Why More Americans Are Retiring Abroad on Social Security
If you are approaching retirement and wondering whether your Social Security check can give you a comfortable life, the answer is yes, but probably not in the United States. The average Social Security retirement benefit in 2026 is around $1,900 per month. In most American cities, that barely covers rent, let alone food, healthcare, transportation, and the occasional dinner out. But in dozens of countries around the world, $1,900 a month puts you solidly in the middle class or even above it.
I have been living abroad for over a decade while building my ecommerce businesses, and I have seen firsthand how much further your money goes outside the US. Retirees I have met in Southeast Asia, Latin America, and Southern Europe are living better on Social Security alone than they ever could back home. If you want to understand the business model that gave me the freedom to live anywhere, start with my complete guide to high-ticket dropshipping because it works just as well for supplementing retirement income as it does for full-time entrepreneurs.
This guide covers the best countries where your Social Security check goes the furthest, what to watch out for, and how to set up your finances so you can collect your benefits without any issues while living overseas. For more about everything E-Commerce Paradise offers, check out the homepage.
How Social Security Works When You Live Abroad
The good news is that the Social Security Administration will send your benefits to almost any country in the world. As the SSA international payments page explains, there are a few exceptions (Cuba, North Korea, and a handful of others with US sanctions), but for the vast majority of popular retirement destinations, your monthly check keeps coming regardless of where you live.
You do need to notify the SSA of your foreign address and keep your contact information current. The SSA may periodically require proof that you are still alive and eligible for benefits, which usually means filling out a questionnaire or visiting a US embassy or consulate. This is standard procedure and not something to worry about as long as you stay on top of it.
Taxes on Social Security Abroad
This is where it gets important. As a US citizen, you are required to file US taxes on your worldwide income no matter where you live. Social Security benefits may be partially taxable depending on your total income. If Social Security is your only income and the total is below certain thresholds, you may owe little or nothing in federal tax. But if you have other income sources (pension, investment income, rental income, or ecommerce revenue), your Social Security benefits could be up to 85% taxable.
Some countries have tax treaties with the US that prevent double taxation on Social Security benefits. Others do not. Before you move, research the specific tax treaty (or lack thereof) between the US and your destination country. For help navigating expat tax obligations, FreshBooks makes it easy to track your income and expenses throughout the year so tax time is not a scramble.
Best Countries to Live Abroad on Social Security in 2026
I have ranked these countries based on a combination of cost of living, quality of life, healthcare accessibility, safety, ease of getting a retirement visa, and how welcoming the country is to American retirees. Every country on this list is somewhere you can live comfortably on $1,500 to $2,200 per month, which is the range most Social Security recipients fall into.
Portugal
Portugal has become the most popular European retirement destination for Americans and for good reason. The cost of living outside Lisbon is remarkably affordable for Western Europe. In cities like Braga, Coimbra, or Faro, you can rent a nice one-bedroom apartment for $500 to $700 per month. Groceries, dining out, and transportation are all significantly cheaper than the US. The healthcare system is excellent, with both public and private options available to residents.
Portugal offers a D7 passive income visa specifically designed for retirees and people with regular passive income. Social Security qualifies. The visa process is straightforward, and after five years of legal residence you can apply for permanent residency or citizenship. The country also has a large English-speaking expat community, so the language barrier is manageable even if you never learn Portuguese.
Mexico
Mexico is the closest and most convenient option for American retirees. Cities like Merida, Lake Chapala, San Miguel de Allende, and Puerto Vallarta have huge American expat communities with established infrastructure for English-speaking retirees. The cost of living varies by location but you can live very comfortably in most Mexican cities for $1,200 to $1,800 per month.
Healthcare in Mexico is both affordable and high quality, especially in major cities with modern private hospitals. Many American retirees use a combination of Mexican private insurance and Medicare (though Medicare does not cover you outside the US, which I will address later). The temporary resident visa for retirees is easy to obtain if you can show regular monthly income from Social Security or a pension.
Thailand
Thailand remains one of the most affordable retirement destinations in the world. Chiang Mai in particular has become a hub for American and European retirees, with a monthly cost of living that can be as low as $1,000 to $1,500 for a comfortable lifestyle. That includes a modern apartment, eating out regularly, and accessing excellent private healthcare at a fraction of US prices.
I have spent years living in Chiang Mai and Bangkok, and the quality of life relative to cost is unbeatable. Thailand offers a retirement visa (Non-Immigrant O-A) for people over 50, though you need to meet either a financial deposit requirement or show monthly income of at least 65,000 baht (roughly $1,800). The food is incredible, the people are welcoming, and the infrastructure for expats is well developed.
Ecuador
Ecuador is one of the most retiree-friendly countries in the world. The Pensioner Visa (Visa de Jubilado) requires only $1,525 per month in pension or Social Security income, making it accessible to most retirees. Cuenca and the coastal city of Salinas are the most popular destinations for American retirees.
Ecuador uses the US dollar as its official currency, which eliminates exchange rate risk entirely. You know exactly what your Social Security check is worth every month. The cost of living is remarkably low: a couple can live comfortably in Cuenca for $1,500 to $2,000 per month including rent, food, healthcare, and entertainment. The healthcare system is good, with both public coverage available to visa holders and affordable private insurance options.
Colombia
Colombia has transformed dramatically over the past two decades and is now one of the most popular expat destinations in Latin America. Medellin consistently ranks as one of the best cities in the world for retirees thanks to its perfect year-round climate, affordable cost of living, modern infrastructure, and welcoming culture. You can live well in Medellin for $1,200 to $1,800 per month.
Colombia offers a retirement visa for people receiving a pension or Social Security of at least three times the Colombian minimum wage (roughly $900 per month in 2026). Healthcare in Colombia is excellent and affordable. Many retirees join the national health system (EPS) for around $30 to $80 per month, which covers most medical needs. For anything the public system does not cover, private clinics and hospitals are a fraction of US prices.
Malaysia
Malaysia’s My Second Home (MM2H) program has long been one of the most popular retirement visa programs in Asia. While the requirements have changed over the years, Malaysia remains an exceptional value for retirees. Kuala Lumpur and Penang offer modern amenities, world-class healthcare, excellent food, and a large English-speaking population at a fraction of Western prices.
A couple can live very comfortably in Penang for $1,500 to $2,000 per month. Private healthcare is outstanding, with hospitals like Penang Adventist and Gleneagles regularly ranked among the best in Asia. The country is safe, the infrastructure is modern, and the food scene alone is worth the move.
Panama
Panama’s Pensionado visa program is one of the oldest and most generous retirement visa programs in the world. It requires a minimum pension income of just $1,000 per month and grants holders significant discounts on everything from healthcare to entertainment to utilities. Pensionado visa holders get 25% off airline tickets, 25% off restaurants, 15% off hospital bills, and numerous other discounts.
Panama City is more expensive than other Latin American capitals but still significantly cheaper than most US cities. If you move outside the capital to areas like Boquete, David, or the Azuero Peninsula, costs drop further. Panama also uses the US dollar as its official currency alongside the Panamanian balboa (pegged 1:1), so you have the same exchange rate stability as Ecuador.
Vietnam
Vietnam is the most affordable country on this list by a significant margin. In cities like Da Nang, Hoi An, and even Ho Chi Minh City, you can live extremely well for $800 to $1,200 per month. That includes a modern apartment, eating out for most meals, and accessing good healthcare. A Social Security check of $1,900 per month makes you genuinely wealthy by local standards.
The main drawback is that Vietnam does not offer a dedicated retirement visa. Most long-term expats use a combination of tourist visas and business visas, which requires periodic renewal. The country is actively working on a retirement visa program, so this may change in the coming years. Despite the visa complexity, the extreme affordability and incredible quality of life make Vietnam worth considering.
Healthcare Considerations for Retirees Abroad
Healthcare is the single biggest concern for most Americans considering retirement abroad, and rightfully so. As Medicare.gov confirms, Medicare does not cover you outside the United States (with very limited exceptions near the Canadian and Mexican borders). This means you need an alternative healthcare plan for wherever you choose to live.
Options for Healthcare Coverage Abroad
Most retirees abroad use one or a combination of these approaches. First, you can join the local public healthcare system in your destination country if your visa allows it. Countries like Ecuador, Colombia, and Portugal offer public healthcare to legal residents at very low cost. Second, you can purchase private international health insurance designed for expats. Third, you can pay out of pocket for routine care (which is shockingly affordable in most countries on this list) and carry a catastrophic coverage plan for emergencies.
For expat health insurance that is designed specifically for people living abroad long-term, SafetyWing offers plans that work in most countries and are significantly cheaper than comparable US coverage. Their Nomad Insurance plan is popular with both digital nomads and retirees because it provides solid coverage without the complexity of traditional international insurance policies.
Medical Tourism Advantage
One underappreciated benefit of living abroad is access to high-quality medical care at dramatically lower prices. Dental work, elective procedures, and even major surgeries cost 50 to 80 percent less in countries like Thailand, Colombia, and Mexico compared to the US. Many retirees schedule their medical procedures around their travel and save thousands of dollars every year.
Setting Up Your Finances for Retirement Abroad
Getting your financial infrastructure right before you leave the US is critical. You do not want to be troubleshooting banking issues from a different time zone with spotty internet. Here is what you need to set up before you go.
Banking
Keep a US bank account open. You need it to receive your Social Security direct deposit and to maintain your US financial ties. Not every bank is friendly to customers with foreign addresses, so choose carefully. I wrote a detailed guide on how to keep your US bank account while living abroad that covers which banks work best and which ones will close your account the moment you update your address.
For moving money between your US account and your local currency abroad, Wise offers the best exchange rates and lowest fees of any transfer service I have used. You can set up automatic transfers so your Social Security funds move to your local account on a schedule without you having to do anything each month.
Virtual Mailbox
You need a US mailing address for your bank, the SSA, the IRS, and any other institutions that require a physical US address. A virtual mailbox service gives you a real street address (not a PO box) where your mail gets scanned and uploaded to a dashboard you can access from anywhere. iPostal1 is one option I recommend because they have locations across the US and their scanning quality is excellent.
Phone and Communication
You will want to keep a US phone number for two-factor authentication on your bank accounts, for calls with the SSA, and for staying in touch with family. Google Fi works in most countries with data and texting included at no extra charge, making it the easiest solution for retirees who do not want to deal with local SIM cards.
For staying connected to your US phone number while abroad, Amigo eSIM provides affordable international data plans that work alongside your existing number.
Supplementing Social Security With Ecommerce Income
Here is where I get really excited, because this is where the two worlds I know best overlap. If your Social Security check is not quite enough to live the retirement you want, even in an affordable country, building a small ecommerce business can bridge that gap and then some.
High-ticket dropshipping is particularly well suited for retirees because it does not require physical inventory, can be managed from anywhere with an internet connection, and generates meaningful revenue from a relatively small number of sales. One or two sales per day on a high-ticket store can add $2,000 to $5,000 per month to your income, which combined with Social Security puts you in an extremely comfortable position anywhere in the world.
If this sounds interesting, my high-ticket niches list has over 1,000 profitable niches you can explore. Many of my students started their stores in retirement or semi-retirement and are now earning more from their ecommerce businesses than they ever made in their careers.
Getting Started Is Simpler Than You Think
You do not need technical skills to start. Shopify handles all the technical infrastructure, and with a good theme like the Superstore Theme, your store looks professional from day one. The key is finding the right niche with US-based suppliers who offer authorized dealer agreements and MAP pricing, which my supplier sourcing guide covers step by step.
The beauty of this model is that your suppliers ship directly to your customers from warehouses in the US. You never touch the product. You manage your store from your laptop, whether that laptop is in Chiang Mai, Medellin, or a beach town in Portugal. It is the definition of location-independent income.
Using AI to Manage Your Business
Running an ecommerce store has gotten significantly easier with AI tools. You can use ChatGPT for writing product descriptions, handling customer email templates, and researching suppliers. For keyword research and SEO to drive organic traffic to your store, KWFinder helps you find the exact search terms your potential customers are using so you can create content that ranks.
Outsourcing the Day-to-Day
Once your store is generating revenue, you can hire virtual assistants to handle customer service, order processing, and inventory updates. Fiverr is a great starting point for finding freelancers who can handle specific tasks, from logo design to product listing creation. As your store grows, you might want a dedicated VA, and I cover that entire process in my business formation checklist.
Common Mistakes Retirees Make When Moving Abroad
I have seen a lot of people make these mistakes, and they are all avoidable with a little planning.
Not Doing a Test Run
Do not sell your house, liquidate everything, and move to a country you have never spent more than a week in. Rent a place for two to three months first. Live like a local, not a tourist. Go grocery shopping, visit the local clinic, deal with the bureaucracy, and see how you feel after the vacation glow wears off. This test run will either confirm your choice or save you from a very expensive mistake.
Closing All US Bank Accounts
Keep at least one US bank account and one US credit card open. You need them for Social Security deposits, tax payments, online purchases from US companies, and as a financial safety net. Some banks will close your account if you change your address to a foreign one, so set up your virtual mailbox address as your bank address before you leave.
Ignoring Tax Obligations
Moving abroad does not exempt you from US taxes. You are still required to file every year, and depending on your income, you may still owe federal tax. Additionally, if you have foreign bank accounts with aggregate balances over $10,000, you must file an FBAR. My FBAR filing guide explains exactly what you need to do.
Not Having International Health Insurance
Medicare stops at the US border. If you move abroad without arranging health coverage and have a medical emergency, you could face devastating bills. Get international health insurance before you leave, even if you plan to use the local public system. The private insurance serves as your safety net while you navigate the local healthcare bureaucracy.
Underestimating the Adjustment Period
Culture shock is real, even in the most expat-friendly destinations. The language barrier, different food, unfamiliar bureaucracy, and distance from family and friends can be overwhelming in the first few months. Give yourself at least six months before making any judgments about whether a place is right for you. Join local expat groups, find activities you enjoy, and build a routine. It gets easier.
Legal and Administrative Steps Before You Leave
There is a checklist of things you should handle before you board that plane, and skipping any of them can create problems that are much harder to fix from overseas.
Power of Attorney
Set up a durable power of attorney with someone you trust in the US. The Consumer Financial Protection Bureau’s POA guide explains the different types and how they work. If you need someone to handle legal or financial matters on your behalf while you are abroad, having a POA in place saves enormous headaches. LegalZoom offers affordable POA packages that are legally valid in all 50 states.
Estate Planning
Make sure your will, beneficiary designations, and estate plan are updated to reflect your new living situation. Assets in multiple countries can create complicated probate situations if your estate planning is not current. This is especially important if you own property abroad.
Social Security Direct Deposit
Set up direct deposit for your Social Security benefits before you leave. You can have the SSA deposit directly into your US bank account (recommended) or in some cases into a foreign bank account. The US bank account route is simpler because it avoids international transfer delays and potential issues with foreign bank reporting requirements. From your US account, use Wise to transfer what you need to your local account each month at the best available exchange rate.
Notify the SSA
Tell the Social Security Administration that you are moving abroad. You can do this online, by phone, or at your local SSA office. They will update your records and ensure your benefits continue without interruption. The SSA also needs to know your foreign address for their periodic questionnaires confirming your eligibility.
Building Your Support System Abroad
One of the most important things I have learned from over a decade of living abroad is that your support system matters more than your location. The most beautiful country in the world will feel miserable if you are isolated and lonely.
Find the Expat Community
Every popular retirement destination has an active expat community. Facebook groups, local meetups, clubs, volunteer organizations, and churches all provide ways to connect with other Americans and international residents. In places like Lake Chapala (Mexico), Cuenca (Ecuador), and Chiang Mai (Thailand), the expat communities are so well established that you can find English-speaking doctors, lawyers, accountants, and social groups within your first week.
Stay Connected With Home
Technology has made it easier than ever to stay close to family and friends back in the US. Video calls, messaging apps, and social media keep you connected daily. Google Workspace gives you the full suite of communication and productivity tools you need to stay organized and connected from anywhere in the world.
Learn the Local Language
Even if you settle in an area with a large English-speaking community, learning at least basic conversational skills in the local language transforms your experience. It opens doors to deeper friendships, better deals, easier bureaucratic processes, and a genuine connection to the culture you have chosen to call home. You do not need to be fluent. Even basic greetings and simple transactions in the local language earn enormous goodwill.
How E-Commerce Paradise Can Help You Build Income From Anywhere
Whether you are looking to supplement your Social Security with ecommerce income or build a full location-independent business, E-Commerce Paradise has everything you need to get started.
If you want a store built for you from scratch with suppliers already onboarded and ready to sell, our Turnkey Done-for-You Store Service handles the entire setup process.
For personalized strategy and guidance, our 1-on-1 Coaching Program gives you direct access to me so we can map out exactly how to build your business based on your specific situation.
The Ecommerce Paradise Masterclass and Community Group Coaching Program is a comprehensive training program that walks you through every step from choosing a niche to scaling your store to six figures.
We also run Google Shopping Ads campaigns for store owners who want professional ad management to drive traffic and sales. And for the complete list of tools I use and recommend, visit our Resources page.
I wish you guys the best of luck out there. Retirement abroad is one of the best decisions you can make, and Social Security can take you much further than you think when you pick the right destination. Thanks so much, and I will see you in the next one. Take care.
Related Articles
If you found this useful, these guides go deeper on related topics:
- Best Countries to Retire Cheaply in 2026
- Cost of Living Abroad vs USA in 2026
- Best Bank Accounts for American Expats in 2026
- Best Health Insurance for American Expats in 2026
- Complete Moving Abroad Checklist for 2026
Trevor Fenner
Email: trevor@ecommerceparadise.com
Phone: (307) 429-0021
5830 E 2nd St, Ste. 7000 #715, Casper, WY 82609
About | Contact | Resources
Trevor Fenner is an ecommerce entrepreneur and the founder of Ecommerce Paradise, a platform focused on helping entrepreneurs build and scale profitable high-ticket ecommerce and dropshipping businesses. With over a decade of hands-on experience, Trevor specializes in high-ticket dropshipping strategy, niche and product selection, supplier recruiting and onboarding, Google & Bing Shopping ads, ecommerce SEO, and systems-driven automation and scaling. Through Ecommerce Paradise, he provides free education via in-depth guides like How to Start High-Ticket Dropshipping, advanced training through the High-Ticket Dropshipping Masterclass, and fully done-for-you turnkey ecommerce services for entrepreneurs who want a faster, more hands-off path to growth. Trevor is known for emphasizing sustainable, real-world ecommerce models over hype-driven tactics, helping store owners build scalable, sellable, and location-independent brands.
