Retirement Redefined: Americans Seek New Horizons, At Home and Abroad
For Debra Taylor, the past year has been a period of profound transition, marked by a divorce, the onset of retirement, and a bold decision to relocate from Southern California to Portugal with her youngest daughter. Her journey encapsulates the complex, often deeply personal, considerations facing a growing number of Americans as they plan their post-career lives.
Debra Taylor’s Path to Portugal
Taylor’s decision to seek a new home outside the U.S. was meticulous. She systematically narrowed her choices, evaluating potential countries based on critical factors like tax burdens, immediately ruling out Spain due to its wealth taxes. Climate was another key criterion, leading her to bypass warmer locales such as Costa Rica. Ultimately, the ease of travel within Europe, a region she cherishes, sealed Portugal’s appeal. After a scouting trip with the relocation company Expatsi, she found her ideal city: Aveiro, a captivating west coast city renowned for its picturesque canals, earning it the moniker “the Venice of Portugal.”
The move, slated for late September, is now a cascade of logistical steps. Taylor has secured a year-long apartment lease in Aveiro, a prerequisite for her residency application. She engaged Viv Europe to navigate the intricate Portuguese bureaucracy and paperwork, completed the mandatory FBI background check, and has an upcoming appointment to finalize her visa application.
A significant impetus for Taylor’s international move came from her youngest child. “After our current president was elected, my 18-year-old transgender daughter came to me and said, ‘I want to get out of this country ASAP,’” Taylor recalled, a sentiment she readily embraced. Her oldest daughter, 20, will remain in the U.S. to complete her college education. Taylor views this move not as a final destination but as a strategic base: “None of this means I have to live there forever. I’ll use this as my jumping-off point to do more deeper dives, explore the rest of the region.”
The Evolving Landscape of Retirement Relocation
Taylor’s story is part of a larger trend. While the number of retirees who relocate fluctuates with economic and political currents, data from the U.S. Census Bureau indicates that more than 3 million Americans aged 65 and older moved within the U.S. in the five years leading up to the coronavirus pandemic. Moving abroad is also gaining traction, with U.S. politics now cited as the primary driver for international relocation among clients of Expatsi, according to co-founder Jen Barnett. However, Barnett notes a practical challenge: many desirable, English-speaking countries prefer to attract laborers rather than solely retirees, irrespective of their wealth.
For those considering “aging in place” within their existing communities, significant hurdles persist. Rodney Harrell, Vice President at AARP, who specializes in housing and livable communities, highlights rising living costs—including rents, mortgages, and home modification expenses—as well as a critical lack of community support services, such as adequate healthcare, reliable utilities, and safe environments. “One of the biggest challenges that we have is making sure that we take the future us into account, and not just look at our needs today,” Harrell emphasizes, urging retirees to consider their evolving health and mobility needs.
This forward-thinking approach is more crucial than ever as the U.S. undergoes a profound demographic shift. By 2034, for the first time in U.S. history, there will be more people over the age of 65 than under 18, a “gray bubble” that demands robust planning for senior-friendly infrastructure and services.
Beyond Sun and Grandchildren: A Holistic Blueprint
When contemplating relocation, experts advise setting priorities that extend far beyond climate preferences or proximity to grandchildren. Harrell suggests a comprehensive evaluation that includes desired community characteristics, such as the presence of a university town, specific religious institutions, or the social dynamics of neighbors. He underscores the importance of “social connection,” an often-overlooked yet vital component of well-being in retirement. The AARP’s “livability index” serves as an invaluable resource, scoring neighborhoods and communities across the U.S. on amenities and services crucial for older adults, easily searchable by address, city, state, or ZIP code. Harrell cautions, “Every place has trade-offs,” reinforcing that the goal is the “best possible outcome,” not an elusive perfection.
For those prioritizing proximity to family, retirement transition planner Elizabeth Zelinka Parsons advises open communication with adult children to establish clear expectations regarding involvement, especially in areas like childcare. She also suggests confirming the stability of their own living arrangements. Casey and Dave Bowers, who recently moved to Ericeira, Portugal, northwest of Lisbon, attest to the joys of their new coastal home, yet acknowledge the profound challenge of being geographically distant from their three adult children and growing number of grandchildren.
The “Lifestyle Audit” and Strategic Planning
Wealth manager Chad Harmer, who has guided dozens of retirees through relocations ranging from Ontario, Canada, to Arizona, champions a proactive approach he calls the “lifestyle audit.” He encourages clients to “write a perfect Thursday five years from now,” detailing everything from their walking routes to coffee meet-ups and the drive time to visit grandchildren. This exercise, he notes, “surfaces climate preferences, social networks, volunteer hobbies and healthcare priorities long before we argue over property tax millage rates.”
Harmer also stresses the importance of budgeting for “hidden inflators,” such as escalated insurance premiums in disaster-prone regions or the cost of frequent flights to maintain family ties. Additionally, he advises considering less obvious environmental factors, like pollen levels, that could impact daily life.
Elizabeth Zelinka Parsons, author of “Encore: A High Achiever’s Guide to Thriving in Retirement,” strongly advocates for trying a short-term rental in a prospective location before committing to a permanent move. “It’s tempting to retire where you vacation, but that may not be the greatest idea,” she warns.
Harmer’s practical rule of thumb for successful relocation is concise: “When 80% of your desired daily routine is achievable in a new location for at least 80% of the year, you’re in the right ZIP code. Anything less and you’re probably chasing an Instagram fantasy rather than a retirement reality.” Ultimately, whether moving across states or continents, successful retirement relocation hinges on a thoughtful, comprehensive strategy that prioritizes not just financial viability, but also lifestyle, community, and future well-being.
