People choose to retire outside of their native country for a variety of reasons. Some people choose to retire abroad in order to bask in a preferred climate. Some people crave a shift in their pace of life, and some retire abroad for a change of scenery-be it the mountains or a beach. For a large number of retirees, the primary consideration for retiring abroad is their finances.

The reality of rising inflation and a falling income come retirement age encourages a search for affordable living, beyond borders, in retirement.

Over the last 45 years, inflation in the U.S. has averaged about 4.5% annually. If you currently earn $50,000.00 per year, you will need to earn $52,250.00 next year ($50,000.00 x 4.5) and so forth in order to maintain your present standard of living and stay even with inflation. In the same vein, if your investment returns an average of 8% you can reasonably expect inflation to eat away about 3% to 4%, based on historical figures. At 4% inflation you will lose half of your purchasing power in 18 years. Certainly no one can predict the future and inflation could in fact decrease and inflate investments. However, most American retirees are not counting on inflation decreasing to secure their future.

International living has revealed itself as a viable option for retirees. According to the Social Security Administration, in 2002, 242,128 American retirees had their Social Security benefits sent outside of the U.S.

Costa Rica sports between 20,000 and 30,000 Americans, according to the U.S. embassy there. Costa Rica has lured American and European retirees with its beauty, affordability, and stable government. One reason being that so many retired Americans have chosen Costa Rica is that Costa Rica is a tax haven for retirees. Americans living in Costa Rica do not have to pay income taxes on social security received from the U.S. government.

Countless testimonials from Americans now living in Costa Rica claim their social security check affords them luxuries that it wouldn