Thinking Beyond Your ZIP Code: Why More Americans Are Retiring Elsewhere

Portugal just made headlines for being ranked the #1 place to retire in Europe in 2025, praised for its affordability, healthcare, and sunny lifestyle. While not everyone will pack up for Lisbon or the Algarve, the bigger takeaway is this: more Americans are rethinking where they’ll spend their retirement years—whether that’s across the ocean or just across state lines.

The New Retirement Math

Retirement planning isn’t just about how much you’ve saved—it’s also about where you plan to spend it.

• Out-of-state moves: Places like Florida, North Carolina, and Arizona offer lower housing costs, no state income tax (in some cases), and warmer weather.

• International moves: Countries like Portugal, Costa Rica, Mexico, and Spain continue to attract retirees with significantly lower costs of living, quality healthcare, and vibrant communities.

• Hybrid approach: Some retirees keep a U.S. base and spend part of the year abroad, taking advantage of “geographic arbitrage,” getting more out of each dollar by living in lower-cost locations.

  
  

Local Real Estate Trends

In the past few months, I’ve spoken with several homeowners who are preparing to sell in New Jersey with the goal of funding their move elsewhere.For some, it’s about maximizing the equity they’ve built—selling in a high-value market here and buying (or renting) somewhere their dollars stretch further.This can mean:

• Selling a long-held property at today’s high market prices.

• Buying outright in a lower-cost market, eliminating a mortgage.

• Redirecting the leftover equity into investments, travel, or other lifestyle goals.

  
  

FIRE Movement Meets Retirement Abroad

The FIRE (Financial Independence, Retire Early) movement isn’t just for millennials. Many nearing retirement age are embracing the same mindset:

• Reduce expenses.

• Increase savings.

• Move somewhere with a lower cost of living to speed up your financial freedom timeline.

• For some, this means retiring five to ten years earlier than originally planned.

  
  

Financial Tip of the Month: Automate to Accelerate

If retiring early or relocating is your goal, automation can be your best friend.

• Automated contributions: Schedule recurring transfers to retirement accounts and taxable investment accounts.

• Automatic escalation: Increase contributions by 1–2% annually to grow savings without feeling the pinch.

• Direct reinvestment: Set dividends and interest to reinvest automatically, compounding your growth.

  
  

Even if you end up in Portugal, Florida, or right here in New Jersey, building your retirement fund before you move is what makes the move possible.

Bottom line: Retirement doesn’t have to mean staying put. Sometimes, a change in scenery is also a change in financial freedom. If you’re thinking about making a move, whether across the state or across the world, now’s the time to start planning both your real estate strategy and your financial runway.

If you're curious about more personal finance tips and news, let me know!! I'm excited to include more of these ideas in my newsletters!