Bacalar, Mexico
We’ve all heard of the ongoing onslaught of baby boomer retirees in the U.S. It’s real. Think about this from the Pew Foundation: “Starting on January 1, 2011, the oldest members of the Baby Boom generation celebrated their 65th birthday and for every day after for the next 19 years, 10,000 Baby Boomers will reach age 65.”
Let that sink in. Today, 10,000 people reached the age of 65 and that will continue for the next 14 years. Yet almost one-third of all workers have no savings at all.Those who do save don’t have much. Median household retirement savings for people aged 55 to 64 in 2013 amounted to $14,500.
The sobering reality is that many retirees face an uncertain and economically challenged retirement.
There are warning voices out there, for instance in this Bloomberg article: “The U.S. retirement landscape is starting to look like a Charles Dickens novel.”
You would think this issue would be front and center in the 2016 political campaign. The debate should be about how many low-income senior housing facilities will be built and how to expand Social Security. But we know that isn’t happening.
We seem to have our collective heads in the sand. In the meantime retirees are searching the planet for places to live that will allow them a decent standard of living. The expat movement is not just about economics, because people of all ages and incomes have chosen the expat lifestyle. But hard realities cause people trying to stretch limited retirement income to look at places around the world for an affordable and rewarding retirement.
One of the most popular is Mexico. The largest contingent of U.S. retirees abroad is already there. Our State Department estimates that one million U.S. citizens live in Mexico. That number is growing fast. For retirees it makes a lot sense. There are several things about Mexico that make it a good fit including the climate, low cost of living, laid-back lifestyle, friendly and warm people, and not to be overlooked, the close proximity to the United States — basically a long car ride or short plane flight. Health care is considered affordable and good. There are reasons why a million or so U.S. citizens call Mexico home.
We have traveled extensively in Mexico, mostly by bus but also car, as we looked for the place we might call home. It was the three months we lived in San Miguel de Allende, one of the longtime expat/retiree communities, that warmed us to the possibilities of settling down in a foreign country. After that we drove through much of the Yucatan, spent a few days in Merida, then bussed to San Cristobal, Oaxaca and then to the West Coast visiting Puerto Escondido and Huatulco. That trip covered roughly 2,200 miles.
There are several expat/retiree hotspots in Mexico. While the largest contingent of North Americans can be found in the Lake Chapala region, San Miguel, Merida, Oaxaca, Pueblo, Guadalajara, Puerto Vallarta and many others are home to significant retiree populations. Much depends on what you want because Mexico is a huge country roughly three times the size of Texas. From mountains to ocean, colonial towns to major cities, most will find a place they can call home.
Now let’s be specific about what a lower cost of living is. Of course it varies, you can read this article on the AARP website: “According to one recent survey, almost half of U.S. expats on the Pacific Coast report living “comfortably” on less than $1,000 a month. (In PV region, $2,000 a month is more like it).” From our experience and research, it is possible to live comfortably on between $1,000–$3,000/month depending on location and lifestyle. At the middle-upper end, the ability to employ maid and gardening services, enjoy meals out, travel and splurge on extras increases.
Sounds great, right? Yet for many, it’s no small thing to leave home to live in another country. Certainly there are adventuresome types who lead the expat lifestyle because they embrace everything involved with living in a new culture. But as mentioned above, there are millions in the process of retiring who will take a hard look based on economics alone. They will need to find the right location, research visas, examine the logistics of moving, begin to learn a new language (the sooner the better for a richer cultural experience, although many current expats don’t know Spanish and don’t need it for everyday living).
We have found many contented expats in Mexico with remarkable stories. Those stories and others prompted us to publish At Home Abroad. These modern-day adventurers have carved out new lives and feel richer for it.
How do you know if this will work for you? The only way to begin is to do some basic research, pick a place that sounds like it might work for you and then go, rent an apartment for two-three months, or spend the winter. Instead of Florida, go to Puerto Vallarta or San Miguel. Join the local Internet groups, find Facebook groups, and connect to retirees already living abroad.
For many this sounds scary and difficult. We guarantee you will gain confidence talking to others who have already gone through the process and by seeing Mexico firsthand. Be open, talk to everyone. Just like anywhere else you will get a variety of opinions but a consensus will emerge to guide your decision.
Hopefully you can take some side trips, hop on a bus (their bus system is wonderful) and experience as much as possible. Choose three or four places that intrigue you. Do you want to be near the ocean or in a colonial town, does a particular climate suit you? These criteria will help you narrow down your choices.
Toward the end of this experiment, you will at least come to realize why so many people have chosen Mexico for their retirement. For retirees on a tight budget, the choice between living sparingly in the U.S. or comfortably in Mexico may become clear. We all deserve a comfortable retirement free from money worries. Good luck on your journey.
Betsy and Mark Blondin have traveled and lived in diverse places in Latin America and Europe during the last six years, meeting expats with wonderful stories that inspired their latest book: At Home Abroad: Today’s Expats Tell Their Stories. They have three grown children and enjoy the slow-travel lifestyle. Betsy is a freelance editor who enjoys helping others publish their work, and Mark is a data storage consultant. Join them at TodaysExpats.com or on Facebook at At Home Abroad for more about the book and its remarkable authors.