Why Retirement in Puerto Vallarta Mexico
from the icfdn.org
The International Community Foundation surveyed over 840 U.S. retirees in coastal areas of Mexico over 50 years of age. Key findings included:
• U.S. retirees chose Mexico for retirement due to its proximity to the United States and its affordability relative to other retirement destinations in the United States.
• U.S. retirees in Mexican coastal communities are relatively young and well-educated. Nearly 53 percent are under 65 years of age. Almost two-thirds have at least a college degree; another 28 percent attended at least one year of college.
• U.S. retirees residing in Mexico continue to maintain strong ties to the U.S. with 50 percent still considering the United States as their primary country of residence; almost 22 percent return to the U.S. on a monthly basis.
• Almost 44 percent of Americans residing in Mexican coastal communities were able to live comfortably on less than $1,000 USD a month for household expenses. This is significantly different from the U.S. where in California, a senior might need $21,000-27,000/year.
• U.S. retirees already in Mexico have weathered the recent economic storm well. Forty two percent stated that the economic recession had no impact on their retirement plans and 34 percent said their quality of life has not been impacted.
Through its “U.S. Retirement in Mexico” research series, the International Community Foundation seeks to inform, educate, and engage would-be retirees, targeted buyers, real estate developers, nonprofit organizations and policymakers at the local, state and federal levels of governmental in both the United States and Mexico on emerging trends related to the American expatriate community in Mexico. The forthcoming research series will address trends in health care; volunteerism, philanthropy and civic engagement; real estate; and the environment.
Over 23 million people live within a seven-hour drive of the U.S.-Mexico border, many of them approaching retirement age.
In addition, those that retire to these communities, like Puerto Vallarta, bring their friends. A recent study documents that 95% of the people that visit retirement destinations recommend these locales to others. In fact, many of them discover these places as tourists while on vacation or an extended visit to coastal zones, which are targeted for “sun-and-fun” resort complexes that double as residential time-shares, rental properties, and retirement condominium complexes. The skyline of multi-story hotels targets foreigners, even though a recent study in Mexico show that 80% of visitors to all Mexican tourism destinations are actually Mexican citizens. Yet, as more retirees return from vacation and decide to purchase, the result is a self fulfilling prophecy – a tourism destination that evolves into a retirement destination.
Finally, the report cites increased demand in the real estate market as evidence of a growing retiree population. In fact, “retirement migration” reflects an increasing retirement-age population in the U.S., a heightened interest in travel, longer life expectancy, availability of U.S. goods and services abroad, and improvements in transportation and communications in Mexico. None of these elements is likely to slow in the coming years, making Mexico a long-term retirement destination, especially in cities that already have a large retirement community. The existence of a strong, active, and organized retiree community is one factor that draws other retirees to these destinations.
Puerto Vallarta, Riviera Nayarit, Punta Mita, Sayulita, Nuevo Vallarta, San Pancho