The number of Americans collecting Social Security benefits while living abroad is rising sharply, with roughly 700,000 receiving payments as of early 2026 – a more than 20% increase over the past twelve years, according to the Social Security Administration.
Driving this trend is a combination of factors, primarily the increasing cost of living in the United States, particularly for retirees, and a desire for a different lifestyle. “The rising costs for retirees in the US are motivating people to look beyond our borders,” explained Jennifer Stevens, executive editor of International Living’s 2026 Annual Global Retirement Index. “In the better-value locales abroad, your dollars can really stretch. The savings for healthcare, in particular, are significant.”
Jeff and Joch Woodruff are among those who made the move. Six years ago, they sold their home in Sacramento, California, and relocated to northern Portugal. After an initial six-month stay in Porto, they purchased a condo near the Atlantic Ocean and established a new life. “We’ve adopted cats, made rich friendships, and have built a community,” Joch Woodruff said. The couple cited a lower cost of living, a slower pace of life, and a desire for a calmer political environment as key motivators.
The appeal of relocating isn’t solely financial. According to a recent International Living survey, over 60% of Americans indicated that the current political climate in the US has increased their interest in moving abroad. A Gallup report found that roughly one in five Americans would like to permanently relocate to another country, with those expressing lower confidence in US institutions being more inclined to consider such a move.
For the Woodruffs, the financial benefits are substantial. Joch estimates their monthly budget is now less than one-fourth of what they spent in California. Stevens highlighted healthcare costs as a major driver, noting that the high expense of out-of-pocket healthcare in the US is prompting retirees to seek more affordable options elsewhere. While Medicare coverage is not applicable abroad, Stevens emphasized the importance of evaluating the quality and cost of healthcare in potential relocation destinations.
Portugal consistently ranks high on lists of desirable retirement destinations. Live and Invest Overseas recently identified it as one of Europe’s most inviting countries for expats, citing factors like cost of living, healthcare, recreation, safety, and tax regulations. Other top-ranked locations include Boquete, Panama; Puerto Vallarta, Mexico; and Gascony, France. International Living’s 2026 Global Retirement Index named Greece as its top overall locale, citing accessible visa options, a 7% tax on foreign pension income, and a generally affordable quality of life, with a comfortable monthly living expense estimated between $2,500 and $3,200.
The most popular destinations for American retirees receiving Social Security benefits currently include Canada, Mexico, the United Kingdom, Germany, Poland, Italy, Greece, Portugal, and Spain, according to the Social Security Administration. The trend extends beyond retirees; for the first time since 1935, the number of Americans moving abroad has exceeded the number of new arrivals to the US, according to the Brookings Institution.
The US Department of State provides resources for Americans considering retirement abroad, available on Travel.State.gov. Stevens advises prospective expats to carefully consider their priorities and create a list of “nonnegotiables” and “would be nice” features when evaluating potential locations. She also recommends spending several months in a prospective location to assess its suitability and connect with local expats to learn about their experiences and costs of living.
For those planning to continue working remotely, understanding local employment laws and tax implications is crucial. Both the US and the country of residence may tax earned income, and foreign bank accounts may require disclosure to the US Treasury Department. For the 2026 tax year, the foreign earned income exclusion allows eligible Americans to exclude up to $132,900 of foreign-earned income from US taxation.
Several European countries offer financial incentives to attract foreign residents, including tax breaks and grants for home renovations. Ireland, for example, offers grants of up to 70,000 euros for refurbishing vacant properties. Portugal’s D7 Visa provides a pathway to residency for non-EU citizens with stable passive income, requiring a minimum monthly income of approximately $1,086 and a clean criminal record.
Despite potential concerns about homesickness, Joch Woodruff reports that their family has visited regularly since their move. “Nearly every day we turn to each other and say, ‘A vida é boa.’ Life is fine,” he said.
