I was having a discussion with a friend about the cost of living in retirement. I’ll have a future post breaking down some lower cost of living areas in the United States. However we got on the topic of other areas in the world, and how it is possible to retire in countries overseas on very little. Here is a quick rundown on a few places that could work if you are considering spending your golden years abroad.
Cost of Living In Retirement
But first, let’s set the stage. It can cost a wicked-amount of money in retirement here in the states depending where you are. Retirement costs can vary wildly from state to state. Picture this: in bustling New York, you could be shelling out a whopping $73,140 a year just to cover your retirement expenses! Nope. I mean I wouldn’t live there anyway. I mean I’d visit the city that never sleeps, but no wonder many savvy retirees are eyeing up international destinations where their hard-earned cash can go a whole lot further.
Social Security Income
Here’s a quick snapshot of the numbers: as of November 2023, the average monthly Social Security check weighed in at around $1,700. And get this – nearly half of retirees in 2022 reported living comfortably on less than $2,000 a month. This is how retiring abroad could totally boost your budget, making that money go the extra mile!
Some Lower Cost of Liver Areas Overseas
According to the sharp minds over at U.S. News and World Report, there are plenty of countries out there where you can kick back and relax on a budget of just $1,000 per month. How’s that for stretching your retirement dollars?
So, where are these budget-friendly havens? Let’s take a quick tour:
- Portugal
- Panama
- Malaysia
- Mexico
- Philippines
- Thailand
- Vietnam
Is Portugal Your Future Home?
Now, let’s zoom in on Portugal. I’ve heard stories of several people retiring here. This gem of a country has long been a top pick for expat retirees, and for good reason! With living costs almost 29% lower than in the U.S., it’s a paradise for those looking to live well without breaking the bank. Plus, the process of retiring in Portugal is as smooth as sipping on a glass of fine port wine, or a Monster Energy, whatever is your jam – just a few documents and you’re all set!
Is Panama Your Jam?
Next stop on our tour, Panama! (Que the sweet Van Halen track!) Here’s the lowdown: Panama offers retirees a chance to embrace a new culture while still being a short hop away from home. Living expenses in Panama are a staggering 35.4% lower than in the U.S., with rent costs plunging a whopping 52.1% below the American average. And here’s a sweet bonus: you’ll only pay taxes on income earned within Panama itself. Talk about a win-win!
Retirement Abroad Is Possible
Are you ready to pack your bags and start your retirement adventure? Just make sure you’ve got a monthly pension or drawdown of at least $1,000, no criminal record, and a passport itching for some stamps. Oh, and don’t forget to apply in person in Panama – it’s all part of the exciting journey to your new life abroad!
Retiring abroad isn’t just a dream, it’s a passport to a world of affordable luxury and endless possibilities. Let me hear from you. Bon voyage! Rock On and Horns Up, Friends! \m/ \m/
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