As the first wave of baby boomers hits retirement age, life overseas beckons. But be warned: Retiring abroad can have its logistical headaches.

Many of today's graying expatriates are heading permanently offshore to stretch their nest egg. Jon and Gretchen Nickel, formerly of Portland, Ore., settled in Panama, where they say they can live like the rich without needing a big bankroll. Lee Harrison and Julie Lowrey, from Vermont, moved to Uruguay because the lower living costs allowed them to retire years early. Other expat retirees are seeking foreign adventure, cultural experiences and exotic travel, without having to board an airplane.

But retiring to a foreign land can present a number of challenges, from opening a local bank account to avoiding being gouged for services. And while many countries, from Belize to South Africa, offer inducements to attract foreign retirees, making sure you've got health insurance can be a big problem.

Moving abroad also means leaving behind family and friends, though Internet communications can shorten the distances. There can also be safety and security concerns, depending on where you end up.

"People go on a vacation and love the place and say, 'I want to live here.' But that's very different than living there day to day and buying groceries and dealing with your finances," says Hugh Bromma, chief executive of Entrust Group, a financial-services firm that caters to many expat retirees.

Roger and Jennifer Miller retired to the Caribbean nation of Dominica in 2005, expecting that meeting residency requirements "would be a cakewalk, and it wasn't," says Roger Miller, 61, a former analytical chemist in St. Louis. What's more, he says, "expenses you expect to be cheaper often aren't" because locals expect Americans have money and charge more for services. He says life in Dominica "is about two times more expensive than I was led to believe when we started asking around down here about retiring here."

No agency tracks how many U.S. retirees live overseas. The federal government requires no forms. To help start you in the right direction, here are some things you should consider before making a move:

Banking and finance

Online banking and brokerage accounts make managing money easy from anywhere you can find an Internet connection. But working with local banks can be frustrating.

Harrison, a former project manager with power company Exelon Corp., first retired to Ecuador at the age of 49, before relocating last year to a $160,000 beach house near Punta del Este, Uruguay, and a 1,000-square-foot apartment in Montevideo, Uruguay's cosmopolitan capital.

In Ecuador, which uses the U.S. dollar as the national currency, he could deposit dollar-denominated checks at his local bank, though they generally took three weeks to clear. But Uruguay uses the peso, and local banks don't accept dollar checks.