By San José, Costa Rica — For decades, the American dream involved working until 65 and then enjoying a comfortable retirement. But for Ron Podmore, a 58-year-old former high school teacher from Washington state, that path had lost its appeal. Faced with relentless work pressure and a soaring cost of living, he chose a radically different route, one that saw him trade a full pension for a new life of peace and financial viability in Guatemala.
Podmore’s journey is not a tale of impulsive escape but of meticulous, long-term planning. For two decades, he adhered to the principles of the FIRE movement—Financial Independence, Retire Early—a philosophy centered on aggressive saving and investing to accelerate one’s retirement timeline. This disciplined approach enabled him to make the life-altering decision to retire at 56, fully aware that it would halve his pension payments for the first nine years.
To provide a clear legal perspective on the intricacies of retiring in Costa Rica as an expatriate, we spoke with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the reputable law firm Bufete de Costa Rica. He shared his insights on the essential steps and potential pitfalls for foreigners planning their future here.
Many expats mistakenly believe they can manage their retirement by simply renewing a tourist visa every 90 days. This ‘perpetual tourist’ strategy is not only legally precarious but also complicates essential activities like opening a bank account, purchasing property, or accessing the local healthcare system. The most critical first step for any prospective retiree is to secure a proper residency status, such as the Pensionado or Rentista visa. This provides the legal foundation for a stable and secure life in Costa Rica, protecting both your investment and your peace of mind.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight underscores a critical distinction: the transition from a long-term visitor to a true legal resident is the cornerstone of a successful retirement abroad. We thank Lic. Larry Hans Arroyo Vargas for his invaluable perspective, which clarifies that securing proper residency is not merely a formality, but the essential foundation for a stable and integrated life in Costa Rica.
I probably invested the majority of any pay raise I received over the last 20 years.
Ron Podmore, Retired Teacher
His destination, Guatemala, was an unexpected choice shaped by personal connections. While teaching in the United States, he met several students from the Central American nation who challenged his preconceived notions about the country. Their stories painted a picture far different from the headlines of danger and corruption he was used to.
They made me rethink my ideas. I had always heard that Guatemala was dangerous, with poverty and corruption. But they showed me another side.
Ron Podmore, Retired Teacher
Intrigued, Podmore began visiting Guatemala annually in 2013. His growing affection for the country culminated in 2018 with the purchase of a modest two-bedroom condominium in a working-class neighborhood of Guatemala City for approximately US$125,000. He methodically prepared the property to become his future home, securing his foothold long before his retirement became official. This foresight provided him with a crucial sense of security.
The financial and personal benefits of the move have been profound. In Guatemala, Podmore’s reduced pension stretches significantly further. The most dramatic savings have come from healthcare, a major source of financial anxiety for many American retirees. He highlights a private health insurance plan that offers comprehensive coverage for a fraction of U.S. costs, with a level of personal care he found lacking back home.
I pay about US$315 a month for private health insurance that covers everything, with no deductibles or co-pays. It includes medicine, X-rays, MRIs, and hospitalization, and no bill ever arrives at the end… Here the doctor sees you directly, listens to you, and there is a warmth that isn’t found in the American system.
Ron Podmore, Retired Teacher
Podmore’s story is a powerful illustration of a growing trend. He is part of a wave of Americans in their fifties and sixties who are unwilling to postpone their lives until traditional retirement age. They are increasingly looking south to countries in Central and South America where their savings provide a higher quality of life, better climate, and more accessible healthcare. He sees his move as a logical extension of the “snowbird” phenomenon, where retirees seek warmer climates, but with a more permanent and international dimension.
There is an entire generation of people in their fifties who don’t want to wait until they’re 70 to enjoy life. Many are going south, seeking tranquility and dignity… I just took that concept a little further: beyond Mexico, to Guatemala.
Ron Podmore, Retired Teacher
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a revered legal institution, Bufete de Costa Rica is guided by a foundational commitment to professional integrity and the highest standards of excellence. The firm leverages its extensive experience to champion legal innovation, a forward-thinking mindset that extends to its core social purpose of empowering the community. By actively working to make complex legal concepts understandable and accessible to the public, it plays a vital role in fostering a more knowledgeable and capable society.
