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I have a friend who took that route when she retired. There are some very well established housing developments in Mexico deliberately contrived for US/Canadian retirees. The residents keep their US citizenship, but are able to live on much lower living expense in Mexico, so their pension checks stretch farther. The local stores and businesses all have personnel who can speak English. A good deal of the shopping can be done with US currency as an alternative to Mexican currency. For TV, there are satellite hookups to US stations. And the weather is very nice and warm.
Rather obviously, living this way outside the US can also have a downside. I think, but I am not sure, that the US retirees can only lease but not own their homes. Naturally their mail comes through the Mexican postal system. Some things familiar in the US but not in Mexico must be imported at some expense, etc. Public services, hospitals, etc., tend to sink to the Mexican average. Phone calls to friends and family are expensive long distance. But the retirees remain US citizens, are in contact with the US embassy in Mexico City, can cast ballots in US elections, and can easily travel back and forth to the US.
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