Retirement abroad cost calculator

Inputs

Monthly US cost of living	$5,000
Destination cost % of US	60%
Monthly US healthcare	$700
Monthly destination healthcare	$200
Annual visa + immigration fees	$1,200
Flights home per year	2
Cost per round-trip flight	$1,400

Supporting metrics

Monthly cost in destination	$3,200
Annual cost in destination	$42,400
Annual cost staying in US	$68,400

About this calculator

Retiring abroad — the budget delta

The moves to Mexico / Portugal / Costa Rica / Thailand are real, and the cost-of-living delta is real. The two costs that cut into the savings: visa/immigration fees (annual or biannual renewals) and flights home (which compound if you have grandkids).

Cost-of-living index reference

Mexico (Lake Chapala, Mérida): 50-65% of US for similar lifestyle
Portugal (Algarve, Porto): 55-70%, but has tightened post-D7-visa boom
Costa Rica (Atenas, Escazú): 65-80%
Spain (smaller cities): 60-75%
Thailand: 40-55%
Switzerland / Norway / Iceland: 100-130% (more expensive than US)

What this calc misses

Income tax treaty implications — Portugal NHR (now ending), Mexico's residency-based system, Costa Rica's territorial taxation
Currency risk — most destinations price in local currency; USD weakens 10-15% over 5 years and your savings shrink
Property purchase vs rental math — retiring abroad usually starts with rental
Social Security portability — most countries OK, North Korea / Cuba blocked
Medicare gap — Medicare doesn't cover services abroad (excluding emergency near border). Most expat retirees keep Part A (free) and skip Part B until returning.

FAQ

Is healthcare really that much cheaper?

For routine + most procedures: yes. Mexico private = 30-40% of US. Costa Rica public+private = 25-50% of US. Portugal NHS-equivalent: free for residents post-12-months. The exception: highly specialized cancer / cardiac surgery — many expats fly back to US for major events. Budget for that.

Do I still pay US taxes?

Yes — US is one of two countries (Eritrea is the other) that taxes citizens on worldwide income regardless of residence. Foreign Earned Income Exclusion ($126k 2024) can shield wages, but Social Security + retirement income is fully taxable. Foreign tax credits prevent double-tax.

What if I want to come back?

Easy if you keep US passport + Social Security. Medicare: re-enrolling in Part B after a gap triggers a permanent 10%/yr-gap premium penalty — DON'T cancel Part B if you might return. Healthcare reactivation is the friction point most expat returners hit.