With our average lifespans increasing to 78 years old, the idea of having enough of a nest egg to retire can seem daunting. But what if you were to retire abroad?
Retiring in another country has benefits you may not have thought of previously. Better and cheaper healthcare, a lower cost of living and, more simply, a change of pace. A change that may involve warmer weather and more relaxation. Luckily, there are several countries that offer all the above.
Factoring in an average of $1,360 per month for Social Security and $200,000 saved in your retirement accounts, you should be able to live for 30 years in any of these exotic locales.
Beautiful scenery, government benefits for retirees, excellent healthcare and discounted public transport make Ecuador an ideal choice for American retirees. According to Numbeo, for just $486/month, you can live in a large, furnished 900-square-foot studio. Compare that to any U.S. city and it seems like a steal. In fact, Ecuador is 61 percent cheaper than living in New York City.
The government of Nicaragua offers expats a variety of economic incentives including a sales tax exemption on construction materials if you’re building a home. At press time, gas is less than a dollar and rent for a 900-square-foot apartment is as low as $275/month. The only downside? The U.S. State Department still urges caution against crime.
It’s much farther away from the U.S., but perhaps that’s a good thing. The average monthly expense in Bangkok is $554. You can snag a retirement visa if you’re over 50 and meet income standards. Bangkok is one of Thailand’s more expensive areas, but it’s still up to 60 percent cheaper than any major U.S. metropolis like Chicago, Boston or New York.
A 900-square-foot furnished apartment in this beach-side haven runs as low as $800 a month. Crystal clear water, sandy beaches and warm weather are all reasons to retire to this beautiful country. For those over 45 years of age, any income earned outside of Belize is 100 percent tax free, as long as you meet a $2,000-a-month minimum.
According to our friends at Numbeo, the monthly expense for one person is $720/month. While Panama City is only 40 percent lower than the U.S cost of living, it’s very safe. In addition, the Pensionado Program gives foreign retirees discounts on flights, utilities and healthcare.
6. Costa Rica
Costa Rica has always been a popular destination for retirees, and it’s easy to see why. There’s a large expat community and it’s considered one of the happiest and safest countries in the world. Monthly expenses are only $666 per person. Rent runs as low as $621 in the capital of San Jose.
Malaysia may not be the first place that comes to mind, but it’s worth considering for its warm weather and low cost of living. Monthly expenses amount to an average of just $452 in Kuala Lumpur. Retired folks can get a visa through the Malaysia My Second Home Program as long as you have at least 350,000 Malaysian ringgits ($78,687).
If Asia and/or Central America don’t whet your appetite, there’s always Spain. Enjoy the flavor of Europe without the hefty price tag. Monthly expenses for one person in Madrid average out at $694 a month. A visa is easy to obtain if you can demonstrate proof of income and show that you’re free of any illness that would be a threat to public health.