I spent some time in Colonia del Sacramento a few years ago. Fantastic little tourist/retirement village across the delta from Buens Aires. Well worth the visit, but a little slow for long term at this stage in my life.
I highly recommend looking into Colonial Del Sacramento then, it was beautiful and very cheap, even as I was being gauged like a tourist. There were also lots of Europeans and Americans there enjoying their golden years. Best part in my opinion is that you are a two hour boat ride to Buenos Aires, which is a very cosmopolitan europeanesqe city, with better Italian food than you will even find in Italy and better steak than Texas. So if you want a night on the town you still have that option. I never made it to Montevideo but I hear it’s a little more rural, I’m sure it a great city also though. Other options that I hear which are popular with expat retirees are Belize and Thailand. That article is right, the American dream is alive and well just not in America........ which brings me to tangent point, don’t be so arrogant/ignorant as to say you are from America, when you visit Uruguay and people ask you where you are from. It’s Estados Unitos.