BattenKill Canoe

Retirement used to mean that your best days were behind you.  The word itself conjures up images of senior citizens gathering for breakfast every morning at the same local cafe or meeting up for their weekly game of bridge.

Retirees were those who had resigned themselves to their fixed income and holed up at home to live out the rest of their days in peace.  The more well-to-do might spend a month or an entire season in Florida in a mobile home park, or maybe even a condominium.  But most just counted down the days until they got put in a home and lost their last final shred of dignity.

Those days are over.

Today’s retirees are not content to waste away playing checkers and reading their AARP magazine.  They’re adventuresome, fearless, and all the more vivacious because of the gusto with which they’re approaching their retirement years.

For many, retirement means something very different these days than it did even a decade ago.  Those uneventful, sedentary lifestyles are being replaced with travel, exploration, and sometimes even a new start in another context.

Retirees are traveling and moving overseas more than ever before.

Travel among retirees is at an all-time high.  The travel industry has recognized this demographic as a vital segment of their customer base and has begun catering to the mature traveler.

And the travel itself even looks different.  Today’s retirees are less likely to spend their vacation on a crowded tour bus being shuttled from one city to the next.  Many are taking a more DIY approach, planning their own adventures and steering clear of the more cookie-cutter travel experiences.

Since much of the current retired generation has traveled extensively during their working years, many are now targeting locations that are a little farther off the beaten path.  If they traveled to a well-known European city years ago, they may decide to visit its lesser-traveled neighbor when they return.  Multi-generational travel has also grown in popularity, as many retirees want to see the world with their children and grandchildren in tow.

In addition to their short-term travel, more Americans than ever are retiring overseas.  It’s unclear just how many, but a reported 350,000 Americans receive their Social Security checks in countries outside the U.S.  And in a recent study by Travel Market Report, an estimated 3.3 million baby boomers plan to retire abroad.

So what’s causing this trend among current retirees?

Maybe they’re born with it.

Americans who are currently entering retirement age are part of the “baby boom” generation, which includes those born between the years of 1946 (following the end of World War II) and 1964, when more babies were born than in any previous period in history.

While there are a number of suggestions as to why this boom occurred, many speculate that it was the result of a spirit of anticipation of future comfort and prosperity that led postwar families to want to have more children. Young couples in those days desired something better than their Depression-era parents had, and they wanted their children to have an even better life than they themselves planned to enjoy.

No doubt baby boomers came into this world with an inborn sense of optimism and an inherent drive to surpass all expectations. And this characteristic is evident in their travel and retirement decisions. Today’s retirees have a spirit that is not afraid.  

Could it be a culturally-driven thirst for adventure?

In today’s world, it seems like everyone has a “bucket list.”  A mental inventory, or maybe even one they’ve put down on paper, of all the things they want to do before their time is up.  Add to this the fact that nearly every prime time network has a whole lineup of reality television shows set in remote destinations and featuring a slew of death-defying challenges and adventures.

There are travel magazines, travel-themed TV shows, and even entire networks tailored to those who have a desire to see the world and experience other cultures.  As a result, retiring baby boomers are more aware than ever of the options that are available to satisfy their wanderlust.

Cross-country RV trips to the Grand Canyon are being replaced with 14-day cruises to Grand Cayman.  And instead of weekend trips to Florida with the family, they’re heading to Peru to hike Machu Picchu with their kids and grandkids. And they’re hanging in there with the spryest of them.

Maybe it’s the calm and contentment.

As people age, studies show that their enjoyment comes less and less from the anticipation of some future event and more so from relishing the here and now. And many retirees feel like traveling to or living in another country can greatly affect their enjoyment of their current state.

For many, it means spending time outdoors and enjoying the serenity and peacefulness that nature has to offer.  This may be why so many of today’s retirees choose to visit or relocate to areas with milder climates and undisturbed natural habitats.

Spending time in another location better enables retirees to avoid common stressors, like political dissatisfaction or financial worries.  The absence of stress has been proven to improve health and decrease one’s risk of illness, particularly heart disease.

For this reason, many retirees are embracing the possibility of enjoying a stress-free lifestyle in those all-important latter years.  Many are finding this decision to be hugely beneficial.

Or is a lack of money prompting baby boomers to retire overseas?

Still another possible reason today’s retirees may be choosing to travel and especially live overseas is the fact that they can enjoy a much lower cost of living, without sacrificing any of their quality of life.

Living in the States these days is not cheap, especially for those in retirement.  The recent global financial crisis did quite a number on the pocketbooks of many American families.  Many suffered severe hits to their 401k’s (an average of 18 years worth of gains).  Home prices also fell 23% from 2007 to 2010.

Not everything is down, though.  On the contrary, taxes have never been higher.  And the average 65-year-old couple will pay $240,000 in out-of-pocket medical expenses over the rest of their lifetime, versus $160,000 a decade ago.

It’s no wonder that, in a recent Retirement Confidence Survey conducted by the Employee Benefit Research Institute, only 14% of employees were “very confident” they’d have enough money to live comfortably in retirement.

As many retirees are learning, this comfortable retirement can much more easily be found overseas.  Housing costs are much lower than the U.S. average.  Good health care, often as good as can be found in the U.S., can be obtained for a fraction of the cost.

Expats can often enjoy a pedestrian lifestyle, buy fresh produce from local markets, and enjoy excellent meals at local restaurants for much less than they would pay in the U.S. for the same cuisine.  Add to that the abundance of inexpensive activities they can participate in, especially in more-established villages or those with a large tourist or expat presence.

And with today’s technology it’s even easier and cheaper than ever to stay connected to family back home.  So, there’s one less barrier to breaking free and spending their retirement the way they’ve always dreamed.

No matter the reason, they don’t seem to be slowing down.

Whatever it is that’s prompting them, baby boomers are changing the face of retirement as we know it.  The travel industry is certainly taking notice, as many of the biggest names in the industry have launched campaigns tailored towards retirees.

Interestingly, quite a few foreign countries are also jumping on the bandwagon.  Between foreigner-friendly tax laws and special discounts for retirees, many nations are welcoming both tourists and expats with open arms.  See for yourself some examples of what these countries are doing.  A little research can help you decide if overseas retirement could be right for you.