We've asked financial experts to weigh in and many have emphasized that with careful planning and well thought out strategies, it's entirely possible to live on this amount during retirement.
Now, a new survey by International Living listed 13 global destinations where entertainment, housing, healthcare, and food come with a much lower price tag than in the U.S., so retirees can live comfortably on $1,500 per month. Mexico is the undisputed winner, with three cities on the list — the most of any country.
The cheapest places to live are Pakistan, Egypt, Nepal, Bhutan, and Burundi. In these states, a person needs less than $430 per month to live comfortably. Which country has the highest cost of living? According to crowd-sourced databases, the most expensive countries in the world are Monaco, Singapore, and Switzerland.
It takes into account various factors such as the rule of law, property rights, freedom of speech and religion, and access to economic opportunities. Switzerland ranks first with a human freedom index of 9.11, followed closely by New Zealand at 9.01 and Denmark at 8.98.
Medellín, Colombia. Once known for its instability, Medellín has transformed into one of South America's most alluring cities for American retirees. Couples can live there for less than $1,700 per month, enjoying the springlike climate, outdoor recreation and vibrant culture.
In America, a typical retiree spends $4,345 on average, whereas the cost of living in Mexico for a single person can vary between $600 to $2,000 a month. Many expats report living comfortably in many areas of Mexico for $1,500 a month as well.
For those who wish to retire to safe havens that offer cheap living expenses, some of the cheapest and safest countries to retire to include Indonesia, Ghana, Romania, North Macedonia, and Vietnam.
Housing is likely your biggest expense, so downsize or relocate somewhere with a lower cost of living. Opt for a small space or rental apartment rather than homeownership. Shoot for $700 or less in rent/mortgage. Utilities should run you no more than $200 in a small space if you conserve energy.
Key Findings. On average, an individual needs $96,500 for sustainable comfort in a major U.S. city. This includes being able to pay off debt and invest for the future.
As these examples demonstrate, the cost of living in Costa Rica truly runs the gamut from shoestring to opulent depending on an expat's lifestyle and flexibility. Those capable of embracing a fairly modest, locally-oriented lifestyle can likely get by comfortably on $1,500-2,500 per month for one or two people all-in.
It's Possible To Retire on a $1,500 Monthly Budget
But with a little creativity and flexibility, you may find a new home with everything you want, including a good climate, welcoming community and affordable lifestyle.
Most U.S. citizens can get Social Security benefits while visiting or living outside the U.S. Find out if you qualify, how to apply, and who to contact to get help.
However, some of the most affordable and safe cities include Querétaro, Merida and Guanajuato. These cities offer a low cost of living, a rich culture and a relaxed atmosphere, making them excellent options for those looking to live or retire in Mexico.
Costa Rica
Once settled, most retiree couples can live well within the country for as little as $2,000 per month.
The average American spends $4,345 per month in retirement, according to the Bureau of Labor Statistics. That's $52,141 per year. Retirement planning means making sure you can afford your lifestyle after you stop working.
The cheapest places to retire abroad include Panama, the Philippines, Portugal, Malaysia, Mexico, Thailand and Vietnam. Before making the move, consider expenses such as travel costs, taxes and visas, which can vary significantly from one country to another.
Panama. Panama tops the list of best places in the world to retire, which means it could be a good option for anyone to live cheaply. It is no wonder that it regularly claims the title since the cost of living is under half of what it would cost in the U.S. at $1,112 for one person.
The best countries to live in are the Netherlands, Iceland and Luxembourg, based on the current data from the Global Happiness Index, Global Peace Index, and GDP per capita league table.
Switzerland's freely elected officials determine and implement national and local policy through a decentralized governance system. The 26 cantons have significant control over economic and social policy, with the federal government's powers largely limited to foreign affairs and some economic matters.
Iceland has the lowest ongoing conflict and militarization scores globally, making it the world safest country. In addition, it has the highest level of societal safety and security globally. Iceland has exceptionally low crime rates and it is known for its high social cohesiveness and its stable political climate.