Where will you retire? The top places to retire.

Playa Hermosa, Costa Rica

Discussing the place you want to retire in is an important part of your retirement plan.

your PLACE

You should choose the place you want to spend your retirement. First, let’s discuss some of the top places to retire in the world. This will help you understand why these places are the top or up-and-coming retirement destinations and might get your mental juices flowing as you think through your own retirement.

With 75 million baby boomers growing older and looking toward retirement in the next few years, America could see a major shift in where people choose to retire, especially as many are opting to “age in place.” There are plenty of active 55+ neighborhoods and many now include homes, independent living, townhomes to downsize, and assisted living facilities.

Top cities for retirement in the USA

In the USA, states like Arizona and Florida have always had high numbers of retirees and they even have entire retirement communities. But, the trends are starting to change. Some of the most important factors to consider when picking a state for retirement include quality of life, healthcare, affordability, walkability, weather, crime rate, and access to activities. Florida currently ranks number 4 in terms of affordability, 27 in healthcare, and 5th in terms of quality of life. Even though many Americans choose to retire in Florida, you do have to take into account the weather and possible hurricanes, as well as above-average health care costs. Some might enjoy the Florida heat, but others might want to choose a place a little cooler.

In an article in UpNest titled, “10 Best Places in America to Retire,” they did mention Florida and Arizona, but also some unexpected places.

The top 10 list:

1. Florence, SC
2. Macon, GA
3. Lake Havasu City, AZ
4. Vero Beach, FL
5. Texarkana, TX
6. Saginaw, MI
7. Redding, CA
8. Dothan, AL
9. Shreveport, LA
10. Hickory, NC

The high cost of living and rising healthcare costs are some disadvantages of retiring in the United States. Recently there has been an increasing number of people who prefer moving abroad for retirement. Retiring abroad can be an excellent way to adopt a new lifestyle and enjoy tax incentives, affordable housing, and better healthcare. With a wide range of retirement destination options, it may be hard to choose where to settle. You will need to weigh the cost of living, healthcare, lifestyle, and community in some of the best retirement countries.

Two of the top countries to retire abroad

Portugal

Retirement in Portugal and the Updated Golden Visa Program (as of 2024)

Portugal continues to be a top destination for retirees, offering an appealing blend of affordable living, high-quality healthcare, and a rich cultural heritage. From the cobblestone streets of Porto and Lisbon to the serene beaches of the Algarve, Portugal provides a diverse range of retirement options. However, recent changes to the Golden Visa program have significant implications for those considering this route to residency.

Why Retire in Portugal?

• Affordability: Portugal remains one of the most affordable countries in Western Europe for retirees. In smaller towns or cities in the interior, you can live comfortably on as little as $1,700 per month. This includes rent, groceries, and utilities, making it an attractive option for those on a fixed income.
• Healthcare: Portugal offers excellent healthcare services that are both high-quality and affordable. Residents, including those who obtain residency through the Golden Visa, have access to Portugal’s public healthcare system, which is known for its efficiency and low cost.
• Quality of Life: Portugal boasts a relaxed pace of life, beautiful landscapes, and a rich cultural scene. Cities like Lisbon and Porto are filled with historical sites, museums, and modern amenities, making it easy to balance a comfortable lifestyle with cultural enrichment.

Recent Changes to the Golden Visa Program

The Golden Visa program, which was launched in 2012, allowed non-EU citizens to gain Portuguese residency through investment, often in real estate. However, as of 2024, significant changes have been made to this program:

• Real Estate Investments: The most notable change is the restriction on purchasing residential properties in high-density areas like Lisbon, Porto, and parts of the Algarve. This is part of the government’s effort to curb rising real estate prices and redirect investment to less populated areas. Investors now must focus on properties in inland areas, the Azores, or Madeira.
• Increased Investment Thresholds: The minimum investment amount for real estate has been increased. For real estate investments in low-density areas, the minimum requirement is now €500,000, or €400,000 if the property is in a rehabilitation area.
• Alternative Investments: The Golden Visa program still allows for investment in other sectors such as venture capital funds, research, or job creation. These alternatives may appeal to retirees looking to diversify their portfolios while securing residency.

Considerations for Retirees

• Language and Culture: While many Portuguese people speak English, especially in urban areas, learning Portuguese can help with integration and ease of daily life. Cultural differences, such as the slower pace of life, can be both a benefit and a challenge, depending on your lifestyle preferences.
• Double Taxation: Portugal has tax treaties with several countries, including the U.S., which can help avoid double taxation on income. However, it’s important to consult with a tax advisor to understand your specific obligations.
• Residency without a Golden Visa: For those who prefer not to invest heavily or who find the Golden Visa’s new requirements restrictive, Portugal offers other residency options, such as the D7 Visa. This visa is ideal for retirees with passive income from pensions or investments, offering a simpler and less costly path to residency.

Resources for Further Information

Portugal’s Golden Visa Information: Detailed guides on current investment options and requirements.

Healthcare in Portugal: Comprehensive information on accessing and navigating the healthcare system.

Portuguese Tax Considerations for Expats: A guide on taxation and how to manage dual tax obligations.

Bottom Line

Portugal remains an attractive retirement destination, offering a mix of affordability, high-quality healthcare, and a rich cultural experience. With the recent changes to the Golden Visa program, retirees need to carefully consider their options and possibly explore alternative pathways to residency. Consulting with financial and legal advisors is essential to make informed decisions that align with your retirement goals. Please check updated information as these Visa programs are constantly changing.

Costa Rica

Costa Rica is a beautiful country located in Central America. Greetings like “Pura Vida,” which means “pure life,” describe everything about the country’s culture. With coffee plantations, beautiful beaches, and cloud forests, Costa Rica has so much to offer. The “pure life” lifestyle encourages you to worry less and get outdoors for enjoyment and pleasure.

With as low as $1600 monthly, a single person can reside in expensive cities like Tamarindo and San Jose. With $2500 to $3000 per month, you can enjoy high-quality food, housing, medical care, utilities, and entertainment with your spouse.

Costa Ricans can either opt for a universal medicine program or a private policy. An ordinary doctor’s visit can cost you about $50, while you will need to part with $80 for a consultation with a specialist. Living in the city may not favor you if you are on a budget, but there are plenty of other coastal towns to consider. Jaco is a popular surfing town in Puntarenas. A recent article in The Guardian, “‘It feels like home’: why are Black Americans moving to Costa Rica?” revealed that many Americans are choosing to retire there, and even create communities of expats. In the town of Puerto Viejo, the expat community even hosts local Soul Food Sundays and Karaoke nights. Having a built-in and welcoming community is definitely a plus when retiring to a new country where you have to adjust and learn the lay of the land.

Other places to consider

• Comporta, Portugal
• Puerto Vallarta, Mexico
• Cayo, Belize
• Panama
• Northern Cyprus
• Paris, France
• County Clare, Ireland
• Città Sant’Angelo, Italy
• Salinas, Ecuador
• Malaga, Spain
• Switzerland
• New Zealand

Maybe you love where you live and will choose to stay right where you are. Or, maybe you are considering relocating closer to your family, or your children and grandchildren, or to a place you enjoy – like the beach or the mountains. You might have old friends you want to live near and reconnect with. Or, you just might want to start over and have a change of scenery.

It is worth having a discussion or at least considering why you chose the place you currently live. Did your career take you there? Was it because you thought it would be a good place to raise a family? When you step back and examine your choices, perhaps you’ll find that the reasons you chose that place won’t necessarily apply to your circumstances in retirement. Some financial aspects to consider include making sure your mortgage is paid off – this has been proven to directly impact your level of happiness in your retirement. Something else to consider is downsizing, but that is a bit complicated with the cost of homes now. These are all questions to ponder and work through.

One thing to consider is if you are thinking about moving to a new location or even overseas, you might want to have a conversation with your family members about this decision.

Deciding on your place

Circle the items below that matter most to you when deciding where you want to live.

• arts + culture
• proximity to your closest friends
• close to family (parents, children, and grandchildren…)
• diversity of people
• good public transportation
• plenty of entertainment options nearby
• close to an airport for travel
• good hiking trails
• quiet + peaceful
• great shopping
• urban
• near the mountains
• healthcare costs
• enjoying all four seasons
• good restaurants
• vacation lifestyle
• biking trails
• accessible medical care
• cost of living
• affordable housing
• rural
• retirement community
• near the ocean
• suburban
• desire to downsize
• snow
• lower taxes
• close to a lake
• warm weather year-round
• near golf courses
• walkable neighborhood
• sporting events

From what you circled above, write down your top 5 things, in the order of importance for you. Again – this is very personal, so in case you have a life partner, you may consider starting with 2 separate lists, and then working together to find a common list of Top 5.

1. ______________
2. ______________
3. ______________
4. ______________
5. ______________

1. ______________
2. ______________
3. ______________
4. ______________

Disclaimer & Disclosure:
This article is intended to help you think about some aspects of retirement and the choice of where to retire, but it should not be considered as a definitive or exhaustive resource. Each person’s situation is unique, and therefore your experience may be different and your key considerations will be different. The cost of living numbers mentioned above are based on what we have seen quoted as typical, but you will have to do your due diligence to confirm the costs for your specific situation. The rankings of retirement destinations in the USA and abroad are based on our personal perspectives and information available online at the time of this article, however this can change and there may also be multiple different such rankings available from different sources. Goodwin Investment Advisory does not receive any compensation from the sources listed above.

If you are considering where to retire, please contact us and speak to an advisor, so that we can support you in making the decision.

Disclosure – All investment carries risk, and we cannot guarantee performance or results. Past performance does not guarantee future results. GIA does not earn any compensation from any of the non-GIA links provided in these resources. The market insights, podcast, blogs, book recommendations, self improvement thoughts, food recipes and activities are based on our perspectives and experience, and may not apply to your unique situation or be appropriate for your health and wellness. We are not aware of any conflicts of interest relating to any testimonials or endorsements. Please contact us for any questions relating to the content above, or to discuss how we can support you in your specific situation, and help you to reach your financial and personal goals.