Realtor says U.S. retirees are moving to these 4 countries for a better life

U.S. retirees are fleeing high costs and divisive politics. Realtor.com explains why the top destinations work so well

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Something has shifted in the American retirement calculus. For decades, the standard script ran like this: work hard, save up, then settle into a house in Florida or Arizona and spend your days on the golf course. That script is being rewritten — fast.

The share of Americans over 55 who want to retire abroad has more than quadrupled since 1974, according to a Monmouth University Poll. Today, roughly 17% of older Americans want out. And it is not just a passing mood: A third of all Americans — around 117 million people — say they would like to settle in another country.

The motivations are layered. Expat advisers point to a society running hot — a relentless pace, political polarization, and a consumer culture that prizes accumulation over experience. Cost is the other engine driving the shift. The average retired American household spends around $5,000 a month, yet the average Social Security check delivers just over $2,000. Add in the world's most expensive private health care market — annual insurance premiums average $18,000 per person in the U.S. — and the math starts pointing toward the exit.

What was once the domain of intrepid budget travelers has gone thoroughly mainstream. Retirees are running the numbers on apartments in Lisbon, villas in Sardinia, and hillside homes in the Ecuadorian Andes and finding that the numbers work. Realtor.com surveyed the landscape of where Americans are actually going and why. Here are the destinations leading the exodus.

France: For Americans on fixed incomes

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France taxes passive income from American retirees at effectively zero — a provision baked into the bilateral tax treaty between the two countries, according to expat resource Live and Invest Overseas. That means Social Security payments and investment income can stretch considerably further in Dordogne or Brittany than they ever could back home. The country's nonprofit health system adds to the appeal: One American expat paid just 130 euros ($150) out of pocket for an MRI her sister needed. The same procedure averages $2,000 in the U.S., according to Craft Body Scan.

Italy: For tax incentives and pace of life

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For decades, Americans with Italian roots could claim citizenship by tracing their lineage back to a parent or grandparent. That door has largely shut. Italy's Constitutional Court recently upheld a 2025 reform that stripped most distant descendants of automatic eligibility, dealing a blow to millions in the U.S. and other countries with large Italian diasporas. But the main draw remains intact: Italy offers a flat 7% tax rate on foreign income for new retiree residents who settle in small towns across eight southern regions, including Sicily, Sardinia, Campania, and Puglia. One New Jersey family relocated to Sardinia in 2022 for the slower pace and sea views of Alghero, trading the New York metro's relentless energy for something quieter.

Portugal: For dreamers who want everything

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Portugal ranked first in Expatsi's 2025 survey of where Americans most want to live, and second on Live and Invest Overseas' list of the top 10 countries for Americans to retire abroad in 2026. The country offers a rare combination: world-class beaches, mountain terrain, renowned architecture, and a cost of living well below Western European norms. The Portuguese parliament recently rejected a proposal that would have doubled the residency requirement for citizenship from five to 10 years, giving prospective migrants hope of a new future. But demand has driven up real estate prices sharply, and the country cancelled its property-investment Golden Visa $V in 2023.

Cuenca, Ecuador: For value seekers

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Cuenca ranked No. 1 in South America for both safety and quality of life in a recent Numbeo survey, and a family of four can live there comfortably for around $1,861 a month, excluding rent. The city sits in the Andes at roughly 2,500 metres above sea level and has built a reputation as a hub for cost-conscious retirees from the U.S. and Europe. One couple who relocated from Las Vegas in 2009 says the city has only improved: New restaurants, fitness studios, improved infrastructure, and a major shopping mall all arrived in recent years.

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