Between 2005 and 2012, the number of Americans living in Central America and the Caribbean who receive Social Security checks rose 26 percent to 28,126.

In South America, that number increased 48 percent over the same period to 22,019, while Mexico estimates that the number of Americans living in that country has now topped one million, up from 360,000 in 2000.

Why the big jump in Americans moving to other countries, especially in their later years?

As more baby boomers reach retirement age, they are realizing that they may not have enough saved to live comfortably in the years ahead. The U.S. dollar is worth less, home equity and personal retirement portfolios are often not as valuable as projections had estimated, and heath-care costs here at home are far from certain.

That’s why so many boomers are moving, living and retiring overseas. They are finding that they can live on a budget, while still enjoying many of the amenities and comforts of home. Plus a new life in retirement overseas can provide a gateway to travel new parts of the world and experience cultures in ways that no guidebook or tour could afford.

From a beautiful, friendly beach town where you could live for as little as $570 a month to a historic colonial city where you could retire well for as little as $1,080 a month, retirees are figuring out how to make their retirement dreams come true no matter how big (or small) their retirement nest eggs.

For less than the cost of a mortgage payment in the United States, retirees can enjoy a better life with more freedom, a chance to start over, and an opportunity to refocus their lives on the things that matter most.

So how do you live out your dream life in retirement?
• First, start by narrowing down what you’re looking for. Tropical? Caribbean? City life? Colonial city? Wide-open countryside?

• Second, look at your budget. Will you be living on Social Security alone? Do you have other retirement income from a pension or 401(k)?

• Third, begin to search out specific cities where you want to live that are within your budget.

Some people take living cheaply to an extreme; these individuals have embraced a truly local lifestyle. In Thailand, for example, on retiree figured out how to live comfortably for as little as $300 a month. This single adult bikes around town, eats at food stalls and makes a sport out of saving money wherever he can. Another woman owns her own apartment and lives very comfortably on her Social Security check of $600 a month.

Although these two examples are extremes, they make the point. It is very possible to enjoy a comfortable “Western lifestyle,” assuming you own your own home, for as little as $723 a month in countries including Ecuador, Panama, Nicaragua and Thailand. Below is a basic monthly budget:

What if you rent? In many places around the world, including Ecuador, Panama, Nicaragua, Belize, Thailand, Vietnam, even rural France and Italy, $450 a month can afford you a charming, comfortable place to live. Some places, including Ecuador and Panama, for example, a budget this size could get you a modern, fully furnished two-story house with two bedrooms, complete with a full lawn and access to a community pool.

These are just a few of many examples of how to retire well and for less, overseas. From the beaches of Mexico to destinations in Europe, Asia, and Latin America, for those who dare, retirement is just the beginning of the adventure.

Author Kathleen Peddicord is editor and publisher of Live and Invest Overseas. She has covered the international beat for nearly 30 years and is considered the world’s foremost authority on overseas living and retirement. For more information, visit www.LiveAndInvestOverseas.com.