Retiring to America from the UK: a complete guide

Can a UK citizen retire to the US?

If you’re considering retiring to America from the UK, it’s helpful to know that the US doesn’t have a dedicated ‘retirement visa.’ But there are ways to make it work.

The B-2 tourist visa is a popular option for retirees, letting you stay up to six months at a time. It costs $185 and usually takes a few weeks to process.

However, it’s meant for short visits, so you’ll need to re-enter the country regularly.

For a more permanent solution, the EB-5 visa offers a pathway to a green card through investment. It requires a minimum investment of $1,050,000 in a US commercial enterprise or $800,000 if the investment is in a targeted employment area (TEA).

Substantial costs are involved (over $75,000), and processing times can exceed a year.

With Donald Trump back in office, it’s wise to stay updated on potential immigration changes that could affect your plans to retire to the US from the UK.

How much money do you need to retire in the US?

When retiring to the US from the UK, it’s crucial to know living costs can be higher than in the UK.

Housing is one of the biggest factors, especially in cities like San Francisco and New York, where a one-bedroom apartment might cost around $3,000 and $4,000 a month, respectively.

While rural areas offer more affordable options, housing in popular US cities tends to be pricier than in the UK.

Healthcare is another big expense. Without the NHS, you’ll need private insurance, which costs an average of $750 per person monthly, with additional costs for treatments and prescriptions. The shift from free public healthcare often surprises newcomers, so planning for it is essential.

Daily expenses like groceries, utilities, and transport vary widely. In expensive areas like New York, basics such as groceries or dining out cost substantially more than in smaller towns.

In cities, public transport is an option, but in suburban or rural areas, a car may be necessary, adding fuel and insurance costs.

Taxes differ greatly, too, when retiring to America from the UK. The US has federal, state, and sometimes city taxes, while the UK-US tax treaty helps avoid double taxation.

Some states, including Florida and Texas, have no income tax and may offer some savings.

A tax adviser can help you manage any liabilities.

What are the benefits of retiring in the US?

The US offers various lifestyles, climates, and landscapes, from Florida’s beach towns to Colorado’s mountains.

For travel lovers, the US includes bustling cities and quiet national parks. Each state brings its own experience, so you can pick a location that best fits your lifestyle.

Many expats find comfort in the established UK communities in cities like New York, Los Angeles, and Austin. These groups make the transition easier, providing a social network with familiar cultural touches.

The US also offers excellent infrastructure, shopping, and entertainment, so you’ll have plenty of lifestyle perks to enjoy.

What are the drawbacks of retiring in the US?

A major drawback of retirement in the US for UK citizens is healthcare costs.

Without the NHS, healthcare is private, and insurance premiums and out-of-pocket expenses can quickly add up. Monthly premiums alone can be substantial, and there may be extra costs for treatments and medications not fully covered.

The US tax system is also complicated, with federal, state, and sometimes city taxes. 

Unbiased has financial advisers in the US to help you navigate these tax challenges. And if you’re considering retirement in popular areas like New York, California, or Florida, remember living costs, especially for real estate and services. can be higher there. 

Without a specific retirement visa, managing residency status requires careful planning, often with a tourist or EB-5 visa for longer-term stays.

Can you use your UK pension in the US?

UK state and personal pensions can be accessed in the US. As the UK has a social security agreement with the US, your state pension will continue to increase annually, as it would if you were in the UK. This is a big plus, helping to maintain your pension’s value over time.

Some retirees prefer to keep their pensions in the UK and use an exchange provider to transfer funds as needed, which can help with currency fluctuations.

UK pensions might be subject to US taxes depending on residency, so speaking with a cross-border financial adviser can help reduce tax impacts and offer guidance on managing pensions across both countries.

What healthcare options are available for UK retirees in the US?

Healthcare in the US is a major consideration for retirees, as the system is primarily private and requires health insurance.

Medicare is available to US citizens and permanent residents over the age of 65, but most UK retirees won’t qualify unless they achieve permanent residency. This means UK retirees will typically need private health insurance.

It’s worth noting a 65-year-old retiring this year in the US can expect to spend an average of $165,000 on healthcare and medical expenses throughout their retirement.

Without Medicare eligibility, UK retirees should plan for these expenses carefully, as out-of-pocket costs for emergency or specialised care in the US can add up quickly. 

What are the steps to retire to the US from the UK?

Here’s a quick rundown of steps on how to retire in the US from the UK:

1. Pick the right visa: Choose between the B-2 tourist visa for shorter stays or the EB-5 investor visa if you’re investing in a US business.
2. Find a place to live: Look for housing that matches your budget and climate preference. Renting is often a good start.
3. Set up your finances: Open a US bank account, transfer funds as needed, and arrange for tax obligations in both the UK and the US.
4. Arrange health insurance: Select a private health insurance plan suited to your needs.
5. Get acclimated: Consider transportation, community services, and lifestyle adjustments to help you settle in.

How can you make the most of your retirement in the US?

If you retire to America from the UK, adapting to the local culture can be enjoyable. Many expat or local community groups make settling in easier, as Americans tend to be friendly and welcoming.

With 50 states to explore, you’ll find endless options—from Florida’s beaches to New England’s historic towns and the vast national parks in the West.

Managing finances is key to enjoying your retirement. Setting a budget that includes UK and US accounts will help you keep track of exchange rates and taxes.

A cross-border financial adviser can offer advice on tax planning, currency exchange, and investments to help you get the most out of your retirement in the US.

Find an adviser via Unbiased to discuss your retirement options

With careful planning around visas, finances, and healthcare, the US offers endless possibilities for a vibrant retirement.

Whether you’re drawn to scenic coastlines, dynamic cities, or quiet rural life, there’s a spot in the US that may be ideal, but ensure you stay informed, and budget wisely.

Let Unbiased match you with a professional financial adviser to guide your retirement journey with confidence.