Why The U.S. Cost Structure No Longer Works… And What to Do About it

Why The U.S. Cost Structure No Longer Works… And What to Do About it
Rising costs at home are pushing retirees to look abroad.|©iStock/SolStock

I was poking around some data the other day and came across this number: $4,818.

That’s per month, as in the average monthly cost of retiring in the United States today, according to recent estimates.

Math that out a tad and you see that it takes nearly $58,000 a year… just to exist in America.

Now, if you’re like me, you might’ve grown up believing that retirement was supposed to be a time of peace — a reward, of sorts. A third act to finally focus on just you and your dreams and wants.

Not a second job just to pay your health insurance and property taxes.

But that’s where we are in modern America — an economy that has simply jumped the shark in terms of costs. The truth no one in the polite financial media wants to say out loud is this: America is pricing retirees out of their own country.

They tell you how to save. How much to save. How much you haven’t saved. Why you’re not saving enough. Where to save. Where to invest.

What they don’t say is the most obvious part of the problem: The system no longer works.

It is broken.

Has been for some time.

It’s just that now, more and more retirees are finding it increasingly impossible to live the golden years they thought they were due.

Let’s run some quick, back-of-the-envelope math.

The average Social Security check in 2025 is about $2,002 per month.

So, even with a couple filing jointly and collecting $4,000 (assuming they both collect the average), they’re still $1,000 short every month just to cover typical costs. Not luxury living. Not even mildly upscale living.

Just… living.

And that doesn’t include unexpected medical expenses, travel to see the grandkids, a new roof, or a busted transmission. Or, in my case, a pricey sushi dinner treat every once in a while.

Meanwhile, the cost of housing — the single biggest line item in most retirement budgets — has gone parabolic.

The average U.S. home now costs over $420,000 — up from just under $275,000 a decade ago. Rents have followed suit, rising nearly 30% in five years. And if you’re in a desirable place like Florida or Arizona, forget it — you’re paying California prices just for hurricane prep and wildfire insurance.

Let’s add in health care.

A couple retiring at 65 today can expect to spend $315,000 out of pocket on medical expenses over the rest of their lives, according to Fidelity.

And that assumes you’re healthy.

If you’re not? Better bone up on how to set up a GoFundMe campaign.

Now toss in groceries — up 21% since 2021. Energy bills. Internet. Phone plans. Gas. Car insurance.

It all stacks up.

What’s happening is structural. It’s embedded in the American economic machine now. It’s the result of years of cheap-money policy, unsustainable debt, and a political class more focused on winning the news cycle than fixing the long-term math.

And the result is simple: Retirement in the U.S. no longer pencils out.

The Rational Alternative

The smart move isn’t retreat—it’s relocation.
The smart move isn’t retreat—it’s relocation.|©iStock/Starcevic

Follow the increasing number of Americans who are packing up their lives and heading overseas to more affordable lives — safer, more adventurous, and with better healthcare too.

They’re not “fleeing” America because they hate their homeland. They’re not bitter. They’re just… disappointed and pragmatic. Rational actors responding to irrational costs.

Places like Portugal, Spain, parts of Mexico, and beyond are seeing a surge of American retirees.

And for good reason.

In Portugal, you can rent a seaside one- or two-bedroom apartment for $900 a month, enjoy a world-class public health system, and eat fresh, local food at a café for the price of a Starbucks latte back home.

In Mexico, you can hire in-home medical care for a fraction of what a U.S. hospital would charge you just to walk in the door. And you have access to one of the world’s great cuisines — fresh and flavorful — at street-food prices.

Sure, there are trade-offs. The bureaucracy might drive you nuts. You might have to adjust to a different pace of life. But you gain something too — freedom.

Financial freedom. Emotional freedom. And the freedom to stop worrying every day about whether your retirement fund will survive the next Fed meeting.

I’m not saying everyone should go. Not everyone is built for living a new life overseas.

But staying behind comes at an increasingly high price.

A price measured in anxiety. In loss of control. In the slow erosion of your dignity as a consumer in a system built to fleece you in your most vulnerable years.

This isn’t just about inflation. This is about a government that’s now spending more than $1.4 trillion a year just on interest — with no credible plan to stop. That’s more than we spend on defense. Soon, it will be more than Uncle Sam spends on Social Security or Medicare/Medicaid.

That has an impact on you, though most people don’t realize it.

As America’s debt repayment costs rise, global interest in owning America’s debt wanes… which forces the Treasury Dept. to pay higher interest rates to attract enough buyers… which then flows through to mortgage rates, credit card rates, and auto loans — and drives down the value of the dollar globally… which fuels even greater inflation in your life.

And yet… you do have options.

There’s never been more opportunity to break free.

The world is full of places where your dollar stretches further than you might imagine. Where you can live well without fear that one surprise bill will knock you flat. Where the rhythm of life aligns more closely with the needs of retirees than the churn of late-stage capitalism.

You don’t have to go forever. You don’t have to renounce your passport or leave your family behind. But you do need to ask yourself a hard question: Does retiring in America make sense anymore, based on the ever-rising costs and the ever-declining social unity?

I made my decision years ago. And I’ve never looked back.

That decision wasn’t about abandoning America. It was about deciding to chase a happier, more affordable life for myself.

And if there’s one lesson in my move, it’s this: You’re the only one who cares about your life. No one else is going to choose a better life for you.

Happiness, safety, better healthcare, and a more affordable life — it’s all on you.

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