5 Reasons Retirees Regret Moving To Europe

Europe has long been a popular destination for American expats looking to spend their retirement somewhere new. Whether it's the climate, quality of life, or the appeal of a new adventure, many Americans have moved across the pond to live out their golden years. There are over 460,000 American retirees living abroad as of 2024, according to Social Security Administration (SSA) data, with many more considering a move.

Recent data shows a significant portion of baby boomers — all of whom are nearing or have reached retirement age — have reported kicking around the idea of moving abroad. According to a 2025 Harris Poll, more than 26% of the population surveyed are considering moving abroad, with 6% seriously contemplating it. Europe has been a hot spot for many retirees making the leap, with nearly 38% choosing to settle there, per the SSA. For some retirees who have already moved, however, the experience may not have been what it was cracked up to be. High costs of living, frequent trips to the states, complicated taxes, changes to their financial plans, and limited job opportunities are just some of the reasons that retirees living abroad in Europe may wind up regretting the decision.

The high cost of living in the U.S. is a primary reason many retirees consider making a European move. While it's true that, overall, the cost of living in Europe is typically less expensive than in many parts of the U.S., expats may not be getting the financial reprieve they were expecting. Much of the difference in living costs has to do with where in Europe they go. For instance, those settling in Portugal — considered a European country that is a great (and cheap) place to retire –- are likely to benefit from lower expenses than they incurred in the U.S.: According to crowdsourced data from Expatistan, the cost of living in Portugal is almost 40% lower than in the States.

In some major European cities, such as London, Zurich, Amsterdam, and Paris, living expenses rival those of top U.S. cities such as New York, San Francisco, and Washington, D.C.  In fact, prices across Europe have been rising faster than in the U.S. in some areas. Energy costs are especially notable, having surged in the aftermath of the COVID-19 pandemic and the war in the Ukraine. Expatistan reports the cost of a monthly public transportation ticket in the U.K. is 64% higher than in the U.S., and gas costs as much as 104%. Housing and rent prices across the European Union have also been on the rise, which has led to higher living expenses.

Moving to Europe often means leaving behind a support system of family, friends, and colleagues with whom retirees may have forged deep and meaningful bonds throughout their lives. Not having the same contact with the people they've become accustomed to seeing, especially children or grandchildren, could lead to feelings of loneliness and isolation. According to research from AXA Global Healthcare, as of June 2024, 87% of expats reported feeling isolated after leaving the country, with almost half saying the main reason was missing their family and friends. For many retirees, that may translate into more frequent trips back to the U.S. to visit loved ones. Even if they find ways to book relatively cheap flights in Europe, the cost of transatlantic travel can add up – especially for those making multiple trips a year.

Depending on where retirees are traveling to and from, the least expensive round-trip fares typically range from $800 to almost $1,000. According to NerdWallet, which analyzed data from Dollar Flight Club on the cheapest average routes between the U.S. and Europe in 2025, flights between Atlanta and London were among the least expensive at $840. Meanwhile round-trip tickets between New York and Lisbon ran closer to $950. In addition to airfare, there may be other travel-related costs as well: Rental cars often cost from $400 to $600 a week, and hotels can be even pricier. On average, a one-week stay at a hotel in the U.S. costs around $1,200, according to Budget Your Trip, though prices can be higher for top-rated hotels or when traveling during peak seasons or holidays.

For most seniors, having a strategy to minimize tax liability in retirement is essential. And while tax rules vary widely across Europe, some retirees may be surprised to find they're actually paying more than they did in the U.S. Portugal, for example, is one country in which retirees may very well end up paying more in taxes. According to data from Global Citizen Solutions, when it comes to capital gains taxes, the rate in Portugal is typically 28%, considerably higher than the 20% cap generally applied in the U.S. Pension income in Portugal, meanwhile, can incur taxes up to 48%, while the highest federal tax rate in the U.S. is only 37%. While there are ways to avoid incurring double taxes when living in Europe, it's also worth nothing that U.S. tax obligations don't necessarily go away when you move to Europe, either.

In addition to filing taxes in their new country of residence, the U.S. requires expats to continue filing federally and to pay taxes on income — including retirement income such as 401(k) and IRA withdrawals. Certain states may also continue to impose taxes until residency is fully established elsewhere. If retirees have savings or investment accounts in the country where they live, or if their assets exceed a certain amount, additional reports may also need to be filed.

Over years of planning and discussing their evolving monetary goals, many retirees form deep, long-standing relationships with their financial advisors. For many retirees, advisors become trusted members of their inner circle, offering not only financial assistance but also reassurance and guidance during major life transitions. Moving abroad, however, can disrupt that bond in ways retirees may not expect.

In some cases, continuing the relationship with an advisor in the U.S. simply isn't possible. Many American expats are losing access to or control over their U.S.-based bank and brokerage accounts due to the country's shifting financial relationship with other nations. Even if accounts remain open, U.S. advisors may be limited in the type of advice or services they can provide for clients living abroad. In some instances, the financial complexities may also be more than they can handle. For these reasons, it may serve retirees better to choose a financial advisor based in their new country — someone who can adjust their investment strategy and estate plans to their current circumstances and help them navigate two tax systems. Doing so, however, may mean ending a long-term, meaningful relationship with an advisor, which can take an emotional toll.

Despite being officially retired, many retirees look to pursue encore careers during their golden years to socialize, earn extra cash, or simply keep busy. Doing so can yield substantial benefits, from increased happiness to better physical and mental health. However, it may be tough trying to secure work after relocating to Europe. One reason is that foreigners often need a work visa or residence permit to work in a new country. These can be difficult to obtain, and can be confusing as the rules and requirements vary by country.

There may be other challenges to face as well: Retired expats are also likely to face a competitive job market — one in which businesses often prioritize locals over foreigners. They may also need to adjust their resume to fit European formatting expectations. Not only is the paper size slightly different, but the desired layouts can vary, and some countries also require a photo to be included. The bottom line is that, while there are some areas in Europe that are among the best countries to retire to outside the U.S., retirees who don't account for the many financial, emotional, and logistical aspects involved in making such a move could end up regretting the decision.