Retire Abroad – Global Trends in Living Overseas

The decision to retire abroad is an international phenomenon.

The decision to retire abroad is not a new trend. People have been making decisions to transplant themselves for centuries. Today, as in times past, living abroad choices are driven by economic factors. In most instances, the choice to opt for overseas living or retirement destination is based on the goal of improving one’s standard of living by an expatriate.

In the 1800’s waves of European and Asian immigrants descended on the shores of North and South America in search of economic opportunity. And this flood of immigrants provided the source of labor that fueled the economic growth of the United States. That growth was a combination of cheaper labor being available for American industry. It also represented as the expansion of a consumer market as the “cheap labor” integrated into their new homeland. And of course this further fueled the growth of American industry.

Today, among the world’s retirees, it is possible to see emerging patterns in people deciding to retire abroad to maintain or raise their standards of living. Usually, movement is to retire to a nearby country whose economy is less developed and where there exists a favorable currency exchange rate. The trend for international living is not an American phenomenon alone.

Europeans from the most developed parts of Northern and Western Europe have often made Southern Europe their choice for a retirement destination. Not only were the countries along the Mediterranean more affordable, but they provided a much milder climate as well.

Americans, on the other hand, have favored Latin America as one of their best places to retire abroad. It is similar to the phenomenon in Europe. Central America is close to home, has a lower cost of living, and the dollar has tended to remain strong in those countries. Today, many American expatriates have chosen countries such as Mexico, Costa Rica and Panama for living overseas.

In Asia, the pattern also repeats itself among the most developed Asian nations. In countries such as Japan, South Korea, and Singapore the decision to retire abroad is gaining in popularity. Popular retirement destinations have been for international living in the Southeast Asian countries such as Thailand, Malaysia, and the Philippines. A recent survey indicated that over half of Singapore’s residents were now considering a retirement overseas.

This trend is the exact opposite of the goal in many developing nations. In these countries, many residents desire to immigrate to a more developed nation such as Japan, the United States, or a Western European country. In this case, the underlying reason is also economic. But instead of seeking out a lower cost of living, immigrants from developing nations are looking for economic opportunity – a chance to earn a higher wage, find economic mobility, and in many instances earn surplus income to support a family back home.

My grandparents immigrated to the United States in early 1900’s. They left Japan during bad economic times to find employment abroad. My grandfather found employment on a sugar plantation in Hawaii and was able to build his American dream. My father was the first in his family to obtain a college education and went on to have a successful career in natural resource management. Those first two generations benefited from the economic opportunities that America provided and made their own little contributions to America’s emergence as a superpower.

In two days, I will be reversing the migration patterns of my grandfather with my decision to retire abroad. I will be settling in Southeast Asia (not that far from Hawaii – my current home). It is also driven in part by economic factors. But, it also represents a decision to move to a part of the world where I believe the greatest changes are taking place – part of the curiosity that I developed in my academic career.

The decision to retire abroad is likely to gain momentum in the developed countries and I anticipate have an international community of retirees eventually joining me in my journey through Asia. It’s nice to be caught up in the ebb and flow of people moving from place to place. In many respects, I find this group of people made of the same cut of cloth that made up America’s pioneers and the hope of a new world without borders – whether you are a retiree living abroad, or an immigrant trying to get into the United States in search of a better life.

Perhaps it’s time for nations to recognize this natural ebb and flow of people as beneficial to their economies and a more peaceful world.

(Photo by Veralu)

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