Everyone probably has a favorite tropical destination.  More and more people are heading out to warmer climates to retiree.  This will be a big trend for millions of baby boomers.  The Wall Street Journal explains some details of "retiring abroad."

Social Security won't be much of a problem. The Social Security Administration will electronically deposit a monthly Social Security check in many banks around the world, though not all. Still, many expat retirees, to avoid challenges with local banking, have their Social Security checks electronically deposited into their U.S. bank, which they can then access online.

Health care is a bigger concern. Few U.S. employers offer health-care coverage to expat retirees, and U.S. carriers typically don't provide individual coverage to Americans living abroad. Moreover, the federal Medicare program generally doesn't cover costs outside the U.S. As such, many retirees either pay out of pocket or, once eligible for Medicare at age 65, return to the U.S. from time to time for care.