These expat retirement destinations could make your golden years a blast!
Let’s just be honest, folks! Retiring nowadays in the US is an expense many fear they can’t afford. And the sad fact is that Americans will need roughly 70% to 80% of their pre-retirement income to live out their retirement comfortably.
Given that the required amount for your golden years can be prohibitively high, plenty of people have started relocating to more budget-friendly cities and, in some cases, to more affordable countries, including some incredible expat retirement destinations.
According to the Social Security Administration, almost 450,000 people received their retirement benefits outside the United States at the end of last year, which is up from 307,000 back in 2008.
So here at Retirement In USA, we looked at the safest European countries, as measured by the Global Peace Index, and picked the ones from that list with the most affordable living cost. Which are the 4 most relatively peaceful expat retirement destinations that boast a cost of living of less than $2,000 a month? Continue reading to find out!
Costa Rica
-Global Peace Index Score: 1.73
-Rent for a One-Bedroom in City Center: $491 per month
-Utilities: $63 per month
-Internet: $46 per month
-Per-Capita Health Care Spending: $1,622 per year
Not far from Panama lies a Central American paradise catering to US expats. Frequently known as “the Switzerland of Central America,” this expat retirement destination is renowned for its safety, neutrality, strong banking system, and excellent health care.
Costa Rica offers a range of geography and climates, from friendly beaches to more extraordinary mountain towns. It’s an outdoor enthusiast’s paradise, with incredible outdoor activities like golfing, hiking, surfing, fishing, scuba diving, and outdoor yoga. So, if you’re looking for hassle-free golden years, look no further than this expat retirement destination’s national motto of “Pura Vida,” or pure life.
A public healthcare system charges up to 11% of your reported household income, allowing you to get high-quality healthcare services. Many expats combine this public health care with the occasional private payment when they want expedited same-day service for a test or treatment.
And this country’s health care system includes many US-educated doctors and partnerships with hospitals from the US. There’s also no foreign income tax. If you check out the book “Happier Than a Billionaire” by Nadine Hays Pisani, you can learn about a couple who quit their jobs, moved to this expat retirement destination, and now live the zero-hour workweek.
Now, food prices vary based on the town or city you move to and whether you’re stocking up on affordable local vegetables or caviar. But nationwide, the cost of living, excluding rent, is 37.5% lower than in the United States, and rent is also 71.0% lower.
Malaysia
-Global Peace Index Score: 1.47
-Rent for a One-Bedroom in City Center: $345 per month
-Utilities: $44 per month
-Internet: $27 per month
-Per-Capita Health Care Spending: $1,194 per year
With approximately 880 islands, this expat retirement destination is famous for its pristine white sandy beaches. Water sports like sailing and diving flourish here, and untouched rainforests make for delightful outdoor adventures. Malaysian health care is strong.
In fact, it has grown into a hotspot for medical tourism. Resident expats can anticipate high-quality care at 1/8 of the price of average American spending. On top of that, this expat retirement destination doesn’t charge an income tax on foreign-earned income. Most Americans are delightfully surprised to find that English is the unofficial language of this country since the nation remained a British colony from the late 1700s to 1957.
Penang, for instance, has a powerful British influence and an expat population. It was among the first ports leased to the British for trading goals. While its location is much further from the US than other popular places on this list, it’s well-located to reach all of Australia and Asia.
Kuala Lumpur can offer you a modern city experience, which you can read in Lonely Planet’s “Kuala Lumpur, Melaka and Penang” by Simon Richmond and Isabel Albiston.
So does neighboring Singapore, which is excellent for weekend getaways. And the best part? This expat retirement destination offers a cost of living 51.9% lower than the US, excluding rent. But rents are also 79.4% lower.
Panama
-Global Peace Index Score: 1.88
-Rent for a One-Bedroom in City Center: $730 per month
-Utilities: $86 per month
-Internet: $44 per month
-Per-Capita Health Care Spending: $1,193 per year
Gorgeous Caribbean beaches, a vibrant cultural capital city, charming mountain towns… What’s not to like about this expat retirement destination? Panama isn’t the most affordable country on this list by a long shot. But it still boasts plenty of benefits for seniors looking to relocate in retirement.
The visa and residency programs available to Canadians and Americans are extremely welcoming. For instance, you can qualify for a pensionado visa if you earn at least $1,000 monthly in pension income.
Through this expat retirement destination’s visa, Americans can be eligible for residency by opening a bank account with $5,000 and opening a business there, getting a job in Panama, or buying property worth at least $10,000. As far as the climate goes, Panama is tropical and sunny, yet outside the hurricane belt.
And it’s a quick flight from Panama City back to the United States. One huge perk of living in this country is that it doesn’t impose taxes on money earned outside its borders. So you’re off the hook for income taxes in your new homeland. According to data, average healthcare spending falls below 1/5 of America’s per-capita costs.
And Panama uses the US dollar as currency, which is fortunate but also prevents exchange rate hassles. Even so, the cost of living is far lower in Panama than in our country. The official language is Spanish, although some people also speak English, especially in touristy spots.
“Escape to Paradise” by Richard Detrich details a complete, firsthand account from a couple who relocated and serves as mandatory reading for any Americans considering moving to this expat retirement destination.
As in any budget, you could lower or raise each of your expenses, depending on what you’re looking to spend. The cost of living, excluding rent, is 31.7% less in Panama than in the US, and rent is 58.5% more affordable.
Italy
-Global Peace Index Score: 1.64
-Rent for a One-Bedroom in City Center: $691 per month
-Utilities: $173 per month
-Internet: $29 per month
-Per-Capital Health Care Spending: $4,038 per year
The home of “la dolce vita,” this expat retirement destination offers a laid-back, mellow lifestyle, world-renowned cuisine and wine, a rich culture of art and history, and surprising affordability. That is, once you get away from the major cities and tourist hot spots.
The visa process for American citizens is among the easiest in Europe because Italy struggles to combat its declining population. You can get Italian citizenship simply by providing proof a direct ancestor was born in Italy. And for other visa options, you can see the overview at Immigration Italy. Many towns are so desperate for new residents that they offer to sell houses for 1 euro to foreigners willing to move in and renovate them.
Others are willing to pay outsiders up to $33,000 to move there. So you have quite a few options. Now, health care isn’t as powerful in Italy as in some Latin American countries that maintain close ties with hospitals in the US and healthcare companies.
But, high-quality health care is available through private insurance and the public health care system, costing around 1/3 of the average American’s health care spending annually. The only downside is that, as with other countries on this continent, this expat retirement destination charges all residents taxes on worldwide income.
Italy’s overall cost of living is 17.3% lower than in the States, not including rent. But, rent is 55.8% more affordable than in the United States. And like in the US, the overall cost of living is much cheaper outside major cities and tourist spots.
Have you considered any of these expat retirement destinations? Be sure to share your thoughts with us in the comments section. And if you found this article helpful, you might also enjoy: 11 Charming Places in the US With Large Senior Populations
