Retiring abroad has gone mainstream for Americans looking to stretch their savings and inject a little much-needed adventure into their lives. Now the challenge is deciding WHERE to base your expat plans.
Asia and Latin America are two of the top destinations for expat retirees, but choosing between them can be tough. From costs to climate and everything in between, there are many factors to weigh.
For this guide, I’m going to use Chiang Mai, Thailand and Oaxaca, Mexico as my cases. I’ve lived in both cities for over 2 years and I’m very familar with the expat communities and resources in both cities. You can use these cities as a general proxy for Asia and Latin America — but your results may vary by city in the region. If you have specific questions, leave a comment and we’ll see if we can get you some answers. (But don’t worry — both cities, both regions are absolutely great options!)
Connection to the US
For new expats—and some of us more mature folks—staying connected with family and friends back home is a crucial detail that often gets overlooked. Once the excitement and challenges of life abroad wear off, you may face the secret expat dread—loneliness.
This is one of the strongest advantages for Mexico and Latin America. In this age of Zoom and WhatsApp, living in the same time zone means that you can easily, naturally connect in real time. I send photos and messages up to my Mom in Phoenix and my family in NY regularly now, but when I lived in Thailand and Vietnam every conversation had to be planned and coordinated. I have made a lot of midnight phone calls from Asia to keep in contact with my parents, and there are few things as disconcerting or isolating as a 12-hour time difference.
Round 1 advantage: Mexico.
Costs
Both win. Asia is slightly cheaper to live, but Mexico is cheaper to travel to. Hopefully, the Peso will return to a reasonable level.
Round 2: Tie
Food
I love food, and I love to try new things…but they call it “comfort food” for a reason. Where I live in Mexico, the food in the markets is familiar. I’m from the East Coast, so tacos were a special occasion food for us, but that just makes real Mexican food even better. Always a celebration.
Asia can be different, especially if you are a fan of bread and cheese. You can find just about everything you could want in the larger supermarkets, but the options are limited and expensive.
As a tourist, it’s fun to go to the “wet markets” and marvel at all the strange stuff—but when you live in a place for a while you want to know what you’re eating. I love Thai food and for me that was one of the big draws of living in Chiang Mai. But eating Thai twice a day for 3 years was a lot.
Round 3: Mexico/LatAm
Expat Community
I’m going to go with Asia on this one, but your results may vary. As an OWD (older, whitish dude) I kind of blend in with the crowd here.
Expats in Asia (especially SE Asia) don’t integrate into local society very well so we group up pretty readily. Our own neighborhoods & residences, our own bars & restaurants, and our own clubs & organizations.
In SE Asia, your interactions with locals are almost entirely transactional. Language, custom, family, and even architecture combine to form a pretty effective barrier to integration. They are polite to you, but it’s almost always at arm’s length. But they are so nice and have such good manners that it takes a couple of years to realize that you don’t really know any locals (who didn’t live and work abroad themselves).
In Mexico there are two different options for Expats. Some places are known as expat communities, such as Lake Chapala and San Miguel de Allende. On the other hand, it is much easier to integrate into Mexican society. There are so many cases of Mexican-Americans with blended families that it can be hard to differentiate. My Mexican friends who split their time between Texas and Oaxaca tell me that local Mexicans consider them Americans, and Americans consider them Mexican.
Round 4: Slight advantage to Asia.
Language
Big, big advantage Mexico and LatAm.
I have struggled with a total of 4 Asian languages. (Mandarin, Japanese, Thai and Vietnamese). My Mandarin was passable, briefly, but Thai and Vietnamese were non-starters – even when I took classes.
Spanish, on the other hand, makes sense and sounds familiar. After two years my listening comprehension is still weak, but I can say just about everything I want to say in Spanish. Even if you have no plans to learn Spanish – you’ll still be able to read maps & signs & menus.
Round 5: Advantage LatAm.
Medical Care
Clear advantage Asia. Thailand is a medical tourism destination, especially for cardiac care. I was in Vietnam for Covid lockdown, where they struggled to defend their 0 fatality status until almost the end of the pandemic. Not only do they have the new facilities and international-level staff, but they are set up to handle foreigners. I did the “executive physical exam” in Chiang Mai (Ram Hosp) marketed to foreigners that was inexpensive and super-comprehensive – if it did have an assembly-line vibe. An entire battery of tests in one quick session – and results the same day. (I had a fatty liver.)
In Mexico City you can find international-standard hospitals, but lots of expats in Mexico return to the US for even medium-level issues.
Round 6: Advantage: Asia (especially Thailand)
Safety and Security
While I think the US media completely overhypes the risks posed to regular expats by the cartels, but you can’t ignore it either. I’ve been here for 2 years, and I’ve never had any trouble – BUT there are places I won’t go, and I always check in advance. Street crime and corruption are also part of the picture.
Expat centers in Asia tend to be pretty safe. You are more likely to get run over by a BMW than violently mugged in Chiang Mai & Saigon.
While I feel completely safe in my neighborhood in Jalatlaco Oaxaca, I am much more wary of being mugged in Centro at night. One of the reasons I have never had problems is because I restrict my activities – and if you live here you’ll have to do the same.
Round 7: Advantage Asia.
Infrastructure
In the late 1990s, I was riding a bus to Yangshuo, Guanxi Province – technically the middle of nowhere. The roads were great – new & well-paved. Along the side of the road were crews stringing cable through the emptiness – bringing phone and internet services to the masses. Mexico is still waiting. The roads are good. There are a lot of good airports, but not many trains. The internet is, quite frankly, a problem. It may be me or where I live. The fact remains, however, that internet accessibility and quality has been a struggle.
Round 8: Advantage Asia.
Local Community
Mexico is gonna get you. Mexicans don’t NOT know how to draw you into the community. It’s second nature to them to involve everyone in the festival, the procession, the fiesta, or the party. On a personal
level, you can expect to be invited to Mexican people’s homes – which is still pretty unusual in Asia (where entertaining is done at restaurants or KTVs). Around Christmas and big holidays, they may actually come to you! My little apartment complex (6 apts – all US or Texican) hosted an event for the entire neighborhood, complete with a PINATA, band and food. Every year, several homes in the neighborhood host them in a set schedule over a week. Note: Mexican pinatas are serious business. Injuries are common. They have a heavy ceramic shell, and the kids have to crack it to pieces with a big bat. None of this papier mache nonsense.
In China, I found the locals to be very friendly and open – but in Thailand and Vietnam the vibe was more reserved and transactional. Don’t get me wrong – they are lovely people who will treat you very well. But you’re an ATM. Your function is to dispense cash.
Category 9: Advantage LatAm
Overall
Mexico is a great option for expats who want to expand their world to include their new home. In reality, you can continue many of your existing relationships without all that much disruption. Because you’re in the same time zone, your situation really isn’t that different from moving to a new state. Mexico may be the best option for those looking to improve their lifestyle while maintaining as much of their “old life” as possible.
Asia is a great option for the expat who wants adventure, exotic food & locales, and a fresh start. I lived in Asia for a long time, so believe me when I tell you that you will lose connections back home. Not all of them, of course. But between the 12 hour time shift, the vast & exhausting distances, and the cultural distinctiveness, it is tough to keep casual relationships going. On the other hand, expat life in Asia can be fantastic. It’s beautiful, costs are low, and you will – at times – be treated embarrassingly well. But when you visit the US, you’ll be those weird people living in Thailand.
Or for those of you with grandchildren, I’ll simplify the process:
Grandkids → Mexico.
No grandkids → Asia
Contact me with specific questions and comments, and sign up for the newletter to get more comparisons. This topic is crucial to your expat planning process!