Baby boomers are leaving America en masse to retire abroad because the US is just too expensive

When Allan Fawcett decided to retire from his career in computer science in 2011, he knew he wanted to spend at least a few years traveling, particularly in Europe. After decades in tech, he was ready, as he puts it, to give his mind a rest. “Computer programming destroyed my brain,” he says Fortune“I needed a way out.”

Little did he know, that escape would become permanent. He met his current wife, Elisabeth, shortly after he retired, and eventually took the plunge and moved to Spain with her permanently.

Fawcett, now 67 and a Spanish citizen by marriage, couldn’t be happier with his decision. Although his wife still works, he spends his days playing tennis, reading and going to the beach or cafes with expat friends in Barcelona. He and his wife are able to travel the continent and are even planning a trip to Paris for the Olympics this year.

The same lifestyle wouldn’t be possible in the U.S., Fawcett says. Housing is much more affordable, food is cheap, and wine is even cheaper. The public transportation system is a godsend; Fawcett doesn’t own a car and doesn’t need one to get around. The ability to walk is also a big plus.

“It’s good to live here,” says Fawcett, who became a resident in 2019. “You can eat outside everywhere, the weather is great. Everything is very cheap.”

Fawcett is part of a growing trend of retirees, spurred by America’s pension crisis, moving abroad rather than spending their golden years in the U.S. As of December 2022, there were more than 700,800 people receiving Social Security payments abroad, according to the most recent available data from the Social Security Administration. In 2000, that number was fewer than 400,000.

Some move abroad because they simply can’t live comfortably on a fixed retirement income in the U.S., where housing and health care costs in particular are becoming increasingly unaffordable. A significant number of retirees in the U.S. rely almost entirely on Social Security benefits to get by, which average about $1,900 per month. A growing share of older Americans live in poverty, with few, if any, Social Security benefits available.

Others always dreamed of traveling and immersing themselves in other cultures. And still others could afford to stay in the US, but realized how much more they could get for their money abroad.

‘It costs us almost nothing’

The latter is true for Susan Keenan Sweeney and her husband Joe, who moved to Hungary in 2015 (Joe was born in Hungary but moved as a child). Although Sweeney, 69, had done well in a career in banking software in the U.S. and even retired early in Florida, she was deterred by the rising cost of housing and health care.

When she and her husband visited Hungary before the move, they looked at the affordable cost of living and the slower pace of life and decided, almost “on a whim,” to relocate. They now own a house in the countryside about two hours outside of Budapest, surrounded by vineyards. Sweeney gardens and enjoys the fresh seasonal produce available at the nearby market, and makes jams and jellies at home; the couple spends their winters in Spain and travels extensively throughout Europe the rest of the year.

Sweeney also points to the extensive public transportation system as a big plus—it’s free for people 65 and older and there’s a train station at the bottom of the hill where they live—as well as the sense of security and community they feel. They save thousands a year in property taxes compared to Florida, and expat health insurance is a fraction of the cost of U.S. health insurance, she says. One of their biggest monthly expenses is their U.S. Hulu subscription, which they watch via VPN.

“I like to think I’m right on the cutting edge of where I can retire,” Sweeney says. “It costs us next to nothing to live here.”

The disadvantages of living abroad

There are drawbacks, of course. The rest of Sweeney’s family lives in the United States, so they have to plan trips to see each other. The cultural differences can be tough to navigate, at least at first, and Sweeney is still learning basic Hungarian. There’s not the same level of individual wealth in Spain as there is in the U.S., Fawcett points out; the typical salary is much lower than the six-figure jobs you can find in the States. And of course, the income tax burden is much higher.

Sweeney and Fawcett would not have been able to save as much money as they did during their high-paying careers in the U.S. if they had spent their careers in Europe. The bulk of their investments are still in U.S. financial institutions because of the difficulty of moving them. And there is a lot more red tape and bureaucracy to navigate if you want to move abroad. Sweeney and her husband hired a lawyer to help them buy their home;

“The first few years are mostly bureaucracy,” says Fawcett. “Anything you want in Spain requires a lot of paperwork.”

But the standard of living is much better for a broader swath of the population than in the U.S., Fawcett argues. There are the little things, like fresher, cheaper groceries and concert tickets that are much more affordable and accessible. And then there are the bigger benefits, like months of paid maternity leave, cheap secondary education and affordable health care.

“It’s not the U.S.,” Sweeney says. “They do things differently here, and that’s why we’re here.”

And while universal health care systems like those in Hungary and Spain are often criticized for long wait times and the potential for substandard care compared to the U.S., both Fawcett and Sweeney are happy with the standard of care they’ve received, including surgeries and major procedures like colonoscopies. One downside is that many providers don’t necessarily speak English; Sweeney says that if something major were to happen, they would consider flying back to the U.S. for care because of the language barrier.

“If you walk in here as an American and go to a doctor’s office, I have to pick you up off the floor,” Sweeney says of the culture shock. “There’s no insurance business. It’s walk in, go to the doctor, and leave.”

Mindy Yu, director of investing at Betterment, cautions people considering retiring abroad to take the time to plan for the significant financial, legal and logistical pitfalls.

“It’s crucial to avoid viewing retiring abroad as the cheaper option and instead start saving as early as possible, while diversifying your portfolio to avoid risk,” Yu says. “It’s crucial to consult a tax advisor with international expertise, as living abroad can also bring new tax obligations, both in the U.S. and in your new country of residence.”

Fawcett plans to remain in Spain with his wife, largely because she is a caregiver for her 91-year-old mother and raised her children in the area. Sweeney, too, says she and her husband are in Hungary for the long haul, though they may eventually move from the vineyards to Budapest.

“I would tell anyone who’s going to do it to take a vacation, rent a house, and look around. You’ll go places you never dreamed of,” Sweeney says. “If you’re retired and you’ve got a few months, what’s the big deal?”

This story originally appeared on Fortune.com