Mexico continues to be the preferred country for retirement among United States citizens, as confirmed in an updated 2024 report by Investopedia.
In 2020, more U.S. citizens moved to Mexico than to any other country, and was a top destination for retirees. And in 2022, the U.S. State Department reported that 1.6 million U.S. citizens were residing in Mexico.
For many, the main reason behind retiring in Mexico or any other country is affordability — looking for a quality of life that is no longer within reach in the U.S.
“While retirement abroad requires careful planning about visas and taxes, staying in the U.S. could mean managing higher costs of living and expensive health care,” Investopedia said in a March report.
Which countries are U.S. citizens’ favorite destinations abroad?
Mexico tops the list as a destination for U.S. citizens living here, according to data reported by the U.N. in 2020. Canada is the second most popular destination, with 273,226 U.S citizens residing there.
The other countries rounding out the top 10 choices are as follows:
- The United Kingdom: 170,771
- Germany: 152,639
- Australia: 116,620
- Israel: 76,794
- South Korea: 68,050
- France: 61,668
- Japan: 58,340
- Spain: 57,112
Cheaper housing and healthcare: big motivators
The Organization for Economic Cooperation and Development (OECD) found that average housing prices in these countries are lower than in the United States, with the exception of Canada.
However, according to the OECD’s most recent data, average housing costs in Mexico are significantly lower — 21% lower than in the U.S.
Mexico also has the cheapest healthcare among the top 10 destinations.
According to the OECD, healthcare in Mexico is 60% cheaper than in the U.S., a fact that is also driving Mexico’s medical tourism industry. In 2023, Mexico ranked as the world’s second most popular country for medical tourism.
U.S. retirees with legal residency in Mexico can sign up for public health insurance through the Mexican Social Security Institute (IMSS) and pay a premium that is much smaller than just about any health insurance premium in the U.S. However, most choose to buy private insurance coverage since many find private healthcare in Mexico to be more affordable than in the U.S.
Medicare doesn’t follow U.S. citizens abroad — but Social Security does in the top 10 countries on the list. And, yes, you can continue to collect your Social Security payments if you’re retired and living in Mexico. The U.S. Social Security Administration sent some 62,000 payments to Mexico as of November 2022, just behind Canada and Japan.
With reports from Investopedia
It’s better no to pay for insurance. Going to see an specialist is around $50. USD
Medications are very affordable.
Lab work and other test are also very affordable.
Yes, but what if you need surgery, or diagnosed with cancer? Those things are not affordable for some, even if they are less than in the US. I don’t recommend anyone goes without some type of coverage, unless they have quite a bit of money in the bank. The other option, that many take, is to go back to the US for major issues.
It depends if you are in optimal health, you do not need insurance and most of it is just a waste. I have had an operation in Mexico for my wrist and went in the hospital recently with pneumonia. I wouldn’t have even made the deductible with any of the top insurances at my age. So no insurance isn’t for everyone. If you are chronic you should research how to get rid of the disease. Since almost all chronic diseases are from diet and lifestyle, instead of wasting the money with insurance companies why not get good food and join a gym?
Yes, I agree. Most medical costs are less than the co-pay on a US policy. I keep my Medicare just in case of a catastrophic expense and a much less Medical Flight policy to get me and my spouse back to an American hospital that accepts Medicare.
YEs and getting treated for a stroke or heart attack requires usually a US$50K payment just to be admitted
If you are retired in Mexico and on Medicare, I strongly suggest you buy an air evacuation policy. And if I wasn’t on Medicare I would have some form of health insurance that covers here and or USA. When we first moved here my healthy, marathon running husband had a sudden medical crisis. This was more than 15 year’s ago but our total bill was $150,000. Healthcare is less expensive here – but I can’t imagine what 6 weeks hospitalized in ICU would cost today. I just pay for routine care and labs but I am still covered by a gap plan that covers acute care in Mexico and always keep my SkyMed Evacuation active. ( The gap plan is part of a retirement program my husband earned. Massachusetts mandates that all Medicare gap plans sold in USA cover emergency care worldwide. With remote working & world retirement- we all need better coverage.
I see that you’re from MA. I lived there when I was younger, and much of my family is from there. Certainly some of the best healthcare in the country. Do you know if the Medigap plans work the same way in other states?
Thanks
Thank you Carol for confirming my plan for medical care while I am retired in Mexico
i do exactly the same as you. Sky Med is $3500usd for 2 of us for 5 yrs. i had 3 surgeries in 2021 and ppent 9 total days in the hospital. total for everything including ambulance and my MedTec pacemaker was $21000usd. fabulous care, especially during co-vid
Because Dumbocrats keep raising taxes and spending until they can’t afford their homes in their Dumbocrats cities and states.
🤡🤡🤡
Name calling. And clown faces. How original.
MAGA and Donald Trump, two great reasons to call Mexicvo your home.
Keep BS politics out of the conversation please.
I agree with T. This is another reason that I enjoy live in Mexico. I do not have to listen to political crap.
What I have found is that there are thousands of Mexican/Americans that are moving back to Mexico in their retirement. They went to the states for jobs. They raised their children in the USA and now it is time to retire. Best of both worlds.
The other option I see most is the Snow Bird gaining residency in Mexico. Living in Mexico 5-7 months of the year, maybe a little longer. If S–T hits the fan back home, they have a nice place to go and they do not have to leave.
The one I do not see that much is, Full Time Retirement in Mexico. There are a few but they usually go back after a medical scare or a family issue. I think it would be much easier if you moved to Mexico in your 40’s or 50’s and then retired. Working and living your entire life in one country and then moving to another and leaving all behind, sounds good but does not work out for most.
Not certain what part of Mexico you’re in, but here in the Riviera Maya area, there are thousands of retirees living here full-time. Our only home is here in Mexico. We’re all in.
Yes, the biggest mistake people make is coming to Mexico at 65. It should be at the latest 55.
That is quite a generalization. I was 68 and my husband 73 when we moved here 17 years ago. Zero regrets. My husband died two years ago after 2 years of rapidly declining health and 16 hospital stays. Medicare Advantage paid for the emergency hospital stays.
Good description and summary of the various groups!
Moved to Puerto Vallarta 30 years ago with my wife. Full time retired in Mexico!
We get up to the States now and then, but we’ve never looked back with our decision. The climate, the culture, and Mexico’s marvelous people (as a rule) make living here easy!
“However, according to the OECD’s most recent data, average housing costs in Mexico are significantly lower — 21% lower than in the U.S.”
This is a link to a real estate advertorial. Not only is it not a link to the OECD’s most recent data, it doesn’t even contain that data or any reference to it whatsoever.
Northern immigrants are always so excited to buy a home for $300,00, dinner for $20, and drinks for $6…you can do all that in the majority of the United States, geographically speaking.
I’m from the Midwest and wouldn’t have gone to Mexico if I had the money that these retirees have.
But that’s moot now because you need to have a very significant income to even qualify for the visas anymore, I think it’s tripled in the last 5 years or so.
So Mexico is no longer a way to simply make ends meet if you want to gain residency.
i’ve lived in La Paz in BCS for 20 years. we spent 10 yrs splitting our time between Baja and Aspen, but just too hard, so we chose Mexico full time. love the weather, the people, colors, food, travel and how safe it is. we have our RFC # so we qualify for Mexican health insurance, but prefer to use private Doctors and hospitals. i agree with a previous comment, get Medi-Vac ins. we pay $3500usd for 5 yrs for 2 of us.
i had 3 major surgeries in 2021, prostate removal, right eye removal and replacement of a MedTronic pace maker. Total cost foe everything, doctors, ambulance, 9 total days in a private hospital plus the pacemaker was $21000usd. and I had fantastic care during co-vid.
I think if you would please check you’ll see that the original source of the 799,248 figure pertains to exats not exclusively retirees.
So 1.6 million Americans had no financial plan and went to Mexico for affordability? Sad really.
Question:
Who signed up for Medicare at 64, and what parts?
Since it doesn’t carry into Mexico, did anyone just comply with mandatory Part A via Medicare website and that’s it?
Or, maybe some plain didn’t sign up for any Medicare!
To those who posted info about medical coeverage, Thanks!
I had a med evac policy for 5 years. At renewal time, I asked how long it takes to get the plane to Guadalajara. The answer made me not renew – 3 days! When I had an emergency, and still had the policy, I pondered going back to the States, and decided that I was too miserable to travel. Four hours later, I was out of surgery. I can’t imagine paying for three more days in the hospital, waiting for air med evac. My med advantage plan paid most of the costs, anyway.