This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gringo Retirement: Living Abroad in Economic Refuge

NEW YORK ( MainStreet)--A couple from Hendersonville, N.C. always dreamed of settling down in paradise and moved to Belize last year to retire along the scenic barrier reefs.

"Our primary financial motivation for retiring abroad was to achieve a lower cost of living in a tropical setting," said David Wright, 65, who moved with his wife, Elizabeth, 52, to Ranchito Village, an expatriate enclave near Corozal, Belize.

For Americans retiring overseas, places in Latin America and the Caribbean are an economic haven for stretching a dollar and paying less in healthcare costs.

"The strategy is to move somewhere that counts, and the cost of living in Latin America is a fraction of the cost of the U.S," said Dan Prescher, special projects editor at International Living, a publication that focuses on international retirement.

The rising cost of healthcare coverage and limited savings other than home equity are pressuring many baby boomers to consider retirement abroad to lower their living expenses.

Half of Americans have less than $25,000 in total savings, excluding the value of their primary home and pension plans, according to a March 2013 survey conducted by the Employee Benefit Retirement Institute.

"Most Americans are not saving enough for a secure retirement, and an alarming number of Americans do not participate in any retirement savings program," said Ronald, O'Hanley, president of asset management and corporate services at Fidelity Investments.

Only 45% of American workers have a pension or 401(k) plan, according to Center for Retirement Research at Boston College. Around one-third of U.S. retirees receive at least 90% of their retirement income from Social Security benefits.

The average annual Social Security benefits for a recent U.S. retiree provides around a modest $15,000 a year.

For stretching a fixed income, a rising number of those Social Security checks are going abroad to expatriates settled in retirement enclaves in Latin America and the Caribbean.

"You can live almost anywhere in Latin America on $2,000 [a month], but we see some people do it for a lot less on $600 or $700," Prescher said. "But, they're living a different type of lifestyle amongst the locals."
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TSLA $149.01 0.69%
YHOO $26.88 -0.63%
AAPL $94.75 -0.27%
FB $100.47 0.72%
GOOG $687.27 0.66%


Chart of I:DJI
DOW 15,948.39 -78.66 -0.49%
S&P 500 1,848.65 -4.79 -0.26%
NASDAQ 4,274.7890 -8.9640 -0.21%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs