25 Worst Countries to Retire in for Americans

Ghazal Ahmed
10 min read

This article takes a look at the 25 worst countries to retire in for Americans. If you wish to skip our detailed analysis of navigating retirement realities, you may go to 10 Worst Countries to Retire in for Americans.

Navigating Retirement Realities

Retirement security has been improving for the first time in a decade. The 2023 Natixis Global Retirement Index recorded nearly all countries having improved scores in the year 2023. Inflation has also been declining this past year, and it is expected to recede even further in the year 2024. Despite these improvements, four out of ten working individuals lament having their retirement dreams killed because of inflation. Higher prices, coupled with the pressure of longer lives and potentially reduced retirement benefits, thwart the realization of the ultimate retirement dream for individuals around the world.

Over the past year, inflation in the US reduced by more than half to 3% in June 2023. Moreover, all US regions ended 2023 on a good note with inflation below 4%. The highest inflation recorded was in Pacific coastal areas at 3.8%, notes the Bureau of Labor Statistics. Euro Monitor International further states that under the baseline scenario, global inflation is predicted to be standing at 4.9% in 2024, down from 6.9% in 2023. Regardless of the improving global situation, potential retirees worldwide are still concerned about how the price hikes are going to affect their retirement plans in the future, and that too, rightly so.

According to a Bank of America Corporation (NYSE:BAC) survey, the number of participants taking hardship withdrawals from their 401(k) increased 13% in Q3 2023 from the previous quarter.

"In looking at our data across 401(k) plans, economic hardships continue to be a factor."

-Lisa Margeson, managing director, Retirement Research and Insights Group at Bank of America Corporation (NYSE:BAC).

This implies that despite inflationary improvements, retirees are still struggling to make their way through their so-called golden period. According to the Organization for Economic Co-operation and Development, about 23% of Americans aged 65 and above are living in poverty, one of the highest shares among developed nations. Even worse, the Social Security Administration is falling short of its goal of managing to achieve a secure retirement for Americans.

This is because these funds are likely to be depleted by 2033. So where can Americans flock to, considering their own country has been failing them at the most fragile period of their lives? Canada is one country that most Americans are retiring to over the years. According to our research on the most popular overseas retirement destinations for Americans, over 71,376 retired workers received their social security checks in this country, followed by Japan. However, these countries aren’t necessarily the “best” ones to retire to. In contrast, Mexico, Panama, and Spain are some of the best places to retire around the world. It must be noted here that best and worst are subjective terms, and which country is “best” or “worst” may depend on numerous factors such as cost of living, retirement savings, and other individual preferences.

Recommended Stories