If you're a 65-year-old today, the National Council on Aging expects you to live for another 20 years. The downside? You may also fall amongst the 95% of older adults with at least one chronic condition, such as a heart disease or even Alzheimer's, throughout this life span. With the US reaching Peak 65 this year, the situation can be rather alarming considering a large majority of these adults underestimate the healthcare costs in their retirement period, and that too, at "dangerously low" levels. In this regard, the Protected Retirement Income and Planning Study has found a whopping 84% of working Americans who don't think health is going to be a primary factor of their retirement when the time comes. Unfortunately, the results from Alliance for Lifetime Income and Cannex Financial Exchanges Ltd. report the situation to be otherwise. According to them, 38% of retired Americans ages 45 to 75 have reported health as the primary reason for retirement. Bottom line: healthcare can cost you tens of thousands of dollars in your golden years.
To quote a figure, the Employee Benefit Research Institute has estimated that an individual needs as much as $383,000 in savings to have a 90% chance of covering all of their healthcare expenses in retirement. This includes out-of-pocket costs, premiums, deductibles, and also prescriptions. According to the T. Rowe Price Group, Inc. (NASDAQ:TROW) Price Retirement Savings and Spending Study (RSS) survey, lump sum costs, however, aren't useful for planning and budgeting healthcare costs in retirement. This is because these expenses aren't incurred as lump sums anyway. Since premiums are predictable and the most variation in healthcare costs is driven by out-of-pocket costs, T. Rowe Price Group, Inc. (NASDAQ:TROW), in turn, argues that healthcare costs are, in fact, very predictable for the average retiree. The Charles Schwab Corporation (NYSE:SCHW) suggests four strategies that potential retirees can adapt to save the most for this significant expense of the retirement phase. First, The Charles Schwab Corporation (NYSE:SCHW) suggests individuals make the most of their Health Savings Accounts (HSAs). Earnings in these accounts grow tax-free, and even withdrawals and earnings are tax and penalty-free.
Next, potential retirees must also know that missing the Initial Enrollment Period for Medicare results in a permanent penalty. Should you neglect to enroll in Medicare Part B during your Initial Enrollment Period (IEP), the period covering routine outpatient medical expenses, you may face a 10% increase in your monthly Part B premiums for each 12-month interval without coverage. Other strategies like planning for long-term care, such as long-term care insurance, can also minimize risk in an individual’s financial situation, notes The Charles Schwab Corporation (NYSE:SCHW).
Meanwhile, T. Rowe Price Group, Inc. (NASDAQ:TROW) recommends breaking down these healthcare costs into three factors to help better plan them. These three factors are annual costs, types of health insurance coverage, and separation of premiums and out-of-pocket expenses. Personalizing these expenses can better help an individual to plan and prepare for them. Regardless, healthcare costs tend to be expensive for many retirees. For this reason, many individuals are now opting to move to countries with the most affordable healthcare. Our list will help you explore the best options you've got.
15 Countries With The Most Affordable Healthcare for US Retirees
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Methodology
To compile the list of countries with the most affordable healthcare for US retirees, we have used our previous list of countries with the most affordable and efficient healthcare, as well as sources such as Nasdaq, International Living, and CNBC. Next, we ranked them on factors such as their affordability in comparison to the US, the average healthcare costs, and the quality of healthcare infrastructure. Individual scores have been summed up to get an Insider Monkey Score. Places have been ranked in an ascending order from the lowest scores to the highest.
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 is the list of countries with the most affordable healthcare for US retirees:
15. Italy
Insider Monkey Score: 12
Ranking 15th on our list of countries with the most affordable healthcare is Italy. The country’s public healthcare system is called the National Health Service (NHS), or the Servizio Sanitario Nazionale (SSN). While the cost of Italy’s health insurance system is low, US retirees must be legal foreign residents to avail the same treatment as Italian citizens, having stayed for more than three months in the country. Commencing this year, international residents including pensioners with elective residence visas are required to pay a minimum of $2,161 annually under the budget law 2024, in order to access the national health service. This translates to roughly $180 per month.
14. Costa Rica
Insider Monkey Score: 15
Costa Rica is one of the cheapest places to retire to in the world. The country boasts top-tier healthcare in Latin America, evident in its impressive life expectancy of 80 years. The United Nations ranks its public health system amongst the top 20 public systems in the world. US expats are eligible for their free public health services provided that they make monthly contributions to the public health system. This contribution can be anywhere between 7-11% of their monthly income to the Caja, Costa Rica’s social security fund. Expats in the country have 30 CAJA hospitals and 250 clinics to choose from.
13. Colombia
Insider Monkey Score: 17
Colombia has an excellent healthcare system that comes at an affordable cost. As of 2023, the nation’s healthcare secured 35th position out of 191 countries, surpassing one point ahead of the United States in the global ranking. The country has globally-accredited medical centers, public hospitals, as well as bilingual doctors across the country. A US retiree with a legal residency status can enroll themselves in Entidades Promotoras de Salud (EPS), its public healthcare system, to avail health services. The average premium per month for a couple in Colombia, as reported by expats, is around $80.
12. Mexico
Insider Monkey Score: 19
Mexico ranks 12th on our list of countries with the most affordable healthcare for US retirees, and expats can expect to pay 50% less for the same treatments and procedures than their own country. As such, a US expat retiree who is a legal resident in the country can apply for either the IMSS system (Instituto Mexicano del Seguro Social), part of the social security program, or the Instituto del Salud para el Bienestar, also known as the INSABI program. The latter is designed for those having pre-existing conditions or those who aren’t able to participate in IMSS because of lack of affordability. Premiums for the IMSS depend on age and are a monthly average of $75.
11. Panama
Insider Monkey Score: 24
Many expats choose to retire to Panama, drawn not only by its beauty but also by its reputation as one of the best places to retire overseas for affordable and efficient healthcare. Expats can access both the public and private health systems in the country. The public healthcare system is almost free. However, they are recommended to buy private insurance which is not only affordable but also offers access to modern facilities, English-speaking professionals, and shorter wait times. The two largest private insurers in the country are MAPFRE and Family Medical, with coverage costs averaging $85 per month.
10. Brazil
Insider Monkey Score: 26
Brazil is another country offering the best healthcare for expats and that too, at about 20% less than what a retiree would pay in the US. The country has one of the largest healthcare markets in Latin America. Its healthcare system in Brazil is called the Sistema Unico de Saude (SUS) and provides free and universal healthcare to citizens and residents. Expats, however, often choose the private healthcare system to avoid longer wait times and avail high-end facilities.
9. Ecuador
Insider Monkey Score: 27
Ecuador already hails as one of our top countries to retire on social security in 2024, and its addition to our list of countries with the most affordable healthcare solidifies its standing as an exceptional destination. An expat retiree can expect to pay 10 to 25% less than what they would in the US. Moreover, general practitioner visits cost $25 on average, specialist runs cost $60 on average, while an hour session with a psychiatrist can cost $45 an hour (on average).
8. Spain
Insider Monkey Score: 28
Another country offering one of the best healthcare systems in the world is Spain. Over 5 million expats live in this country and benefit from its highly efficient healthcare system. The universal public healthcare system offers free healthcare to citizens, but expats can avail it's private options as well. The average price of private insurance for expats ranges between $100 to $200 per month. Retired expats can also avail a public health care scheme known as 'Convenio Especial.’ Expats can expect to pay around $65 if they are under 65 or $157 if they are above 65.
7. France
Insider Monkey Score: 29
According to William Russel, France ranks amongst the countries with free healthcare for foreigners. A retiree can avail access to this country's healthcare system after living in the country for at least three months, provided it is their place of residence for six months of the year. Nasdaq claims that an individual needs to apply for a long-stay visa for the first 12 months, and then file for permanent residency to live here and avail of the health services. Moreover, expats can also avail private facilities as well, often receiving reimbursement for a significant portion of their expenses incurred at slightly more expensive private clinics and hospitals.
6. Malaysia
Insider Monkey Score: 30
Malaysia may be known for its rich culture and diverse nature, but its healthcare system is also a strong factor determining it as a good option for retirement. Its universal healthcare system exists alongside private healthcare options. A basic private health insurance plan costs around $65 per month. However, this amount depends on an individual’s age, lifestyle choices, medical history, and overall plan that they choose.
