This article takes a look at the 25 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.
A starting point for potential retirees is to assess how far they stand from retirement, and how much they need to save enough for a secure one. According to The Charles Schwab Corporation (NYSE:SCHW), Americans need at least $1.8 million to live a comfortable lifestyle during their golden years. Considering their longer lifespans and higher healthcare expenditure over the years, they must look for a viable country to live in that can help them live a comfortable life. We have all looked at lists that talk about the best countries for retirees, but what about the worst? Let’s find out.
Pixabay/Public Domain
Methodology
To compile the list of the 25 worst countries to retire in for Americans, we have used the Expat Insider Survey 2023 and the Natixis Retirement Index 2023. These indices have assessed up to 54 advanced economies, members of the Organization for Economic Cooperation and Development (OECD), and the BRIC countries (Brazil, Russia, India, and China). The factors that they have been assessed on include health, well-being, ease of living, finances in retirement, quality of life, leisure options, travel and transit, safety and security, and environment and climate. Next, we picked out the bottom-most countries from both the indices and averaged their rankings to generate an Insider Monkey score. Countries have been ranked in ascending order from the lowest to the highest scores.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
Here are the worst countries to retire in for Americans:
25. Canada
Insider Monkey Score: 19.5
Expat Insider Survey Rank: 27th
Natixis Retirement Index Rank: 12th
High taxes, a rapidly aging population, environmental factors such as lack of biodiversity, and a drop in financial well-being and happiness make Canada one of the worst countries to retire in for Americans. According to the Expat Insider survey, respondents struggle with housing costs and general day-to-day living expenses as well. 49% of respondents deem the cost of living as “too high”.
24. Ireland
Insider Monkey Score: 21.5
Expat Insider Survey Rank: 39th
Natixis Retirement Index Rank: 4th
Deemed as one of the most expensive countries in Europe to retire to, Ireland is another one of the worst countries to retire in for Americans. The major aspects highlighted by the Expat Insider Survey that have made it land in the bottom 10 are poor leisure options, sub-par performance in the Travel and Transit category, and most importantly, it comes dead last in the healthcare category. Specifically, the survey notes that 47% of expats are generally unhappy with the high costs of healthcare, poor availability (45%), and low quality (42%).
23. USA
Insider Monkey Score: 25
Expat Insider Survey Rank: 30th
Natixis Retirement Index Rank: 20th
Unsurprisingly for many retired individuals in the country, the USA itself is one of the worst countries to retire in for Americans. Inflation, lack of retirement savings, and the prospect of depleted social security funds have all been keeping retirees on their toes. While the country may be great in terms of career prospects, the quality of life is its weak point. Respondents note the country doesn’t have affordable public transportation, it’s difficult to move around on foot, and it’s best not to get sick since healthcare is unaffordable for many.
22. Denmark
Insider Monkey Score: 25.5
Expat Insider Survey Rank: 41st
Natixis Retirement Index Rank: 10th
One of the worst countries for making friends is Denmark, which means Americans, and expats in general, are likely to feel isolated and alone if they decide to move there. Housing is hard to find, and the cost of living is also expensive. 56% of expats are unhappy with the living expenses in the country.
21. Austria
Insider Monkey Score: 26.5
Expat Insider Survey Rank: 42nd
Natixis Retirement Index Rank: 11th
Austria promises expats a good quality of life, features a good health sub-index, and even performs well in material well-being. However, similar to Denmark, the country isn’t exactly a friendly place to settle in. According to an Expat Insider survey, 24% of expats completely disagree that the locals are friendly there. The country also performs poorly in the Expats Essential Index for factors such as housing, digital life, and language.
20. New Zealand
Insider Monkey Score: 26.5
Expat Insider Survey Rank: 45th
Natixis Retirement Index Rank: 8th
New Zealand slipped two places in the Natixis Retirement Index and already ranks poorly in the Expat Insider Survey. The survey notes its ranking slipping in the Finances in Retirement sub-index, while it performs well in areas such as quality of life (82%) and material well-being (70%). Expat Insider notes that the country doesn’t perform well in the Personal Finances category, and expats state their disposable income isn’t sufficient to live a comfortable life.
19. Norway
Insider Monkey Score: 26.5
Expat Insider Survey Rank: 52nd
Natixis Retirement Index Rank: 4th
One of the worst-rated countries by the Expat Insider survey is Norway. 62% of expats rate the local cost of living negatively, while 37% of expats state that their disposable income is insufficient to lead a comfortable life. The question remains, why does the country lead the Natixis Retirement survey? Probably because of its top performance in the health and quality of life sub-categories.
18. Estonia
Insider Monkey Score: 27
Expat Insider Survey Rank: 29th
Natixis Retirement Index Rank: 25th
Estonia has had the worst inflation in Europe over the years, and expats are particularly unhappy with their financial situation in the country. In March 2023, the inflation rate was 15.6%, twice the Eurozone average. Cultural differences, language barriers, and health inequalities exist as well.
17. France
Insider Monkey Score: 28
Expat Insider Survey Rank: 33rd
Natixis Retirement Index Rank: 23rd
According to the Big Mac Index, the cost of living is 6% more expensive in France than in the USA. Expats also tend to struggle with the local language, with 59% stating that it was difficult to live in the country without speaking the language.
16. Belgium
Insider Monkey Score: 28.5
Expat Insider Survey Rank: 38th
Natixis Retirement Index Rank: 19th
Expat Insider Survey rates Belgium at number 38 out of 53 countries, whereas it comes at number 19 in the Natixis Retirement Index. The language barrier, cultural adjustment, and complex healthcare system help it rank as one of the worst countries to retire in for Americans.
15. Germany
Insider Monkey Score: 29
Expat Insider Survey Rank: 49th
Natixis Retirement Index Rank: 9th
Germany may be ranking in the top 10 in the Natixis Retirement Index, but the Expat Insider Survey ranks it in its bottom 10. From small inconveniences like having to pay in cash to bigger problems such as finding accommodation, the country isn’t exactly an easy place to retire for Americans.
14. Brazil
Insider Monkey Score: 29
Expat Insider Survey Rank: 15th
Natixis Retirement Index Rank: 43rd
Brazil is another country making it to our list of worst countries to retire in for Americans due to factors such as economic conditions and government policies. Language barriers, cultural adjustments, and bureaucratic processes are some other challenges that retirees will face.
13. Colombia
Insider Monkey Score: 29
Expat Insider Survey Rank: 17th
Natixis Retirement Index Rank: 41st
The Natixis Retirement Index ranks Colombia at 41st place out of 44 countries. The country doesn’t perform well in the health index (51%), finances in retirement (62%), and even material well-being (11%). For this reason, we can consider it as one of the worst countries to retire in for Americans.
12. United Kingdom
Insider Monkey Score: 29.5
Expat Insider Survey Rank: 43rd
Natixis Retirement Index Rank: 16th
Expats in the UK may appreciate it for its work life and business culture, but they struggle with aspects such as personal finances and quality of life. Both of these factors are important for a retiree, which is why the UK can be considered a bad choice to retire for Americans. 41% of respondents are unhappy with the local economy as well.
11. Greece
Insider Monkey Score: 30.5
Expat Insider Survey Rank: 25th
Natixis Retirement Index Rank: 36th
Greece runs a little below the middle ground in both the indexes used for our rankings. Ongoing economic issues, uncertainty, and lack of healthcare in its rural areas and quiet islands mean the country isn’t exactly one of the best countries to retire in for Americans.
10. Cyprus
Insider Monkey Score: 31
Expat Insider Survey Rank: 32nd
Natixis Retirement Index Rank: 30th
The island country of Cyprus can be considered one of the worst countries to retire to. Expat Insider states that it ranks 32nd because of its performance in areas such as quality of life (34th), leisure options (34th), safety and security (31st), and even environment and climate (31st). The Natixis Index states that it performs poorly in the Finances in Retirement Index (53%) sub-index as well as Material Well-being (56%).
9. Singapore
Insider Monkey Score: 31.5
Expat Insider Survey Rank: 37th
Natixis Retirement Index Rank: 26th
Singapore has dropped places from 10th in Expat Insider Survey 2022 to 35th place in the Expat Insider Survey 2023, a massive plunge that has thrown the country on to our list. High cost of living, aging population, strict laws and regulations, and cultural differences mean it’s not exactly an ideal country to retire to.
8. China
Insider Monkey Score: 32
Expat Insider Survey Rank: 26th
Natixis Retirement Index Rank: 38th
One of the worst countries to retire in is China. Deemed as a country with the worst human rights record, expats will find it difficult to start a life in the country. Ranking in the bottom 5 in the Expats Essential Index, expats struggle to settle in, find it hard to express themselves, and even have problems adjusting to their culture.
7. Poland
Insider Monkey Score: 33
Expat Insider Survey Rank: 35th
Natixis Retirement Index Rank: 31st
Poland ranks 31st according to the Natixis Retirement Index, while the Expat Insider Survey ranks it at 35th position. Out of 53 countries, it ranks at 34th position in terms of healthcare, 28 in leisure options, 37th in local friendliness, and 39th in finding friends.
6. Hungary
Insider Monkey Score: 33.5
Expat Insider Survey Rank: 34th
Natixis Retirement Index Rank: 33rd
Hungary isn’t exactly an ideal destination to retire to, ranking poorly in health index (56%), finances in retirement (58%), and quality of life index (61%).
5. Japan
Insider Monkey Score: 34
Expat Insider Survey Rank: 44th
Natixis Retirement Index Rank: 24th
By 2050, Japan’s old-age dependency ratio is expected to reach 80.7. The country is facing an aging population dilemma, making it one of the worst countries to retire in for Americans.
A question often asked on this subject is, can you retire in Japan as a foreigner? You can. While there is no specific retirement visa that the country is offering to expatriates, a long-stay visa can help expat retirees stay in the country
4. Malta
Insider Monkey Score: 34
Expat Insider Survey Rank: 46th
Natixis Retirement Index Rank: 22nd
In Malta, it is not quite easy to start a life as an expat. The only good thing about the country is its Mediterranean climate.
3. Italy
Insider Monkey Score: 37.5
Expat Insider Survey Rank: 47th
Natixis Retirement Index Rank: 28th
Italy’s bureaucratic processes can be challenging for retirees to navigate, potentially leading to frustrations in dealing with administrative tasks. Moreover, certain regions, especially popular tourist destinations, may have a higher cost of living, that affect the financial feasibility of retirement for some individuals. The country ranks poorly in finances in retirement sub-index (52%) and material well-being (49%).
2. India
Insider Monkey Score: 40
Expat Insider Survey Rank: 36th
Natixis Retirement Index Rank: 44th
India stands at 36th position in the Expat Insider survey whereas Natixis ranks it at 44th position, implying that the country is doing poorly in areas such as health (4%), material well-being (11%), and finances in retirement (63%), amongst others. The country also performs poorly in terms of quality of life, coming in at 52nd place.
1. Türkiye
Insider Monkey Score: 32
Expat Insider Survey Rank: 51st
Natixis Retirement Index Rank: 42nd
Turkey is the worst country to retire in for Americans because of its political and economic instability and the unreliability of the country as a retirement destination. Additionally, the language barrier, with Turkish being the official language, may pose challenges for retirees not proficient in the local language. The country also performs poorly in health (54%), finances in retirement (47%), quality of life (25%) and material well-being (28%).
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Disclosure: none. 25 Worst Countries to Retire in for Americans is originally published on Insider Monkey.
