Why More Veterans Are Choosing to Live Abroad After Service

A growing number of American veterans are making the decision to relocate overseas after their military service ends, drawn by lower costs of living, adventure, and in some cases, a desire to continue experiencing life in foreign cultures they encountered during their service.

Countries like Portugal, Costa Rica, Mexico, and Thailand have become popular destinations for American veterans seeking to stretch their retirement dollars and enjoy a different pace of life. Online communities dedicated to expat veterans have grown significantly in recent years, offering advice and support for those considering the move.

The Financial Appeal

For many veterans, the primary motivation is financial. Military retirement pay and VA disability compensation go much further in countries with lower costs of living. A veteran receiving $2,500 per month might struggle in many American cities but can live comfortably in places like Ecuador or the Philippines.

“My retirement income gives me a lifestyle here that I could never afford in the States,” said one Air Force retiree now living in Portugal. “Nice apartment, good healthcare, dining out regularly, it’s all affordable.”

Healthcare Considerations

Healthcare is often a major concern for veterans considering expatriation. While VA healthcare is generally only available within the United States, many countries offer affordable private healthcare or public systems accessible to residents.

Veterans receiving VA disability compensation continue to receive those benefits regardless of where they live. Some veterans maintain a U.S. address and return periodically for VA medical care, particularly for service-connected conditions.

Challenges to Consider

Expatriate life is not without challenges. Distance from family and friends, language barriers, navigating foreign bureaucracies, and cultural adjustment can all be difficult. Veterans considering the move are advised to spend extended time in potential destinations before committing.

Tax implications can also be complex. American citizens remain subject to U.S. income tax regardless of where they live, though various exclusions and credits may apply.

Resources for Expat Veterans

Organizations like Veterans Abroad and various country-specific veteran groups provide resources and community for those who have made the transition. The VA’s Foreign Medical Program provides limited coverage for service-connected conditions treated overseas, and the Federal Benefits Unit at U.S. embassies can assist with benefit questions.

For veterans intrigued by the idea of international retirement, thorough research and realistic planning are essential for a successful transition to life abroad.