This article looks at the 15 best countries for a couple to live on only Social Security. You may skip our detailed analysis on the search for global retirement alternatives and go to the 5 Best Countries for a Couple to Live on Only Social Security.
America’s Retirement Crisis: A System in Decline and the Search for Global Alternatives
According to the Mercer CFA Institute Global Pension Index 2023, the U.S. receives a mere passing grade when it comes to its retirement system. Graded “C+”, the system has “some good features but also major risks and shortcomings that should be addressed”. No wonder the viability of the entire Social Security program is in question, with funds expected to be depleted by 2035, according to estimates by the Social Security Board of Trustees. Even today, it is failing US workers, pensioners, would-be retirees, and possibly all future generations. With too many inequities in the system, workers are deprived of economic security during the “golden period” of their lives.
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According to an analysis by the D.C.–-based public policy think tank called Third Way, the past 300 years have witnessed retirement savings for the top 10% of earners increase by more than 400%. On the contrary, the bottom 20% of earners received an increase of just 30%. This widening wealth gap is forcing many people to consider retirement in places outside of the USA. American Citizens can receive their Social Security benefits outside of the USA in eligible foreign countries.
Many retirees do not consider the US to be feasible for retirement on their Social Security checks. It’s also true that the elderly in the country are suffering a higher rate of poverty than their peers in other high-income countries. According to the Organization for Economic Co-operation and Development, 23% of Americans aged 65 and above live in poverty. This is 8% higher than the US, 11% higher than Canada, 18.6% higher than France, and 19.9% higher than the Netherlands. On the contrary, countries like The Netherlands have one of the best social security benefits systems in the world.
The Dutch pension system is quite robust, providing a high degree of sustainability and income security for retirees. Its strong three-pillar structure, comprising a state pension, occupational pensions, and private savings, ensures broad coverage and financial security for retirees. The US can learn from retirement systems such as that of the Netherlands, Iceland, and even Australia. BlackRock, Inc. (NYSE:BLK) CEO Larry Fink seems to agree, pointing to Australia’s superannuation system as a good model. Fink also believes that the US retirement age should be rising in line with life expectancy, the same way it does in the Netherlands.
A survey from Corebridge Financial and The Longevity Project highlights how 54% of respondents have goals to live up to 100. 40% of them aim to retire between the ages of 65 and 69. With the looming Social Security crisis and petty retirement savings, it’s hard to manage living in retirement for three decades.
BlackRock, Inc. (NYSE:BLK) is an American multinational investment company with a market cap of $124 billion. It offers investment, advisory, and risk management solutions. BlackRock, Inc. (NYSE:BLK) reported its second-quarter results in July 2024. The company beat earnings expectations with a reported EPS of $10.36, while expectations were $9.98. Owing to high ETF inflows, the company set a record with $10.6 trillion in assets under management in the quarter. Net income in the quarter rose by 10% to $1.5 billion, while operating margin rose to 37.5%, from 36.2% in the same quarter last year. Larry Fink quotes that the organic growth was driven by private markets, retail active fixed income, and flows into its exchange-traded funds, “which had their best start to a year on record.”
While we acknowledge the potential of BLK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BLK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
As Fink rightly points out:
“As a society, we focus a tremendous amount of energy on helping people live longer lives. But not even a fraction of that effort is spent helping people afford those extra years,”
Copyright: halfpoint / 123RF Stock Photo
Methodology
To compile the list of 15 Best Countries for a Couple to Live on Social Security, we began by using our previous research on the cheapest countries for retirement, safest and cheapest countries to retire, amongst other lists, to develop a list of countries. Next, we ranked them on their cost of living index, health rankings, and peace rankings to calculate an Insider Monkey score for each country. Countries were ranked in ascending order from the lowest to the highest scores.
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15. Mexico
Insider Monkey Score: 12
IM Cost of Living Index: 82.8
Number 15 on our list of best countries for a couple to live on Social Security is the expat-friendly country of Mexico. Retirees from the United States and Canada especially prefer this country for its proximity, affordable cost of living, warm weather, delicious foods, and mesmerizing locations. Some of the safest places to retire in Mexico are Merida, San Miguel de Allende, Querétaro City, and Campeche. Couples can retire in places such as San Miguel de Allende for $2,500 to $3,000, and live a comfortable lifestyle. Healthcare facilities are on par, and there are plenty of English-speaking doctors available.
14. Panama
Insider Monkey Score: 13
IM Cost of Living Index: 80.9
According to our cost of living index, Panama’s cost of living is 19% lower than the global average. Retirees can move to the country through the world-famous Pensionado retiree program. Qualifying retirees can avail some amazing perks retiring to this country, such as discounts on hospital visits, entertainment, and even travel. Some of the best places to retire in the country include Boquete, El Valle de Antón, and Santa Fe. Retired couples can live well under $3,000 here in the country.
13. Ecuador
Insider Monkey Score: 14
IM Cost of Living Index: 80.7
Next on our list of best countries for a couple to live on only Social Security is Ecuador. The cost of living in the country is 19.3% lower than the global average. Besides its affordable cost of living, Ecuador is also revered for its diverse natural beauty, welcoming culture, and diverse range of climates that it offers. Expats can retire to Ecuador through the Jubilado visa for retirees, available to individuals aged 65 and older. To qualify, applicants must meet certain criteria, including a steady monthly income, a clean criminal record, and fulfillment of other specific requirements.
12. Colombia
Insider Monkey Score: 18
IM Cost of Living Index: 71.5
One of the cheapest countries to retire on Social Security popular with expats is Colombia. Living expenses in the country are 28.5% lower than the global average, and a couple can comfortably live on $2,000 to $4,000 depending on their lifestyle choices. Expats can retire to Colombia through the Colombian Retirement (M) Visa. Besides its affordability, Colombia is also a retiree favorite for its excellent healthcare and diverse landscapes, including everything from tropical beaches to cool mountain towns. The country’s vibrant culture and welcoming communities also offer a rich and fulfilling lifestyle for retirees.
11. Bosnia and Herzegovina
Insider Monkey Score: 19
IM Cost of Living Index: 65.4
Bosnia isn’t just a cheap destination to retire to, it’s also one of the safest. From serene rivers and magnificent mountains to lush green forests, this country in the heart of the Balkans is a treat for retirees. The infrastructure is continually expanding, there is access to quality care, and overall retirees can enjoy a good quality of life. Its capital, Sarajevo, is a vibrant blend of the East and West. A retired couple can easily live within $2,500, with costs going down as one moves further away from the capital.
10. The Philippines
Insider Monkey Score: 19
IM Cost of Living Index: 45.6
Declared one of the happiest countries in Asia, The Philippines is an ideal retirement destination for those who only have their Social Security checks to depend on. It is also one of the easiest countries to retire. Expats can apply for the SRRV (Special Resident Retiree’s Visa) which allows multiple entry and indefinite stay in the country. Home to more than 7,000 islands, retirees will love it for its lush mountains, serene beaches, and vibrant cities.
9. Dominican Republic
Insider Monkey Score: 20
IM Cost of Living Index: 57.6
One of the best places to retire in the Caribbean is the Dominican Republic. Home to stunning Caribbean beaches, vibrant culture, and an amazing climate, the Dominican Republic stands out as a top choice for retirees with a fixed income. More than 5,000 Social Security checks were claimed from this country as of 2022, making it a popular overseas retirement destination.
8. Montenegro
Insider Monkey Score: 22
IM Cost of Living Index: 53.9
Next on our list of best countries for a couple to live on only Social Security is Montenegro. Located in Southeastern Europe, on the Balkan Peninsula, Montenegro is a promising option for the budget-conscious retiree. The cost of living in the country is 46.1% lower than the national average, and a retired couple can live a comfortable lifestyle under $2,200. Montenegro does not issue a retirement visa, but a temporary residence permit can be obtained for living here.
7. Indonesia
Insider Monkey Score: 23
IM Cost of Living Index: 59.3
Those who love islands can also consider the beautiful Indonesia for their golden years. Living expenses in the country are 40.7% lower than the global average, allowing retirees to live comfortably with access to all the amenities that they need. Bali is the favorite spot for expats, but Ubud, Semarang, and Canggu are some other nice options to consider.
6. Costa Rica
Insider Monkey Score: 26
IM Cost of Living Index: 94.6
Costa Rica is one of the best destinations to retire in the world for US citizens. From diverse microclimates to stunning natural beauty and a lower cost of living than the US, retiring to Costa Rica feels like a dream. Retirees can choose to retire in Central Valley, San Jose, or even Nicoya known as one of the world’s five blue zones. 900 residents in the region are over 90, highlighting how retirees can live a healthy and fulfilling life here.
5. Romania
Insider Monkey Score: 26
IM Cost of Living Index: 75.1
Another great country to retire is Romania. Beautiful scenery, affordable cost of living, and rich cultural heritage make it a great choice for retirees. Being an EU member state, retirees have access to modern conveniences as well as easy access to Europe. From the charming medieval towns of Transylvania to the scenic Carpathian Mountains and the serene Black Sea coastline, there are many options to consider when choosing one’s retirement destination.
4. North Macedonia
Insider Monkey Score: 29
IM Cost of Living Index: 46.4
Another safest and cheapest option to consider for retirement for seniors is the landlocked country of North Macedonia. The country’s Mediterranean climate, captivating history and culture, and picturesque landscapes attract retirees from around the globe. The cost of living in the country is 53.6% lower than the global average.
3. Bulgaria
Insider Monkey Score: 31
IM Cost of Living Index: 66.9
Making it to the third place on our list of best countries for a couple to live on only Social Security is Bulgaria. A country in the Balkans, Bulgaria allows expats to stretch their retirement incomes further. Living expenses in the country are 33% lower than the global average, and a retired couple can live easily on their combined Social Security checks. The country’s well-preserved historical towns, vibrant cities like Sofia and Plovdiv, and warm, welcoming communities provide an appealing mix of modern conveniences and traditional charm.
2. Vietnam
Insider Monkey Score: 32
IM Cost of Living Index: 40.3
Vietnam’s promising blend of affordable living, vibrant culture, and stunning natural landscapes make it a top choice for many retirees. Vietnam’s healthcare system is accessible and affordable, and there are many modern facilities available. Owing to its diverse landscapes, deep cultural heritage, and welcoming communities, Vietnam lands second on our list. While there is no retirement program offered by the country, there are alternative visas available that allow expats to live for more than six months.
1. Thailand
Insider Monkey Score: 34
IM Cost of Living Index: 47.8
Home to a large expat population, Thailand is the best country for a couple to live on only Social Security. Chiang Mai, Phuket, and Pattaya are some popular destinations within the country for retirement. Living expenses here are 52.2% lower than the global average, and a couple can retire easily here under $2,000. The best part about this country is that the healthcare system is both affordable and high-quality, allowing retirees to live a comfortable life.
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Disclosure: None. This article was originally published at Insider Monkey.