Retiring in Mexico: Residency, Health Care and Money in 2026

Retiring in Mexico comes down to three decisions: which residency you qualify for, how your Social Security will reach you, and what replaces Medicare, which generally doesn't pay for care outside the US. In 2026, permanent residency as a retiree asks for a pension of about US$7,300 a month or savings of about US$292,000; temporary residency asks for about US$4,330 a month.

Two items changed this year. Directo a México, the program that has carried US federal pension payments into Mexican bank accounts, closes on November 20, 2026. And IMSS voluntary health insurance costs MXN 20,600 a year per person at ages 60 to 69, with a list of pre-existing conditions that bar enrollment.

Residency for retiring in Mexico: the 2026 numbers

Since August 2025, consulates measure solvency in UMA, Mexico's inflation-indexed unit, instead of days of minimum wage. Figures you'll find online based on "days of minimum wage" are out of date. The 2026 amounts, at an UMA of MXN 117.31:

Treat these as approximate. Each consulate converts to dollars on its own. For retiree permanent residency, Las Vegas publishes US$7,762 a month or US$312,169 in savings, San Diego US$7,560 or US$303,880, and Houston about US$7,281 a month. Check the consulate where you will apply.

The process: you apply at a Mexican consulate in the US (the visa fee was US$56 at the consulates we checked), enter Mexico within 180 days on a single-entry visa, and request your card from the INM, Mexico's immigration institute, within 30 calendar days of arrival. Temporary residents can move to permanent after four years. Property worth more than about US$584,000 can also support temporary residency; see our guide to Mexico residency through real estate.

Social Security while you live in Mexico

US citizens can keep receiving Social Security in Mexico for as long as they live there; the six-month limit for beneficiaries outside the US does not apply to citizens. Non-citizens follow separate rules, and Mexico is on SSA's "Country List 2." SSI is not payable outside the US.

Each year, SSA mails beneficiaries in Mexico form SSA-7162. Not returning it can suspend your payments. The US–Mexico totalization agreement was signed in 2004 but is not in force.

Directo a México closes November 20, 2026

Banco de México is closing Directo a México because the Federal Reserve is discontinuing FedGlobal ACH, the channel behind it. As of October 19, 2026, we found no SSA, Treasury or US Embassy notice explaining what replaces it for Social Security deposits into Mexican banks.

Until there is an answer:

• Keep a US bank account for your benefits. That is always allowed.
• Check with SSA or the US Embassy's Federal Benefits Unit before you close anything.
• Don't plan on paper checks: an executive order ended most federal paper checks from September 30, 2025.

Moving money from that US account is routine. When we checked, Wise charged about US$7.67 to send US$1,000 to a Mexican account; fees change. Mexican ATMs typically charge about MXN 100 per withdrawal, and when a machine or card terminal offers to charge you in dollars, choose pesos. Mexican banks generally ask for your resident card, passport and proof of address to open an account. If your foreign accounts total more than US$10,000 at any point in the year, you file an FBAR. More options are in our guide to paying for property in Mexico from the US.

Medicare doesn't follow you to Mexico

Medicare.gov is direct about it: "Medicare usually doesn't cover health care while you're traveling outside the U.S." Its exceptions are narrow and apply mainly to people who live in the US, such as an emergency where a foreign hospital is closer than the nearest US one. Prescription drugs bought abroad are never covered.

Medigap plans C, D, F, G, M and N include foreign travel emergency coverage: 80% after a US$250 yearly deductible, with a US$50,000 lifetime limit, for care that starts in the first 60 days of a trip. That helps on vacation, not as a resident. You also have to live in the US to buy a Medigap policy or join a Medicare Advantage or Part D plan.

The harder question is Part B. In 2026 it costs US$202.90 a month, about US$2,435 a year, with a US$283 deductible. If you drop it and re-enroll later, the late penalty is 10% for each full 12-month period without Part B, paid for as long as you have it. Five years without it means a premium 50% higher for life. Living abroad is not an exception. Many retirees keep Part B in case they move back; it's a decision with a known cost either way.

IMSS voluntary health insurance

The IMSS program for people without employer coverage is the Seguro de Salud para la Familia. The 2026 fees, per person per year, for new sign-ups and renewals:

You pay a year in advance, with no refunds, and coverage starts on the first of the following month. IMSS asks for official ID, a CURP, an IMSS number, proof of address and a medical questionnaire. In practice the CURP implies legal residency.

The limits matter as much as the price:

• Conditions that bar enrollment: malignant tumors, late complications of diabetes, chronic liver disease, chronic kidney failure, heart valve disease and heart failure, after-effects of a heart attack or angina, COPD with respiratory failure, chronic connective-tissue disease, addictions, psychosis and dementia, congenital disease, and HIV/AIDS.
• Waiting periods: one year for many elective surgeries, such as hernias and varicose veins; two years for orthopedic surgery.
• Never covered: cosmetic surgery, glasses and hearing aids, most dental work, prostheses, fertility treatment, and chronic conditions that require permanent therapeutic control.

If an undeclared pre-existing condition shows up in the first year, IMSS can cancel the policy and bill you for the care.

Private insurance and IMSS-Bienestar

Private coverage fills the gaps, at a wide range of prices. Published 2026 estimates put Mexican private plans at about US$3,840 to US$9,600 a year at age 60, and international plans at about US$7,000 to US$9,000 or more after 65. Many Mexican insurers don't accept new applicants over 64 to 70, so the age at which you apply matters. Get quotes before you move. The State Department notes that many Mexican hospitals won't discharge a patient until the bill is paid.

IMSS-Bienestar replaced INSABI in 2023 as the public system for people without social security, who have a legal right to free care. Guanajuato, Querétaro and Jalisco are among the states that have not joined it and run their own state health services. How foreign residents fare in that system in practice is not well documented.

Cost of living

Budgets depend on the town and on whether you rent. In San Miguel de Allende, 2026 estimates for a couple renting run from about US$2,400 to US$3,400 a month; owners subtract the rent. A private doctor's visit runs about US$40 to US$70, and the legal minimum for a domestic worker in 2026 is MXN 342.47 a day. The line-by-line numbers are in our guide to the cost of living in San Miguel de Allende, and our overview of where Americans live in Mexico compares other towns.

Driving and bringing a car

A US-plated car needs a temporary import permit (TIP) outside the border strip of about 25 km, Baja California and part of Sonora. The rules that matter to retirees:

• Only visitors and temporary residents can hold a TIP, for as long as that status lasts. Permanent residents cannot. If you go straight to permanent residency, a US-plated car no longer fits the rules, so decide what to do with it before you move.
• Cost: about US$51 plus VAT, and a refundable deposit of US$400 for a 2007 or newer model, US$300 for 2001–2006, and US$200 for 2000 or older. Confirm on Banjercito's site before you cross.
• Deadlines: a car not taken out in time is considered illegally in the country.
• Insurance: liability coverage is mandatory on federal roads, and US policies don't count, so buy a Mexican policy.

Where Vasto fits

If San Miguel is on your list, Casa Campanas has six bedrooms with private baths around a central patio, a covered pool kept at 30 °C, and 24/7 security, five kilometers from the center. For a quieter setting near Querétaro, Las Nubes is a three-bedroom cabin in the Lagunas de Servín forest, at 2,760 m. We can walk you through the purchase and the residency paperwork alongside it.

This guide is general information, not legal, tax or insurance advice. Confirm your case with a Mexican consulate, the Social Security Administration and a tax advisor.