Courtesy of Karl and Brenda
- Karl and Brenda moved from the US to Ecuador for a more affordable and stress-free retirement.
- They were worried about costs and financial instability in the US.
- Ecuador offers cheaper living, better healthcare, and a growing ex-pat community for retirees.
Karl was getting disillusioned with the US.
The Air Force veteran began practicing as an orthodontist in 1990 and raised three daughters in Texas. But over time he became concerned about the US financial system, even joining an advocacy group to educate voters about the ballooning national debt.
But then came 2008 and its fiscal crisis.
"Nobody had their hand slapped. The only thing that was done was to print money and bail all the big boys out," Karl, whose full name is known to Business Insider but withheld over privacy concerns, said. "I finally decided that things were not going well in the United States, and I started looking for a place, what I would call a 'bug-out' place for my children in case things didn't go well in the United States."
A year earlier, Karl's first wife had died. All of that led him to ponder retiring abroad. His goal for retirement was simply to read and write for his own education, poring over his collection of books. The places that he had been eyeing didn't have good climates for books, though, so he fired up a simple Google search: "Best weather in the world." That's how he chanced upon Cuenca, Ecuador.
At the same time, Karl had met someone: Brenda, a medical technologist who was also pondering a retirement elsewhere. In Texas, Brenda found an environment heavy with tension: "Every time I would go into a store, I get this feeling that everyone's stressed."
Brenda was also concerned about having a financially sustainable retirement, after buying a house in 2007 and then weathering the subsequent financial fallout.
Today, though, she and Karl are happily living in Ecuador, with a retirement nest egg that's only growing. It's an option that's become increasingly enticing to some older Americans, who are finding that their retirement funds go further abroad and that thriving ex-pat communities — alongside cheaper and more accessible healthcare — create a version of a comfortable retirement that the US has failed to deliver on.
"We have more in savings now than we left with, and that's living a very nice lifestyle, traveling all over the world, and not having to scrimp or save at all," Karl said. "So it is the best of all worlds. It's a wonderful, wonderful place to live."
Pros and cons of moving abroad
The decision to pack up two entire lives isn't always an easy one. Karl said that ex-pats need to adjust to a new reality: Don't expect to find the usual big box stores or even own a car.
"You can't buy everything in one place, but it's more of a European style of shopping," Karl said. Other cultural differences may prove daunting for some; Karl said it's important for people to learn at least a "passable" level of Spanish out of courtesy to the locals, and to make their experiences easier.
Indeed, moving abroad can present new logistical and cultural challenges for both movers and locals. New residents have to adapt to a new way of living, and often new systems of infrastructure, healthcare, and taxes; at the same time, locals might feel the ripple effect of wealthier ex-pats driving up prices.
But for Karl and Brenda, the pros of making the move far outweigh the cons. The healthcare in Ecuador is "wonderful" — Karl said that they can't praise the medical facilities there enough. In fact, he said that the area is becoming a medical and dental vacation spot, where Americans come for cheaper elective procedures.
Brenda has been amazed by their experience with the medical system in Ecuador. A few years back, she was in and out of the hospital for a few months, which amounted to about five trips to the emergency room and three surgeries.
"Our total bill on our food, our room, our surgery, our medicine was $25,000. It would've been $600,000 in the States," she said.
Another big change from the states: Most retirees don't own a car, Karl said. Instead, they can get around the city in a $2.50 taxi, or pay the $0.17 senior fare for an aboveground tram.
"You almost have to laugh at the savings that you can make and it's a nice, clean, safe, very efficient way to get around in town," he said.
American ex-pat communities are growing
The American retirement dream is increasingly slipping away for many older workers hoping to hang up their hats. Savings are dwindling, Social Security isn't enough to get by, and healthcare costs are racking up.
Karl and Brenda are sitting content with their nest egg. They receive Social Security, and said that they have cashed everything else out into certificate of savings deposits in Ecuador, which earn a robust return rate.
As of December 2022, just over 450,000 retired Americans were collecting Social Security in foreign countries. In Ecuador alone, there were 2,795 retirees collecting Social Security. That's up from just over 300,000 retirees collecting Social Security from abroad in 2008. Ecuador alone has seen its Social Security population grow by about 7,000 over that 14-year span.
That's a shift Karl and Brenda are seeing firsthand: Cuenca is a growing ex-pat hotspot, with ever-more retirees flocking in. Mansion Global said that the area is the "hottest current real estate market for US immigrants to Ecuador." There are around 10,000 expats in the area who bring in around $360 million to the local economy annually, per Mansion Global. Cuenca expats even have their own magazine.
And the appeal of the lifestyle is stretching beyond just retirees, according to Karl.
"There is a growing community of expats here, younger people from Europe, from all over the world that are working remotely," he said, adding: "It's not just retirees. It's open to all sorts of possibilities."
Are you an American who's retired abroad for cheaper living or better healthcare? Contact this reporter at jkaplan@businessinsider.com.