The Best Global Destinations to Retire on a Budget

WHITE PLAINS—You’ve worked hard all your life and now you’re looking forward to retirement. Maybe you’ll sell your home and relocate, but if you’re on a tight budget, a global location could possibly offer you less expensive options and a better lifestyle.

According to the U.S. Social Security Administration, the average monthly Social Security retirement benefit this year is $1,976. With home prices and rents still escalating across America, your benefits may be barely enough to cover the costs of living.

Expatsi, an international research and tour group dedicated to helping people find affordable global living destinations, recently compiled a list of 10 countries where one could easily retire on just $2,000 a month.

Topping their list is Portugal, which ranks in the top 25% on the healthcare and safety index and seventh on the global peace index. After just three months of living there, expats can access the national healthcare system. Private health insurance is typically available for just 190 Euros ($216) a month for a couple.

Retirement visas are available for those with a monthly income of at least 760 Euros ($866). After just five years, you can convert your residence into EU citizenship and travel easily throughout Europe.

Popular areas include the Algarve region in the south, known for beautiful beaches and hot summers. Coastal cities like Lisbon and Porto have milder weather and a wealth of options for arts, food, wine, and culture.

Antonio Barbosa, a member of NAR as well as FIABCI-USA, the international real estate federation, recommends that anyone interested in living abroad should rent first before jumping into buying something. “If they’ve never been here before, they may want to stay in hotels in different locations to see which areas they like the best,” he said. “Then they can think about renting an apartment for at least six months to experience local life before purchasing.”

Barbosa is the owner of Infinite Solutions real estate in Valenca, Portugal and is a Certified International Property Specialist. Depending on the region, he said, apartment rents could range from about $700 a month in Minho in the north to $2,000 a month in Lisbon, the capital city located in the southwestern part of the country. “Lisbon and the Algarve can be very expensive, as they are prime tourist areas,” noted Barbosa. “But there are many other beautiful areas off the beaten path that offer more affordable living options.”

He recently helped a family of five move from Utah to a four-bedroom, four-bath home in the Minho area for just 1,800 Euros per month rent, or $2,054. Both parents are utilizing the country’s “digital nomad” visa, a temporary residence permit allowing non-European citizens to live and work remotely in Portugal for up to one year, with the possibility of extension.

Once expats have an address, they can apply for a loan if they want to purchase property in Portugal. Typically, banks require a 30% down payment and the maximum age for obtaining a mortgage is 75.

Home prices also vary according to region, from an average of just $100,000 for a one-bedroom condo to $300,000 for a single-family home in a non-tourist area. In heavily touristed regions, the prices for single-family homes can range from $400,000 to over $1 million plus.

Barbosa indicated that most of Portugal’s expats are from the U.S. and Canada. “The cost of living is a lot lower here, as are taxes on homes, restaurant meals and entertainment,” he said. “Of course, we also have beautiful weather, and Portugal is a very welcoming country.” English is widely spoken there as well.

Compared with the rest of Europe, Portugal is one of the most affordable European countries. “A typical dinner with wine, dessert and coffee may cost you just over 10 Euros ($11.40),” added Barbosa.

A former U.S. resident, Barbosa has lived in New York City, New Jersey, Orlando, Chicago and San Francisco. However, he has called Portugal his home for more than 25 years, and his parents also reside there.

“There are a lot of Americans now who want to live overseas,” said Christina Prostano, Chair of HGAR’s Global Business Council and Principal of the Global Collective Team at Compass in Manhattan. “Some are retiring, others want a more affordable lifestyle and there are those leaving the U.S. due to the political or economic climate.”

Prostano agrees that Portugal has always been a very popular destination, as more Americans are seeking out a simpler, less stressful lifestyle. “Italy and Spain are also up-and-coming popular retirement locations,” she added. The International Living report recently included Italy, Spain, Greece, and Malaysia as other affordable retirement options.

“However, English is not as prevalent in Italy or Spain, so U.S. residents might also want to consider other countries such as the Netherlands, where almost everyone speaks English,” added Prostano. “Besides cost-of-living expenses, other concerns are the distance to hospitals and the quality of healthcare.”

Additional countries on Expatsi’s list of affordable retirement options include Costa Rica, Panama and Mexico in Central America. Costa Rica’s weather ranges from tropical on the coasts to mild in the mountainous regions. Popular destinations include Escazu, Santa Ana, Los Yoses, as well as the central Pacific coast and the Guanacaste region.

Panama offers similar weather and just a $1,000 a month income qualifies you for a retirement visa. The country’s healthcare includes a John Hopkins medical facility. While Mexico has had its share of negative publicity, the country is currently home to some 62,000 Americans. Mexico City, Lake Chapala and Monterrey are popular areas among retirees. Monthly income requirements are a bit higher at $3,100 to qualify for a retirement visa.

Fifth on the list is the Czech Republic, which is ranked in the top 10% of countries for safety and healthcare. The nation is also known for its reliable public transportation with easy access to Germany, Austria and Poland. France also offers affordable retirement options outside of Paris. Marseille, the largest city on the French Riviera has been attracting retirees for years, as well as Caen in Normandy. France’s healthcare is ranked in the top 25% of countries.

Listed at number seven, Thailand has become increasingly trendy for people of all ages. Cities like Chiang Mai, Bangkok and Koh Samui are likely destinations for renters and buyers. The monthly income requirement is also lower here at just $1,825. Studio apartments in the capital city of Bangkok rent for about $600, and one-bedrooms for $500 a month in less populated areas.

“Thailand can be a great affordable option, with some wonderful deals on apartment rentals,” added Prostano. “You can start planning where you might want to retire globally by taking vacations in different countries and determining which ones best suit your lifestyle.” Prostano’s team receives inquiries all the time about Portugal, Spain and Italy.

Recently named the “happiest country in the world,” Finland ranked as the eighth best global retirement option. It’s listed in the top 10% for safety and infrastructure and offers free college education and universal healthcare for all. English is widely spoken as well. If you have an income of at least $1,100 a month, Finland might be the place for you. The capital of Helsinki is more expensive, but cities like Espoo, Turku or Tampere offer more affordable choices. The Northern Lights are listed as the best free entertainment.

Coming in at number nine, the Philippines islands are one of the least expensive countries in the world. Just $800 a month in income will qualify someone for a retirement visa. Americans’ favorite areas are Davao City, Tagaytay or Cebu City. Food and healthcare are also very reasonable.

Ranked 10 on the list is Uruguay in South America. Located between Argentina and Brazil, the country has four seasons with mild weather year-round. Most newcomers choose to live in Montevideo, the capital on the coast, or resort destinations such as Atlantida and Punta del Este. A monthly retirement income of $1,500 is required.

Prostano noted that many people interested in eventually retiring to another country will purchase a rental property there first. “That gives them the opportunity to enjoy a vacation home abroad and also monetize the investment by renting it out to tourists,” explained. “They can always decide later if they want to relocate there.”