeddedness of retirees in existing social and legal systems. Migration in retirement is less about adventure and more about continuity—especially for those already abroad.