With its tropical climate, universal health care system and low cost of living, Costa Rica is a popular retirement spot for Americans on Social Security. Some couples can live well in the country on just $2,000 per month, while others may need up to $3,000.
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.
Costa Rica
Once settled, most retiree couples can live well within the country for as little as $2,000 per month.
If you are a resident of a country that has a U.S. social security agreement, (other than Austria, Belgium, Denmark, Germany, Sweden, or Switzerland), we will continue your U.S. Social Security payments.
Wisconsin, New Hampshire, and Tennessee are all highly ranked retirement destinations for health care needs due to low or no income taxes, access to quality health care facilities, and access to nature and recreational activities.
Whether $3,000 a month is a good income or not largely depends on where you live and your personal circumstances. For some people, $3,000 a month may be more than enough to cover their living expenses and even have some left over for savings and leisure activities.
Exactly how much in earnings do you need to get a $3,000 benefit? Well, you just need to have averaged about 70% of the taxable maximum. In our example case, that means that your earnings in 1983 were about $22,000 and increased every year to where they ended at about $100,000 at age 62.
Chile. Chile is one of the cheapest and safest countries to retire to. It is also one of the countries where you can retire on just social security in 2024, based on its cost of living which is estimated to be around $1,780.
What are some of the most affordable countries to retire in? Portugal, Malaysia, Mexico, Costa Rica, Ecuador, Panama, Thailand, Spain, Vietnam, and Colombia are some of the most affordable countries to retire in, providing a high quality of life at a fraction of the cost of many Western countries.
If you receive Social Security benefits and live in Costa Rica, you may need to contact the embassy's Federal Benefits Unit to continue receiving benefits.
Among beneficiaries 65 and older, about 12% of men and 15% of women rely on Social Security to meet 90% of their needs, according to government data. The program is meant to replace about 40% of past earnings, but roughly 4 in 10 retirees receive more than 50% of their income from Social Security.
You can retire comfortably on $3,000 a month in retirement income by choosing to retire in a place with a cost of living that matches your financial resources. Housing cost is the key factor since it's both the largest component of retiree budgets and the household cost that varies most according to geography.
Those will become part of your budget. The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.
According to the 2024 edition of the CEOWORLD Magazine Health Care Index, Taiwan ranks as the country with the best healthcare system globally, with an overall score of 78.72. South Korea (77.7) and Australia (74.11) follow closely behind.
Yes, Portugal does have state-provided healthcare, which is free for all citizens and legal residents in Portugal. Even though medical care is mainly free, you may have to pay some fees when visiting emergency rooms, your family doctor, or requesting ambulance services.
Key takeaways
Delaware (1), West Virginia (2), Georgia (3), South Carolina (4) and Missouri (5) are the top five states for retirement in 2024. Alaska (50), New York (49), Washington (48), California (47), and North Dakota (46) landed at the bottom of the rankings for the best and worst states to retire.
What state is the best financially to retire in? A 2022 Kiplinger analysis ranked the most tax-friendly places in the country for retirement: Alaska, Florida, Iowa, Mississippi, Nevada, Pennsylvania, South Dakota, Tennessee, Texas, and Wyoming.