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At this point, most of us know that the cost of living has risen to a ridiculous level. It’s hard to afford rent and monthly mortgages, but it’s even worse for retirees.
Generally, retirees live on a set budget every month, so if the cost of living keeps rising in the U.S., how do they keep up? This is a big reason why so many American retirees leave the country and settle in more affordable parts of the world.
But what parts are more affordable? What destinations American retirees are flocking to? I chose affordable countries where an American resident could live on $2,000 a month or less when curating this list. Each of these countries also has a vibrant American retiree community.
Can you see yourself retiring in one of these destinations American retirees prefer? Let us know in the comments!
1. Puerto Rico
Technically, Puerto Rico isn’t a country but a territory of the United States. This makes it a lot easier for U.S. citizens to visit this beautiful island. I will say – I am a bit biased since this is where my family is from, and I run to the island whenever I can.
It’s a popular destination for retirees. About a quarter of the population in Puerto Rico is 65 years or older. Retirees are drawn to this island because of its rich culture, low cost of living, and ease of travel. You can find rent for as low as $400 a month, depending on the area.
2. Costa Rica
Costa Rica has been a popular spot for American retirees for decades. While the cost of living in Costa Rica has increased because of the demand, it’s still more affordable than retiring in the States.
Plenty of retired couples live in Costa Rica for $2,000 to $2,500 a month—and sometimes less. A one-bedroom apartment in Costa Rica costs about $541.
3. Mexico
You probably know someone who has moved or wants to move to Mexico. It’s a very popular country for Americans, most likely because of the lower cost of living and proximity to the U.S.
The cost of living in this country depends heavily on where you live. For instance, you can expect to pay more in places like Mexico City or Guadalajara than in Puebla.
4. Guatemala
Unsurprisingly, Americans are retiring in many Latin American countries, like Guatemala. This stunning country is affordable, full of nature, and has stunning weather.
While researching, I noticed both young and older adults living in Guatemala on less than $1,000 a month. If you make more money, you can live in luxury or pocket the rest to travel. The weather in Guatemala is also unbeatable. WeatherSpark says the best time to visit Guatemala for clear skies and warm weather is from late November to mid-April.
5. Vietnam
U.S. dollars go a long way in Vietnam. As long as you can handle a completely new environment, culture, and language, Vietnam is an excellent spot for American retirees.
Living in a beach town in Vietnam doesn’t cost you an arm and a leg. You can find a rental for as low as $600 a month.
6. Thailand
Thailand is also known for its affordability and beauty. There are so many national parks within this vibrant country including Khao Sok National Park, Khao Yai National Park, and Erawan National Park.
When you’re not lounging by the beach or traveling through a national park, you can enjoy a cheap, hot, and delicious meal. The cost of living in Thailand is significantly low. Without rent, a family of four can live off of $2,134.90.
7. Portugal
Not all Americans are retiring in Latin America or Asia. Another popular spot is Portugal in Europe. This lovely country is easy to retire in. The visa process is simple and only requires a steady pension.
The costs of retiring in Portugal depend on the city. For instance, in Lisbon, you can expect to pay about $1,315.57 for an apartment in the city center. You can cut your costs by renting outside of the city center.
8. Spain
Retiring in Spain is nothing new. It’s been very popular for retirees for decades and continues to be. Not only is Spain affordable, but it’s also in a perfect location. You can easily take a train or plane to a neighboring country at a low price.
Spain is also walkable, so you won’t need to buy a car. This, of course, depends on the city. According to Get Golden Visa, you can retire in Spain with a monthly budget of $2,000-$2,200.
9. Panama
Panama is another affordable option for retirees. It isn’t as inexpensive as other options like Mexico or Guatemala, but it is much cheaper than retiring in Florida.
For instance, according to Numbeo, the cost of living in Panama is 34.1% lower than in the United States. Still, without rent, a family of four will need nearly $3,000 a month. Living as a single person, the expenses are a lot lower at slightly under $800.
10. Belize
Retiring in Belize is easy. It’s also what I call a hidden gem. Not many people think of Belize when near retirement, yet it’s an excellent option for Americans.
First, the official language of Belize is English, so you won’t need to deal with a big language barrier. Still, the biggest dialect in Belize is Belizean Creole, which can take some time to get used to.
11. Romania
Romania is becoming increasingly popular as a tourist destination and retirement destination. This beautiful Eastern European country has a lively culture, stunning nature, and incredible affordability.
The cost of living in Romania is very cheap, especially for a couple. One person can expect to spend $655.80 on essentials, not including rent. But rent in Romania is 75.7% lower than in the United States, so you can expect to pay as little as $300 to $700 per month, depending on location and accommodation style.
12. Finland
Finland isn’t that much cheaper than the United States, but it does come with a lot of perks. The country has an incredible healthcare system and lots of access to nature.
So, how does it compare to the United States? Well, the cost of living is only about 3% lower than in the United States, but rent is 50.8% lower in Finland.
13. The Philippines
The Philippines isn’t a very popular choice but is gaining traction because of the country’s low cost of living. It’s also relatively easy to retire in the Philippines, thanks to the Special Resident Retiree’s Visa (SRRV).
The SRRV is for adults 35 years or older with retirement benefits. But how cheap is the Philippines? According to Numbeo, the cost of living is 54.7% lower than in the United States. Rent is significantly cheaper at about 80% lower than in the U.S.
14. Croatia
Croatia is a hidden gem that doesn’t get the love it deserves. This absolutely breathtaking country is affordable and filled with activities that retirees love like wildlife viewing and beaches.
Not including rent, a single person only needs about $800 to live comfortably in Croatia. Rent in the center city goes for 588.59€, which is about $650.
15. Japan
Can you imagine retiring in Japan? This scenic country has a lot to offer retirees. For example, large parts of big cities like Tokyo are very walkable, making it easier to lead a more active lifestyle while saving on automotive costs.
Retiring in Japan isn’t the easiest for U.S. citizens as Japan has strict immigration policies. However, if you can, you’ll enjoy the low cost of living. A single person only needs about $1,000 to live in Tokyo, not including rent.
16. Malaysia
Malaysia is a huge country, meaning retirees have plenty of cities and towns to choose from. Over 34 million people live here, and many retirees move to Malaysia with the Malaysia My Second Home (MM2H) program.
As an American, you don’t need to make a lot of money to live in Malaysia. For instance, the cost of living in Malaysia is 54.0% lower than in the United States. Rent is exceedingly inexpensive at around 79.9% lower than in the United States.
17. Colombia
A lot of Americans also move to Colombia for the country’s low cost of living and lively culture. You’ll never get bored in this country as there is always something to do and see. It’s also near plenty of other Latin American countries, meaning flights tend to be pretty cheap.
So, what can you expect to pay while living in Colombia? Rent is about $320 for a one-bedroom, but it varies greatly depending on the city and the size of the space.
18. El Salvador
El Salvador has also become a popular move for American retirees. The country is affordable, beautiful, and safe. It’s also easy to navigate, considering El Salvador uses the U.S. dollar, so Americans won’t need to learn a new currency.
Now, onto the cost of living. The cost of living in El Salvador is nearly 45% lower than in the United States. A one-bedroom apartment in the city center is about $690.47.
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