Gretchen Kay, 69, and her husband Robert, 69, have worked successful careers most of their lives. But when it came time to retire, they realized that they were very unprepared.
After years of underinvesting in their retirement accounts, they found they could not afford health care in the United States. This prompted them to consider alternative living arrangements, and they decided to leave the United States entirely, living in a new beach house in Ecuador for a fraction of the cost. Utah.
This town, located between the towns of Canoa and San Vicente, was popular with foreigners but has a strong local culture. Gretchen, who asked to use her first and middle name for privacy reasons, said health care prices were in some cases 10 times lower than in the US, and housing was almost five times less. He said that he went from the constant pressure of retirement to a comfortable, although sometimes lonely, life.
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“You don’t have to just give up and say, I’m going to be a Walmart believer and live in an RV for the rest of my life in a rental,” Gretchen said. “You can come down here and be fine.”
Moving to Ecuador
Gretchen says she always had an entrepreneurial mindset, as she was raised in a “rich family” of business owners.
She and her first husband ran a commercial printing company for eight years before divorcing, and she later built custom homes. For ten years before he moved, he worked at a resort, which he said was difficult. Her current husband worked for forty years in Moab doing uranium research and started a solar company.
With his salary, he traveled frequently, once on horseback through the Pacific Crest Trail, a distance of more than 1,000 kilometers. He said he does not regret his actions, even though they cost a lot of money.
“Between all of those things, the result of a happy, happy life was that I didn’t save for retirement,” Gretchen said. “It never occurred to me. My father never talked about it. I didn’t know anything about retirement, and it’s my fault.”
Because he owned his own businesses early in his career, he wasn’t mandated to put too much into his 401(k). Robert had enough money to support himself but not enough for long-term savings. They ended up with about $3,000 a month in Social Security.
“We did a lot of math and realized that we couldn’t afford to retire in the United States unless it was a bad situation that we wouldn’t be happy about,” Gretchen said. . “We had to be careful about what we could do later.”
Like many boomers facing retirement, medical expenses were overwhelming. Copays for joint replacements were “really bad money,” Gretchen said.
Gretchen had relatives in South America, including her sister in Peru. In 2013, he read that Ecuador was the top country for retirees, according to International Living magazine, as well as the lowest of any country he considered. . He also read that the locals are more welcoming to tourists than other Latin American countries.
Her husband took a tour of land and buildings along the coast of Ecuador, inspecting many new developments near the water. They lived in a building built in America with stronger structures, although it was difficult to move. They hired an immigration attorney and did various inspections and background checks, and they took action in 2016.
Comfortable living on the cheap
With $3,000 a month and a small business account, Gretchen and her husband live comfortably in Ecuador. They live on less than $1,000 and save the rest to return to the US, where they spend several months a year in San Diego where his sister lives. Their neighbors are mostly expats, though he said many wealthy Ecuadorians are also moving to the coast.
Gretchen Kay and her husband live in a newly built courthouse in Ecuador. Gretchen Kay
They bought their new beach house in Ecuador for $115,000 and say similar condos rent for $800 a month. He said that the prices have remained low because of the big earthquake in 2016 which destroyed many properties along the coast.
Gretchen says her HOA fee — which includes property insurance — is $160 a month, her electricity is about $100 a month, and property taxes are $60 a year. In Utah, they pay $1,000 a year in property insurance and about $1,000 in property taxes.
“There is no cost of living here,” Gretchen said, noting that shopping is the only cost similar to the US because of tariffs on many imported goods. However, eating out is usually about a third of the cost of the same meal in the United States. They decided not to give the car frequent buses and inexpensive taxis, which cost about $8 to the grocery store.
His medical expenses are very low in Ecuador. After the hip replacement he received in the United States failed, he was rushed to a hospital in Ecuador and paid $6,000 for the operation. When he asked the Mayo Clinic how much the surgery would cost in the US, he was told $80,000. While an MRI in Ecuador is $190, it is over $1,000 in the US. He also said he received immediate attention and could easily get a medical appointment, while he waited months to get a similar appointment in America.
Gretchen Kay and her husband have taken trips to the nearby Galapagos Islands. Gretchen Kay
“Even with Medicare, with the supplements you need and the different parts, it was beyond our financial strength, and you still have to pay 20%,” Gretchen said. “Here, we can join the national health plan for $80 a month for both of us.”
It took time to adjust to Ecuador’s stance on independence and “personal responsibility.” He said that many houses are surrounded by barbed wire, while his building has four security doors. He added that the police often do not respond to small incidents, and the buildings are often “chaotic” and difficult to navigate.
Life is sometimes boring and fun
They have taken trips to other parts of the country including Quito, Cuenca and the Galapagos. However, Gretchen says they have little desire to explore further as the roads are often difficult to navigate, and are content to spend their time in their small town.
“We had a fun club here a few years ago, and they had cars, so we’d go to the nearest town for karaoke or trivia nights,” said Gretchen. “Well, those people moved away or died, and my husband and I decided that we shouldn’t be taking taxis into town. We don’t go unless someone someone invited us, and that’s a shame.”
At his age, he said he lost the ability to explore and get to know the people of his area, although he regretted not making more of an effort. He said that many locals accept and appreciate that many foreigners respect their culture and traditions.
“We are polite, careful and respectful to the local people; we never act like loud Americans,” Gretchen said.
He said he has many hobbies he wants to start in Ecuador, although his hip problems and skin cancer have hindered his plans. He tries to find other hobbies like cooking or reading.
“I’m ashamed to admit that we are in a group that we never left this building; we found a gringo center here, and we live here,” said Gretchen. “Our only interactions are at the grocery store, our taxi drivers, and the repair people, and for that, we use Google Translate. We thought we would learn Spanish by osmosis, but we didn’t. you know.”
Have you recently moved from the United States to a new country? Contact the reporter at nsheidlower@businessinsider.com.