A boomer couple who retired early to Colombia explains their 'exit strategy' and how much they now pay in monthly expenses
Courtesy of John and Susan Pazera
- John and Susan Pazera moved to Colombia six years ago.
- They knew they wanted to retire early, and they saw leaving the US as the only way to do so.
- Their expenses in Colombia are low, and the affordable healthcare makes a big difference.
John and Susan Pazera knew their retirement years would look a lot different if they chose to stay in California.
As sailors, John and Susan — 68 and 64, respectively — were no strangers to travel. In 2001, the couple took a three-year sabbatical and sailed down the West Coast to Central America, where they stopped in Panama. It was a moment of inspiration.
"It started getting us to think that maybe we could retire at a younger age if we moved outside the country," John told Business Insider.
They're not the only retirees to make the leap. BI has previously spoken to a range of Americans who chose to move abroad to seek better and more affordable conditions in retirement. For many older Americans, it can solidify their financial security later in life, especially because just over half of people over 65 said they made $30,000 or less in 2022 while in the US, per the Census Bureau's Current Population Survey.
Moving to a new country can certainly present challenges, including the political atmosphere and potential language barriers. John and Susan recommended that anyone seeking to move abroad visit the place they might want to live a few times, especially when it's not tourist season and the weather is not as nice. They also suggested waiting a couple of years before purchasing any property.
"You have to adapt to that country's culture and lifestyle. You can't bring your US mentality to another country and expect everything to be the same," John said. "You have to wipe clean everything that you expect from the US that you think you're going to get from another country."
How they made the move and what life costs in Colombia
When John and Susan started planning, they first focused on boosting their savings. Then, in 2015, they sold their house and cars packed everything away in seven duffel bags and moved to Panama with their two dogs.
They ultimately decided that Panama wasn't the right fit. Having already visited some cities in Colombia, they were familiar with the lifestyle there and felt confident making it their new home.
They said that had they not moved abroad, early retirement would not have been a possibility. Instead, they both retired at 59 — Susan worked remotely for a few years. That's compared to the average retirement age of 63 for women and 65 for men in the US. Plus, they believe their quality of life after retirement is better.
"Everything was just so expensive," John said. "And we were able to afford it, but it's like, do we want to have this lifestyle until we retire? We got to figure out an exit strategy to get out quicker."
They recently purchased property outside of Medellín, Colombia, so they no longer have rent payments, but they estimate they'll owe around $137 a month in apartment insurance and property taxes. When it comes to their basic monthly expenses, they spend about $45 a month on utilities, $40 a month on cell phones, and $36 a month on internet. Healthcare costs vary each month, but they said it's typically around $300.
The couple said that moving also gave them the peace of mind of knowing that as they age, they'll have a healthcare system they can rely on for any physical ailments they might face.
"If we stay in the US, one of us gets really, really sick with some strange disease, and the insurance company says, 'Well, we don't cover that.' And then it's all out of your pocket," John said. "So all the money you saved your whole life, you have to dip into your savings for something that's not covered by the health insurance companies. But here, we know we can get sick with anything in the world, and we're going to be taken care of."
It's not free healthcare, Susan emphasized, but "it's really eye-opening" to see the quality of care she can get in Colombia for a significantly lower price than she could in the US.
Lower healthcare costs are often a key reason people might choose to leave the US. Another expat, Debra Crockett, previously told BI that she moved to Turkey after battling high health expenses in the US and found the situation to be much more affordable abroad.
John and Susan are grateful that finances are not a concern for them as they continue to live abroad in retirement. But it's more than that — they said their neighborhood is very walkable, they're able to do a range of outdoor activities like hiking and biking, and their neighborhood frequently has cultural events and activities they can participate in.
They achieved their goal of early retirement, and now they can enjoy the benefits.
"It's not easy all the time, but it's forced us to get out into the community and learn because it's complete immersion," Susan said. "And it really feels like the place we are meant to be at this point in time. "
How are you planning for retirement? Share your story with this reporter at asheffey@businessinsider.com.
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