Costs drive US retirement migration to Latin America

Subject

The growth of Latin America as a destination for foreign retirees.

Significance

Several Latin American countries offer incentives to encourage foreigners -- particularly from the United States -- to retire there. While this is still a relatively small-scale phenomenon, it has been growing over recent years and has a significant economic impact in areas where retirees are concentrated.

Impacts

• Latin American countries offer increasingly generous incentives to encourage retirees to settle there.
• Any increase in political instability in destination countries would stem the flow of retirees quickly and dramatically.
• Cultural and language barriers will be a major deterrent despite the growth of retirement communities.