- John and Susan Pazella immigrated to Colombia six years ago.
- They wanted to retire early and thought leaving the United States was the only way to do so.
- The big difference is that in Colombia, expenses are low and healthcare is affordable.
John and Susan Pazzella knew their retirement years would be very different if they chose to stay in California.
Sailors John and Susan, 68 and 64, respectively, were no strangers to traveling. In 2001, the couple took a three-year sabbatical, sailing from the West Coast to Central America, with a stop in Panama. It was a moment of inspiration.
“I started to think that if I moved abroad, maybe I could retire at a younger age,” John told Business Insider.
They aren't the only ones to have left their jobs and made the leap. BI has spoken to a variety of Americans who have chosen to move abroad in search of better, more affordable conditions for retirement. For many older Americans, moving abroad can solidify their financial security in retirement, as more than half of people aged 65 and older report earning less than $30,000 while in the U.S. in 2022, according to the Census Bureau's latest population survey.
Moving to a new country inevitably brings with it a variety of challenges, including the political situation, language barriers, etc. John and Susan recommend that people considering moving abroad visit the place they want to live in several times, especially outside of tourist season and when the weather is not so good. They also recommend waiting a few years before buying a property.
“You have to adapt to the culture and the way of life. You can't just take your American mentality and go to another country and expect everything to be the same,” John said. “You have to wipe away all of your expectations of other countries from the United States.”
How I moved and the cost of living in Colombia
When John and Susan began making their plan, they focused first on building up their savings. So in 2015, they sold their house and car, packed everything into seven duffel bags, and moved to Panama with their two dogs.
In the end, they decided that Panama wasn't the right place for them – they had already visited several cities in Colombia, were familiar with the lifestyle there, and were confident about making it their new home.
They say that if they hadn't moved abroad, early retirement would not have been possible. But they both retired at age 59, and Susan had been working remotely for several years. That's significantly higher than the average retirement age in the U.S., which is 63 for women and 65 for men. Plus, they think their quality of life will be better after they retire.
“Everything was just so expensive,” John said, “and we could afford it, but should we continue to live like this until we retire? We need to come up with an exit strategy to get out of here quickly.”
They recently purchased a property outside of Medellin, Colombia, so they no longer pay rent, but estimate they pay about $137 per month in insurance and property taxes on the apartment. Basic monthly expenses include utilities at about $45 per month, cell phone at about $40 per month, and internet at about $36 per month. Medical expenses vary from month to month, but are usually around $300.
The couple said moving also gave them peace of mind knowing they had a health care system they could rely on if they grew older or developed physical illnesses.
“In America, if one of us gets seriously ill with some strange disease, the insurance company says, 'That's not covered,' so we have to pay the full cost ourselves,” John says. “So we have to spend all the money we've saved up over our whole life on things that health insurance doesn't cover. But here, no matter what illness we get, we'll be able to get proper treatment.”
Susan emphasized that while it is not free care, it has been “really eye-opening” to see the quality medical care available in Colombia for a price that is significantly lower than in the United States.
Affordable medical costs are often a major reason people choose to leave the U.S. Another expat, Debra Crockett, previously told BI that she moved to Turkey after being plagued by high medical costs in the U.S., only to find the situation far more affordable abroad.
As they continue to live abroad in retirement, John and Susan are grateful for the freedom to worry financially. But that's not all: They say the neighborhood is very walkable, offers a variety of outdoor activities like hiking and biking, and there are frequent cultural events and activities to participate in.
They achieved their goal of early retirement and are now reaping the benefits.
“It's not always easy, but it's total immersion and it forces you to go out and learn in the community,” Susan said. “And I really feel like right now this is where we're meant to be.”
What are your retirement plans? Share your story with this reporter. Ashfee.
