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.
Low-income people may retire by cutting their expenses, downsizing their homes, taking Social Security benefits, and/or applying for financial assistance through government benefit programs.
Thailand. Is it possible to retire in Thailand and keep the costs in check? Certainly! It's another top choice for digital nomads with an achievable $500 monthly budget, focusing on affordable accommodation.
Unless you have a secret plan to get free money or you're lucky enough to hit the lottery, not saving enough for retirement will leave you scrambling to get by in old age. At the very least, you'll need to work longer or make serious adjustments to your lifestyle to get by.
If you're unable to afford a nursing home or assisted living facility, you aren't out of senior care options. Some seniors get by with a mix of family caregivers, in-home care, and adult day health care.
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.
Costa Rica
Once settled, most retiree couples can live well within the country for as little as $2,000 per month.
Seniors can save money on housing by choosing to stay in their own homes and becoming a member of a local virtual retirement community. Virtual retirement communities are grassroots, nonprofit organizations that provide older adults with a variety of accessibility services.
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.
The $1,000 per month rule is designed to help you estimate the amount of savings required to generate a steady monthly income during retirement. According to this rule, for every $240,000 you save, you can withdraw $1,000 per month if you stick to a 5% annual withdrawal rate.
Downsize or Sell Assets
Selling the house or downsizing are the practical, popular solution for seniors to finance their senior care and future expenses when they are short on funds.
Has your income declined or have you experienced a loss of financial resources? You may be able to get additional income through the Supplemental Security Income program, which helps seniors and the disabled who have limited income and financial resources.
You may have to rely on Social Security
Many retirees with little to no savings rely solely on Social Security as their main source of income. You can claim Social Security benefits as early as age 62, but your benefit amount will depend on when you start filing for the benefit.
According to the Social Security Administration, or SSA, the monthly retirement benefit for Social Security recipients is currently $1,783.55 in 2024 on average. Several factors can drag that average up or down, but you have the most control over the biggest variable of all — the age that you decide to cash in.
20 percent of adults ages 50 and over have no retirement savings at all. 61 percent are worried they will not have enough money to support themselves in retirement. Perhaps most startling, only 40 percent of men who are regularly saving for retirement believe they are saving enough. For women the number is 30 percent.
The results
The top two states to retire in according to our formula are — drumroll please — Alaska and New Hampshire!
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.