Worried they won't be able to afford a decent standard of living in retirement, many Americans are moving to cheaper places -- increasingly overseas. Travel Market Report, an industry publication, found in 2012 that 3.3 million baby boomers planned to retire abroad.
They've been joined by couples and families that are looking for a simpler way of life. "For them, a big part of the adventure is to downsize their lifestyle," says Kathleen Peddicord, the founder of the publication Live and Invest Overseas.
Living as a legal resident in another country does not require that you give up your U.S. citizenship or Social Security checks, but Medicare won't cover you overseas, so purchasing health insurance is important for expats, she notes.
This South American country is a favorite of Americans, offering the dramatic landscapes of the Andes Mountains, a mild climate and relaxed pace. "Balancing cost of living and quality of life, I think you get the biggest bang for the buck," says Peddicord.
Cuenca, known for cultural attractions including its symphony and lively cafés, is a popular retirement destination. "Lots of Americans have retired here, and there's an established community," she says.
Rent for a one-bedroom apartment in an Ecuadorian city ranges from $250 to $550 a month, with utilities adding $30 and an Internet plan an additional $50 or so, according to Numbeo, a cost-of-living database. Groceries cost about 45% of what you would pay in New York City. International Living magazine reports that relatively inexpensive, high-quality health insurance is available.
The downside of living here? You may struggle if you don't speak Spanish, and in some urban areas, crime can be a problem.
