This article walks you through the 15 cheapest and safest countries to retire in. If you wish to skip our detailed analysis on a cheap retirement and places to retire on $1,000 a month, go to the 5 Cheapest and Safest Countries to Retire in.
Retiring Cheap
In a significant development, the US Dollar achieved a one-on-one equivalence with the Euro for the first time since 2002. This milestone was primarily driven by a rise in interest rates by the Federal Reserve, making investments held in dollars particularly attractive. Simultaneously, speculations about the state of the European economy, coupled with war in Ukraine, its exposure to European nations, and the energy crisis have all been successful in raising concerns amongst investors.
According to Bank of America Corporation (NYC:BAC) experts, sticky price pressures are making it harder for central banks to commit to their target inflation rates. In turn, it’s going to impact how much money is worth in different countries, strengthening the dollar even further. In lieu of this, Bank of America Corporation (NYC:BAC) recently screened S&P companies to assess their correlation with the strength of the dollar. Results state that the rising US dollar is forecasted to cut the earnings of S&P 500 companies by a combined $100 billion this year. However, it isn’t all bad news, least of all for retirees.
For those looking to stretch their retirement savings further, relocating abroad seems like the best option. This is because the strong dollar is helping retirees stretch their dollar incomes further outside the United States. Slovakia, Dominican Republic, and Thailand are some of the cheapest countries for retirement retirees have been considering. Statistics agree, with Social Security Administration noting that the number of Americans drawing their benefits from overseas have significantly risen over the years. The last three years have witnessed this number growing from 413,000 to 760,000. Some popular overseas retirement destinations Americans are drawing their security checks from include Australia, France, Portugal, the UK, Japan, and Canada.
Europe is particularly attractive to American expats, with Netherlands, Portugal, Switzerland, and Spain emerging as the best countries to live in Europe. While the continent may be beautiful and diverse, it can be expensive for retirees to comfortably live on their social security checks. For this reason, many American expats go for cheaper options. Some of the cheapest places to retire in Europe include Albania. Romania, Bosnia and Herzegovina, and North Macedonia.
Places to Retire for $1,000 a month
For retirees who want to stretch their retirement savings even further, they can consider many other options. Our article on the cheapest places to retire on social security can help explore some of these places, such as Granada in Spain, Zagreb in Croatia, and Alicante in Spain. Yet many other places can help retirees live comfortably under $1,000 too.
Some of the places to retire for $1,000 a month include Ipoh, Malaysia; and Tanjung Bungah in Malaysia. Yet other places exist where individuals can retire for $800 a month, such as Koh Samui in Thailand, Murska Sobota in Slovenia, Chiang Mai in Thailand, and Timisoara in Romania.
Due to the risks of social security depletion by 2033, rising inflation, and other financial concerns, retirees are already assessing the options that can prepare them for their golden years. If you are 50 and have no retirement savings, some best practices to employ include acting now, starting to save in retirement accounts, and considering bonds over stocks. Catch-up contributions are another way individuals 50 and above can save for their retirement years.
Moreover, companies such as Bank of America Corporation (NYC:BAC) and The Charles Schwab Corporation (NYSE:SCHW) can help potential retirees save up for their golden years. They offer different types of retirement accounts for saving up for retirement. To retire to a cheap destination with your limited savings, we have compiled a list of the cheapest and safest countries to retire in to allow you to make a calculated choice.
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Methodology
For compiling the list of cheapest and safest countries to retire in, we began with a list of all countries and their costs of living index sourced from Numbeo. Next, we highlighted the countries with a “very high” or “high” peace index ranking, according to the 2022 Global Peace Index Report from Vision of Humanity.
We ranked these countries based on their cost of living, rent, and local purchasing power index, and totaled a final Insider Monkey score for each country. The top 15 countries with the highest scores were selected for our final list.
Here is a list of the 15 cheapest and safest countries to retire in:
15. Hungary
Insider Monkey Score: 76
Hungary is one of the cheapest and safest countries to retire in on our list. It is a great place to be for retirees looking for high-quality amenities at affordable rates. Cost of living is 38.8% lower than in the United States, whereas rent is 73.8% lower. Hungary is home to beautiful landscapes, excellent healthcare, and a flourishing expat community.
14. Botswana
Insider Monkey Score: 77
Another attractive choice for retirees looking for affordability and safety is Botswana. Revered for its diverse wildlife and peaceful environment, the country is a haven for nature lovers. Retirees love to live here because of its warm climate, stable political climate, and rich cultural heritage. The cost of living in the country is 56.6% lower than in the United States, whereas rent is about 85.1% lower.
13. Bulgaria
Insider Monkey Score: 79
Bulgaria is one of the cheapest and safest countries to retire in. Enjoying a rich history and culture, retirees get to experience magnificent beaches, ancient ruins, and delectable cuisine in the country. The cost of living in Bulgaria is, on average, 45.7% lower than in the United States. Meanwhile, rent is 79.4% lower. Whether retirees choose to live in the mountains in Bulgaria or on the Black Sea, retirees get to stretch their retirement savings when choosing to relocate here.
12. Romania
Insider Monkey Score: 81
Romania’s diverse landscapes, low cost of living, and friendly people attract retirees worldwide. From the forested region of Transylvania ringed by the famous Carpathian Mountains to its lush natural parks and the Black Sea Coast, the country offers retirees lots to do. The cost of living in the country is 48.1% lower than in the United States, whereas the Global Peace Index ranks Romania’s peace level “high .”The locals are very welcoming towards foreigners.
11. Chile
Insider Monkey Score: 85
One of the easiest countries to retire to, Chile is a retirement haven for many. Retirees get to indulge in Chilean cuisine, socialize with the growing expatriate community, and enjoy plentiful recreational activities here. The average cost of living in the country is 54% lower than in the United States. Retirees also get to enjoy high-quality healthcare services, rich culture, and political and economic stability in the country. Ranking highly on the peacefulness index, the country has a relatively low crime rate than other countries in the region.
10. Montenegro
Insider Monkey Score: 85
Blessed with a picturesque coastline, Montenegro is no less than a tiny European treasure on the Adriatic Sea. Retirees love it for its relaxed lifestyle, affordable living costs, and favorable tax environment. On average, the cost of living in the country is 42.8% lower than in the United States. It is also a highly peaceful country for expats, with relatively low levels of crime reported in the country. Nevertheless, it is advised to exercise caution for petty crimes at night or in crowded places.
9. Bosnia and Herzegovina
Insider Monkey Score: 89
Bosnia and Herzegovina is one of the cheapest and safest countries to retire in. Serene rivers, picturesque mountains, and lush forests are a sight for sore eyes, and retirees love the country for its peace and tranquility. The Global Peace Index report agrees, citing a high peacefulness ranking according to its calculations. Living costs are 50.3% lower than in the United States.
8. Mauritius
Insider Monkey Score: 89
Besides being a cheap and safe country to retire to, Mauritius is also one of the easiest countries to gain citizenship as a retiree. This tropical paradise boasts year-round pleasant weather, a stable political climate, and high-quality healthcare. The cost of living in the country is 44.3% lower than in the United States, and retirees are also provided with attractive tax benefits. Mauritius is also one of the safest countries in Africa, ranking high on the Global Peace Index too.
7. Albania
Insider Monkey Score: 95
On average, Albania is 43.2% lower than in the United States. Fammous for it’s affordability, good climate, and Mediterranean charm, Albania is a cheap and safe destination to retire to. Retirees love to take in the picturesque views of the country and engage in the many recreational pursuits that it offers. The country is also safe for expats to retire to, though caution must be exercised for petty crimes such as pickpocketing.
6. Vietnam
Insider Monkey Score: 95
Retirees love Vietnam for its exotic and diverse culture, dreamy landscapes, and the inexpensive living it offers. The country enjoys a low crime rate as well, making it a popular retirement destination for many. Living costs in Vietnam are 54.3% lower than in the United States, and the country is also safe to retire to. These reasons make Vietnam one of the cheapest and safest countries for retirees.
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Disclosure: none. 15 Cheapest and Safest Countries to Retire In is originally published on Insider Monkey.