THE cost of retirement in the United States varies from state to state, but can cost up to $73,140 per year in a place like New York. This is one of the reasons why many Americans consider retire abroad where they can live on a lower income without sacrificing their quality of life.
As of November 2023, the average monthly Social Security check was $1,710.78, according to the Social Security Administration. In 2022, around 48% of retirees declared expenses less than $2,000 per month.
With that kind of budget, retiring on board could allow your money to go further, depending US News & World Report.
To determine the list of countries where you can budget as little as $1,000 per month, U.S. News and World Report spoke with travel and budgeting experts who have lived and visited more than 50 countries and track the cost of life around the world. The analysis also took into account travel costs such as flights, taxes and visas.
A 2023 report from Moving to Spain named Portugal the best European country for retirement. It is one of the most affordable European countries due to the low cost of living.
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7 of the Most Affordable Places to Retire Abroad
- Malaysia
- Mexico
- Panama
- Philippines
- Portugal
- Thailand
- Vietnam
Portugal has long been a haven for retired expats. A Moving to Spain Report 2023 named him the best European country for retirement. It is one of the most affordable European countries due to the low cost of living.
On average, the cost of living, excluding rent, is nearly 29% lower than in the United States, according to Smart asset.A
HAS retire in Portugal, U.S. citizens must apply for a residency visa. According to Solutions for global citizensThe process is relatively simple and requires applicants to provide a valid passport, proof of income, health insurance, and a criminal background check.
Panama is one of the most affordable places to retire abroad.
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U.S. News and World Report highlighted Panama as a country that offers U.S. retirees the chance to explore a new country while being just a short plane ride away.
“Panama has much lower living expenses than the United States, particularly for housing,” the report said.
On average, the cost of living in Panama is 35.4% lower than in the United States, according to Number. And rent in Panama is also 52.1% lower on average.
Panama is also considered expat-friendly because you only pay taxes on the income you earn from Panamanian sources, according to PricewaterhouseCoopers.
To retire in Panama, you must have a monthly pension of at least $1,000, a clean criminal record, be at least 18 years old and apply in person in Panama, according to the the country's embassy.
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