The Eight Best Countries for Americans to Retire (Besides the US)
Everyone has a different vision of what retirement looks like. Some dream of traveling the world, while others look forward to napping for decades. The one thing more and more people agree on? It’s a challenge to afford retirement in the United States.
Only half of Americans have any retirement savings at all , and most of those who do don’t have enough to live on. In fact, more than 17 million Americans over 65 are financially insecure. Meanwhile, the cost of living in the U.S. continues to rise, even as safety nets like Medicaid are once again losing their threads . Add it all up, and it’s no wonder more and more people are considering retiring overseas, in countries where their dollars will go a lot further.
However, a low cost of living does not mean that a country is a great choice for retirement. You need to find a balance between cheap living and other factors, such as health care and safety. You also need to find countries where the income requirements for residency are low enough that your small savings will allow you to move there, and if you are going to rely solely on Social Security payments in retirement, you need countries where the cost of living is below the average payment, which is currently $1,976 .
Taking all these factors into account, and recognizing that everyone’s needs are different, we’ve compiled a list of eight countries where you can retire on a budget and still live well.
Costa Rica
A single person can live on about $900 a month (not including rent) in Costa Rica, which is considered a modern, stable country with an excellent health care system. There is already a strong American expat community there, which can make the transition smoother if you don’t speak Spanish well and/or haven’t lived abroad before. Of course, all those expats also drive up the cost of living , so don’t expect your budget to stretch indefinitely, but it will still be significantly cheaper than almost anywhere in the U.S.
Required income: $1000 per month
Panama
You can live in Panama for about $800 a month (not including rent), and the U.S. dollar is the country’s official currency, so you won’t have to worry about converting your cash. Panama openly courts American retirees, offering a ton of discounts and perks to entice them there. You’ll need to apply for a visa in Panama, you’ll need a Panamanian lawyer, and you’ll probably have to learn Spanish, but once you’re there, you’ll enjoy a stable, thriving culture and a relatively easy trip back to the States if you want to visit family and friends.
Income Requirement: $1,000.00 per month plus $250.00 per month for each dependent.
France
Believe it or not, one of the world’s most popular tourist destinations is also a fantastic place to retire. The cost of living (not including rent) is a bit higher at around $1,100 per month , but you’ll get access to some of the best healthcare in the world for a fraction of what it would cost here. The U.S. also has a tax treaty with France, so your retirement accounts will be taxed at U.S. rates rather than the much higher French rates. France is a complicated country, though, so you’ll likely need to hire a French lawyer to help you navigate the retirement process there, and you’ll definitely need to learn French.
Income requirement: three times the minimum wage (currently about $2,100)
Malaysia
Malaysia is incredibly affordable – although the income requirements are higher, the cost of living for a single person is only about $550 per month (not including rent), and rent is not very expensive either. The country boasts a top-notch healthcare system, and English is well supported there. But beware: getting to and from Malaysia is not always easy, so you won’t be flying back and forth between the US and your nursing home. And it’s a pretty hot and humid place all the time, so don’t choose it if you want to avoid sweating.
Income Requirement: $2,370 per month plus approximately $83,000 in assets
Spain
Like France, Spain isn’t often discussed as a retirement option – although it should be. While the income requirements are relatively high, the cost of living (without rent) is a comfortable $850 or so , giving you access to a beautiful country with a rich culture that also offers very low crime rates, excellent healthcare, and (probably goes without saying) incredible food and lifestyle.
Required income: $2,700 per month.
Ecuador
Ecuador is super cheap, about $535 a month, not including rent. Plus, its official currency is the US dollar, so you don’t have to worry about the exchange rate. If you’re looking for a lifestyle focused on natural beauty, this is the place to be. The healthcare system is surprisingly excellent (and affordable, even if you have to pay for private insurance).
Required income: three times the single basic salary ( $470 per month ), or about $1,410.
Portugal
Portugal is a great country with great infrastructure, excellent healthcare, and plenty of beautiful places to call home. Not including rent, the cost of living in the country is just $805 per month , but keep in mind that you won’t qualify for free national healthcare until you’ve lived in the country for at least five years, so be prepared to pay for private health insurance as well. On the plus side, Portugal overhauled its tax system a few years ago, offering 10 years of tax breaks and exemptions for qualifying expats, which can help offset those costs. English is also widely spoken, making it an easy place to move to.
Required Income: $1025 per month
Thailand
If you’re saving every penny, Thailand might be the perfect option: the cost of living is very low at $621 per month (excluding rent), the healthcare system is excellent (and affordable), and the country is beautiful. However, Americans are likely to experience a bit of culture shock, so it’s probably a good idea to visit the country first to make sure you can adjust and really enjoy your very cheap retirement.
Required Income: $2,000 per month