This page summary, takeaways, and transcript were generated
by AI from the video captions.
The video itself remains the source of truth.
Americans seeking financial security and a better quality of life in retirement are increasingly finding that they must take personal responsibility for their future, as traditional safety nets like government programs and employer loyalty are unreliable, making international relocation a viable option.
The video argues that Americans are increasingly compelled to take personal responsibility for their financial futures because traditional support systems are failing. The host, Alex, shares his observations from living abroad and interacting with others who have moved overseas, suggesting that a primary motivation is self-preservation. He highlights that many people seek to improve their lives by moving to other countries, especially when facing challenges related to independence, healthcare, or the high cost of living in the United States.
Several key factors contribute to this need for self-reliance. The government's ability to provide adequate support, particularly through Social Security, is questioned due to its projected financial strain. Furthermore, the concept of employer loyalty has eroded, with widespread layoffs and job insecurity meaning individuals cannot depend on their employers for long-term stability. The education system, while costly, also fails to guarantee success or financial freedom, often leaving graduates with significant debt.
Consequently, retirement planning becomes a critical personal endeavor. For those who haven't planned meticulously from a young age, retiring comfortably in the US with a decent quality of life is becoming unattainable. The video suggests that moving abroad to countries with a lower cost of living offers a more realistic path to financial security and a better lifestyle in retirement. The host emphasizes that instead of relying on external factors like UBI or automation, individuals must proactively build their own financial safety nets through saving and investing.
Traditional safety nets like Social Security and employer loyalty are becoming unreliable for Americans. This shift means individuals must proactively take personal responsibility for their financial future to ensure security in retirement. Relying solely on these systems is increasingly risky due to financial instability and job market changes.
The video suggests that relying solely on Social Security for retirement is increasingly risky. Potential benefit cuts and the program's own financial instability raise concerns about its long-term reliability. Therefore, individuals are advised to supplement or replace it with personal savings and investment strategies.
Moving to countries with a lower cost of living can significantly extend retirement funds, offering a higher quality of life than a meager existence in the US. This makes international relocation a viable and attractive option for many Americans seeking financial security. It allows retirement savings to last much longer.
With diminished employer loyalty and potential government program instability, traditional retirement planning is insufficient. The video emphasizes personal responsibility, including saving and investing proactively. Considering retirement abroad in countries with a lower cost of living is presented as a practical alternative for achieving financial security.
Many Americans are seeking a better quality of life and financial security by retiring abroad. The high cost of living in the US, coupled with the unreliability of traditional support systems, pushes individuals to explore countries where their retirement funds can go further. This allows for a more comfortable and less stressful retirement.
While education is important, it does not guarantee financial security or success. Many graduates face decades of student loan debt, which can hinder their ability to save and plan for retirement. The video implies that the education system does not adequately prepare individuals for long-term financial stability on its own.
Employer loyalty has diminished due to widespread layoffs and job insecurity. Companies no longer guarantee long-term stability for their employees. This means individuals must prepare for career disruptions and plan for their own financial future independently.
Relying solely on Social Security for retirement is increasingly risky. The program faces potential benefit cuts and financial instability. Individuals should not depend on it as their sole source of retirement income.
Yes, it is possible to live abroad on a military pension and Social Security. One commenter shares their experience of living in Southern Leyte with no rent and a house. This suggests that a lower cost of living in other countries can make these benefits more sustainable.
Moving abroad can offer a more realistic path to financial security and a better lifestyle in retirement. Countries with a lower cost of living can significantly extend retirement funds. This allows for a higher quality of life than might be possible on a limited budget in the US.
0:02 Hey YouTube, Alex here and today's topic is nobody is coming to save Americans. I created this topic because I had this thought: why are people moving abroad? Why are they leaving the United States? And I think some of that comes down to people wanting to save themselves.
0:24 If this is your first time with the channel, my name is Alex. I have traveled a lot, lived overseas for a couple years in Asia, and I'm currently back in the states working toward my financial freedom. This channel discusses a lot of different topics related to living abroad and living here in the states.
0:45 This video came to my mind because I have a lot of different friends living abroad, who have lived abroad, who plan to live abroad. I'm trying to understand our motivations, and I think that one of the top motivations is that people are essentially trying to save themselves.
1:05 What do I mean by that? Well, when you go abroad, there are elements of life that are better. Why else would somebody move to another country if they didn't feel like their life was going to get better? And some of these are very, very serious situations.
1:24 Some people may be dealing with independence issues where they move to another country, they can afford to hire help, they may not have the energy to do everything independently that it takes to do in America. America, we're very independent and most of us do everything that we can on our own until we lose that independence.
1:52 I thought I'd talk about the factors as to why I think that people come to this conclusion and dig into that topic. So, let's go ahead and get into it.
2:03 The first reason is that the government is not going to come to rescue people. If you have managed to go through your life, you've been through say a divorce, you've been through a layoff, I've been laid off.
2:22 When I was in a high-paying role, I did save and invest quite a bit of what I earned. I didn't expect the party to last forever. But not everybody's in that position. And even then, for some of us, we're experiencing high earning years for a limited duration.
2:41 Most high-paid jobs, you don't come out at 18 making big bucks until you're 67. For a lot of us, we work up to those high-paying roles. Maybe we earn good money for say 10 years, and something changes. We're unable to make that top dollar anymore.
2:57 And so, some people do learn to invest, but with investing, the older you get, the less time you have to compound that wealth. And so, for a fair amount of people, I think specifically in Gen X, but also some millennials, their careers have been up and down.
3:18 Friend of mine uses the phrase tumbleweed. When you find yourself in that position and you're getting older, and you're familiar that, wow, it's going to cost me like $10,000 a month to live in the United States if I need home help, if I want to live in a nice area, if I want to enjoy life, not just exist in say a small studio apartment and walk to the grocery store and eat Kraft Mac and Cheese every day.
3:55 It's very expensive to be comfortable in the United States. A lot of people, if they didn't plan for that, well, they can't count on the government coming in like, "Hey, uh, you need this or that." Like I've heard about Medicaid facilities, for example, where they're not very desirable places to be.
4:15 But, that's what a lot of people are looking at if they are not financially prepared. When people are looking at their options and they're thinking, "Okay, well, I get $3,000 a month. It's going to be a meager living here on $3,000 a month. Or I could go abroad and that $3,000 a month puts me in a nice building with security.
4:37 I can eat out at restaurants. I'm not cooking. I'm not doing dishes. I can potentially have a relationship where somebody is focused on my well-being. Stats prove out that married guys tend to live longer than single guys.
5:00 And I think there's a lot to be said about having a happy relationship that you couldn't afford here in the States. And so, in the States, you have to save yourself if things didn't work out for you, then you're probably better off going abroad.
5:15 I mean, we look at something like Social Security. It's going to take a hit in about 6 years. Now, do I believe it's going to disappear overnight? Probably not. But, we're probably looking at a haircut as far as payments.
5:34 We are looking at a high chance of the payments being cut. So, if you didn't save and prepare and you're thinking, "Okay, well, I'm looking at my Social Security as my lifeline." That payment is going to have a lot more purchasing power elsewhere.
5:50 So, and I don't think the government is going to jump in and say, "Well, it's just for 1 year." It's just 1 year that we're going to cut Social Security. It's probably going to be a situation where it plays out for numerous years.
6:07 I don't know if the financial situation of the country changes, where maybe down the line it gets boosted, but it's not going to be something a lot of younger people are counting on. I'm certainly not counting on that.
6:20 And so, depending on the future of the economy, it may be a necessity for me to move abroad when I retire. Now, that's been my plan for a while now anyway, but it's only going to be more pronounced depending on the volatility of the markets, the cost of living increases through inflation.
6:43 Inflation is sticky. It's not, "Oh, well, prices are going up this year, and they're going to come back down next year." Nobody thinks that.
6:52 My next point is that employers are not loyal. I think in the past there was more loyalty to employees, or there was at least a golden era, where there were things like pensions, unions, labor protections, and the employer-employee relationship was not so distrusting as it is today.
7:15 It's not across the board. There are industries, if I think especially if you have a unique skill set, you are going to be able to take your skills and potentially switch. But what you see, I mean, with computer science, I started studying computer science in 2019 hoping to get a degree and then go have this lucrative career.
7:34 And now, with the combination of outsourcing and artificial intelligence, it's no longer the set path that it was spoken of 10 years ago. And I think that that may happen to the trades, that may happen to nursing where there's this constant drive to drive down wages or keep wages low.
7:55 Anyway, I just remember at a past employer, I'm not going to name them here, we were told by the CEO no layoffs. And a lot of people believed that, a lot of people believed he was telling the truth.
8:06 Hey, we're not going to have layoffs. A month later, 25% of the company was laid off, including me. And at that point, I thought, man, you really can't trust these employers.
8:16 I don't believe every employer is like that, but a lot of layoffs have happened where people thought, you know, hey, I've got this expensive education. I worked a lot.
8:27 If you've ever worked salary, often your hours can exceed the 40-hour workweek. I know when I worked in tech, I was working more than 40 hours per week. It was not just a clock-in at 8:00 and clock out at 5:00.
8:45 It was like, hey, I'm waking up at 6:00 to check my email and I really gave it my all. Now, did the government come in and tell the employer, no, you will retain these people or you will help them with career services or you will help them? No.
9:07 I realized late, unfortunately, it was all me. There was nobody coming to rescue me. There's unemployment, but my unemployment, if I had stayed in the states, I hadn't left, would have been $450 a week.
9:24 And I'm living in the Bay Area where $450 a week may cover rent. It's not going to cover much else besides rent. The area is super expensive.
9:37 And it's not really a place that is designed for people to make it very long on unemployment alone. So, what should people do? Especially if they're in tech, let's say they're in their 50s, they get laid off, they feel like, "Look, I'm probably not finding another role."
9:59 Odds are there's going to be some concern about my ability to put out work like a younger person. There's going to be concerns I'm going to want too much money. There's going to be concern that I've made good money, so I'm not as driven to produce as a younger candidate who's hungrier, may have student loan debt.
10:25 When people are faced with this lack of employer loyalty, it's like, "Okay, I can keep hunting for a job and burning thousands of dollars per month, or I could just move. I could move to a different country where I'm burning a third of the money for a comparable lifestyle."
10:42 It's possible to live super super cheap, but you're going to take a quality of life hit here. If you've ever seen an older person far beyond retirement age working, it's unfortunate. I don't judge them. It's a reality in the United States.
11:01 People have personal responsibility to be financially savvy, but that being said, there's still this thought in the back of any of our minds who have been through a layoff or had a negative experience with an employer, "Wow, I better really prepare for them to discard me at some point because it's not like the past in many cases where it's a for life."
11:32 Can be very tumultuous. I've seen several friends go through job loss in recent years and fortunately, they're basically all single with no kids where they're not trying to pay a mortgage, but I couldn't imagine what it would be like for those people thinking, "Man, you know, I've done such great work for this employer."
11:50 And so, I'm going to buy a house cuz I know they're going to keep me on this high salary where I can make this expensive mortgage payment. This is the reality a lot of us are preparing for. This is why I save and invest and try to live below my means is who knows when the party stops and you can't get back.
12:11 The next point is that the education system will not guarantee success. I was taught growing up to just get an education, but we see there's not a guarantee that you will succeed. Some people might say this comes down to useless degrees, but even valuable skill sets are seeing consolidation in their industries, like accounting and computer science.
12:53 Even valuable educations can result in economic struggle. People pay a lot of money and spend years attaining this education, but there's not much sympathy in terms of bailouts. There are people in their 50s working for the federal government who are still paying off law school debt.
13:28 Law school is expensive and can take a long time to pay back. People have some sense it's expensive before they go in, but they're not going to relieve them of the debt early. While there are loan forgiveness programs, they often require years of government work and still hang over your head.
13:51 A lot of people live heavily indebted in this country for mortgages, cars, and education. These costs have skyrocketed, and there's little interest in moderating prices. The idea that capping student loans will help is misguided; it might just return to a time when only the wealthy could afford an education.
14:18 Nobody cares about your retirement as much as you do. Growing up, nobody talked to me about retirement, saying I was too young. I disagree with that; people should think about retirement from a young age because you never know when something unexpected might happen, like a medical incident or a family member getting sick.
14:51 There's a lack of financial education in this country, which causes many problems. A lot of people don't plan for retirement and end up in difficult situations. This is where moving abroad can make sense.
15:08 I didn't start planning for retirement until I was 50. If you only start planning at 50, you're probably not going to be able to stay in the US. Most people who can retire here have been financially responsible their entire lives, living below their means, contributing to 401ks, investing, and paying off their homes.
15:43 If you didn't start planning early, you're looking at a very meager existence here unless you're willing to move to places like the Philippines, Thailand, or Vietnam. This is the best shot many people have of not working until they expire, by going to a country where $2,000 a month is substantial.
16:10 People retiring in America often need at least $60,000 a year plus healthcare coverage. Retiring in the United States with $20,000 or $30,000 a year doesn't allow for a meaningful quality of life. You're going to need $60,000 to $70,000, considering the costs you're not incurring like commuting, work clothes, or takeout.
16:44 If you're making significantly less than that, you'll be cutting corners, trying to scrimp, and game the system. The idea of moving to a small town might seem appealing, but if you're retired with health concerns, many small towns lack adequate healthcare. Do you want to be an hour and a half away from a hospital?
17:08 The local hospital here is more like a clinic, and most people don't trust it for emergencies. I had a co-worker have a medical incident recently, and they had to put her on a helicopter. Is that what you want to rely on for your healthcare?
17:27 Moving abroad offers a solution: you can live in a medium-sized city with decent healthcare, just 15 minutes from a hospital. You can get high-quality treatment quickly, potentially even in countries known for medical tourism like Thailand. People travel worldwide for treatment there.
17:55 There are countries where, in America, you'd be dealing with a broken system and living meagerly, but abroad, you could have a much higher quality of life. This is why planning early is wise. By the time I retire, because I started late and had career ups and downs, I may only be able to afford to retire overseas.
18:29 It might be a choice between getting a job at Kroger or Walmart to maintain healthcare or make up the difference between retirement and the cost of living, as inflation is a real thing. Getting angry isn't going to lower prices. I have a backup plan in mind: if it comes down to it, I want to be in a position to move to another country.
19:12 If you're below a certain tier, you're probably better off staying here. If you have nothing and are destitute, you may be better off becoming a ward of the state rather than going abroad where you might have enough for a nice apartment, healthcare, and good food, whereas back home you'd need roommates and wouldn't own a vehicle.
19:41 There are tiers in this system: the top tier can afford to retire anywhere, the medium tier can retire abroad but not in the West, and the bottom tier cannot afford to retire overseas or comfortably here, becoming a ward of the state as their only option.
20:07 Waiting for a rescue is a trap. Some people say they don't need a savings plan because Elon Musk predicted UBI or mass automation. I'm not counting on him to save me or implement policies that let me stop working. This isn't political; I'm not relying on these predictions because it's wishful thinking.
20:47 What if we don't get UBI or some kind of basic income? You're on your own unless you're totally destitute, and even then, the quality of that support is probably not good. Furthermore, UBI could cause more inflation.
21:10 I see it like my investing in dividend growth stocks; I'm building my own UBI. When I get older, I'll have various assets and companies producing wealth, so I won't be hoping for UBI to come through. I'm not counting on robots doing all the work.
21:49 Robotics technology will advance, and it would be lovely if programs were implemented to account for fewer future opportunities. Simultaneously, I'm skeptical of relying on others for my future well-being, which is why I work five days a week. Check out my Substack; the link is in the description.
22:24 That's a different platform for me to express my creative energy. I hope this video isn't too negative; I think the topic is empowering. The idea that I need to be responsible for my future, to save, invest, and plan ahead, is crucial. I cannot rely on someone else to make it happen.
22:49 I hope robots do the work we don't want to do, but I plan for a future where that may not happen. Let me know what you think in the comments. Is this topic controversial? Do you disagree? Do you think everything will be okay? It's always interesting to have this discussion. Give us a thumbs up if you enjoy this topic, and subscribe if you want to see more content like this.
Follow the journey through expat life, travel experiences, and the realities of living abroad while exploring different places, cultures, and everyday life overseas.
