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. 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.
The results show that retirees can still live comfortably, even with a budget of $2,000 or less in certain cities. For retirees, finding a safe and affordable place to live is crucial. Not only do they want to stretch their retirement savings, but they also want to feel secure and comfortable in their surroundings.
Countries like Costa Rica, Panama, Ecuador, and Belize are frequently cited for their affordable cost of living and pleasant climates. Known for the “pura vida” lifestyle, Costa Rica provides a stable and friendly environment. Panama stands out for its pensionado visa offering discounts to retirees.
“Retiring on $2,000 per month is very possible,” said Gary Knode, president at Safe Harbor Financial. “In my practice, I've seen it work. The key is reducing expenses and eliminating any market risk that could impact your savings if there were a major market downturn.
What is the least expensive country to live in? 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.
For those thinking in dollars, living in Portugal on $2000 a month is feasible, especially in the Algarve, if you manage your budget carefully. This budget allows for a comfortable lifestyle, including rent, groceries, dining out occasionally, and modest entertainment.
Switzerland. If you're under 45 and don't mind the idea of life in a small town, the village of Albinen in the Swiss Alps wants you — and wants to pay you $23,000, plus $11,500 for every child that moves with you. You'll have to live there for at least a decade, and undergo the rigorous process of becoming a citizen.
Many retirees wonder what it costs to live comfortably in Costa Rica. As a general guideline, we recommend that people moving here from the States, Canada, and Europe budget a minimum of $15,000 per year per person.
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.
40x Rent Rule
To find maximum rent using this rule, divide the household's annual gross income by 40. For example, a household that earns $80,000 per year can afford a maximum monthly rent of $2,000 (80,000 ÷ 40 = 2,000).
In order to comfortably retire in Puerto Rico, you will need approximately $2,000 per month. The cost of living in Puerto Rico is 8.12% lower than it is in America, making retirement in this country a much more affordable option.
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.
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.
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.
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.
Retiring abroad on $1,000 per month doesn't mean sacrificing quality of life. Many countries offer excellent health care, infrastructure and amenities at a fraction of the cost compared to the U.S. The cheapest places to retire abroad include Panama, the Philippines, Portugal, Malaysia, Mexico, Thailand and Vietnam.