This article takes a look at the 15 easiest countries to retire to. If you wish to skip our detailed analysis on the retirement dilemma and best expat retirement countries, go to 5 Easiest Countries to Retire to.
The Retirement Dilemma
The many retirement ages, be it 62, 65, or even 70, have been igniting massive debates worldwide. This is, in large part, in response to the shaky future of entitlement programs. Even France has been a victim of massive protests on the rising retirement ages, despite having one of the lowest retirement ages in the industrialized world. According to Social Security Administration, 65-year-olds are expected to live another 19 to 21 years, on average, which means funds such as Social Security and Medicare in the US are going to be under a lot of pressure in the future.
One proposition analysts are making is raising the retirement age, citing that there should be a match of life expectancies with retirement age for those entering retirement in the future. Therefore, if you think you can claim your social security benefits in full when you turn 65, think again.
Congress has long changed the retirement ages to overhaul the entitlement program. Lawmakers, in turn, have increased the full retirement age, and the first retirees to be impacted by the change have been people who turned 65 in 2003. Individuals must wait for a certain retirement age, depending on when they were born, to claim their full retirement benefits.
Those born in 1960 or later must wait until 67 to claim their full benefits, and so on. A major turning point to this reality is the risk of depletion major entitlement programs are facing. Trustees at social security have been pointing out that neither Social Security nor Medicare will be able to provide their full benefits by the next decade.
Expected to be depleted by 2033, social security will only receive enough income to disburse 80% of scheduled benefits. The Baby Boomer retirement boom is largely to be blamed for this financial disaster. With an aging population, fewer workers are paying into the program, while the number of beneficiaries are growing and also living longer. Due to the many problems concerning inflation, funds depletion, taxes, and costs of living, thousands of people are now pondering over a retirement move.
Best Expat Retirement Countries
The retirement dilemma has had many people relocating to different places around the world. Many Americans choose to relocate within the country, yet others choose to relocate outside the US as well. Several countries are on their radar, such as those in the Caribbean, the Central Americas, and even Asia. Some of the best expat retirement countries include the Philippines, Malaysia, Indonesia, and Mexico.
Moreover, many individuals have also been exploring cheaper destinations that can allow them to stretch their retirement savings further. As such, some of the cheapest countries for retirement include Portugal, Chile, Malaysia, and the Dominican Republic.
For those looking for a nice blend of affordability and safety, Chile, Albania, Argentina, and Indonesia are some of the cheapest and safest countries to retire in. Not only can one live in these countries comfortably on social security, but also enjoy having a peaceful mind from living in a safe place.
While moving to a new country is a hassle, many countries offer retirement visa programs with minimal requirements to which retirees can quickly relocate. For your ease, we have compiled a list of the easiest countries to retire to so you can make a sound decision for your golden years.
Methodology
To come up with our list of easiest countries to retire to, we listed out countries that have recognized Retirement Visas. Retirees can also choose other countries to retire to besides these in our list, according to new retirement programs that countries may be offering, and other Visa or Residency options that may suit them better.
Next, we assessed the income and age requirements for each country and eliminated options that had a minimum income requirement of more than $18,000 annually. We ranked them on their minimum income requirements. All income amounts are quoted as the monthly minimum in US Dollars ($ USD). Note: These income requirements have been calculated using exchange rates and are subject to change.
Here are the easiest countries to retire to:
15. Mauritius
Income Requirement: $1,500
Mauritius, known for its picturesque beaches, lush landscapes, and a variety of recreational activities, is among popular retirement places for seniors around the world. Retiring to this beautiful country is relatively easy, provided that two conditions are met. First, an individual should be at least 50 years old. Second, the individual should invest at least $1,500 monthly or $18,000 annually from sources outside of Mauritius. Upon meeting these conditions, a non-citizen retiree would be granted a Retirement Residence Permit valid for up to 10 years.
14. Uruguay
Income Requirement: $1,500
Uruguay, the hidden gem of South America, has a lot to offer retirees. From picturesque beaches to natural parks and rich culture, living here has many perks. To apply for the Uruguay Retirement Visa, applicants must have a minimum monthly pension or other retirement income equal to $1,500. After submission of necessary documents, applicants are granted a temporary residence and an identity card called the Cedula. After three months of temporary residence, applicants can apply for permanent residency in the country.
13. Indonesia
Income Requirement: $1,200
For individuals looking to retire in Indonesia, the first step is to arrive in the country on an entry visa. Next, the non-citizen retiree should go to the immigration office to convert their visa into a Temporary Residence Permit (KITAS). To be granted visa, a retiree should be at least 55 years of age, have no intention to work in the country, and have a pension or other means of sustenance without having to work. The minimum income requirement is $18,000 annually or $1,200 monthly. You also need to obtain health insurance, a signed rental agreement, domestic help, and be from one of the 54 countries that you can check out here.
12. Panama
Income Requirement: $1,000
One of the easiest countries to retire to, Panama offers retirees a warm climate, picturesque landscapes, and tax exemptions. The country has a well-established retirement program called Pensionado Visa for those looking to retire to the country. The program has excellent incentives, such as import tax exemptions on household goods, discounts on utility bills, loans, medicines, doctors’ bills, etc. To acquire the retiree residence status, the applicant should be able to demonstrate an income pension of $1,000 per month and $250 per dependent. Retirees should be physically present in the country at the time the visa is issued.
11. Costa Rica
Income Requirement: $1,000
Fantastic year-round weather, beautiful beaches, and affordable living make Costa Rica a hot retirement destination for seniors. To retire to the country, applicants need to obtain a retirement visa known as the Pensionado Visa. In order to qualify for the visa, individuals must receive a monthly pension of $1,000 individually. This income can be coming from social security, retirement funds, military pensions, or other retirement benefits.
10. Peru
Income Requirement: $1,000
Another one of the easiest countries to retire to, Peru is home to a rich culture, great climate, and fantastic food. Retirees also love it for its affordable costs of living, and moving here can be a great way to stretch your retirement savings. To apply for a Peru Retirement Visa, also called Rentista Visa, applicants must have at least $1,000 per month of passive or pension income, or $12,000 per year.
9. Chile
Income Requirement: $1,000
Delicious food, friendly people, and a high quality of life makes Chile a popular retirement destination. Retirement in the country can be sought through the Chile Retirement and Periodic Income Visa, a temporary visa granted for a period of one year. In order to acquire the visa, an applicant must ensure receiving a periodic monthly income to support themselves during the stay. After the expiry, the visa can be renewed.
8. Malta
Income Requirement: $878
Malta is one of the easiest countries to retire to, with sunny weather, beautiful architecture, and friendly people. Those who wish to retire in the country must have a pension or retirement income received in full, in the country. The income must represent at least 75% of the income chargeable in Malta. Applicants will also be required to purchase a property, or rent, according to a certain minimum amount.
7. Argentina
Income Requirement: $820
Argentina is another one of the easiest countries to retire to, famous for its wine, tango, and Iguazo Falls. The country offers great living conditions at relatively affordable costs, which is why individuals are attracted to the country. Individuals can apply for an Argentinian retirement visa (Pensionado Visa), a type of temporary residence that grants moving into the country for retirement. The minimum age for this visa is 65 for men and 60 for women.
6. The Philippines
Income Requirement: $800
Foreign national seniors who wish to retire to the Philippines can do so through their SRRVISA (Special Resident Retiree’s Visa) program. Retirees who are granted the visa have access to various benefits, such as indefinite stay with multiple entry/exit privileges, certain discount privileges, entitlement to PHILHEALTH benefits and privileges, etc. The SRRV classic requires an applicant to be at least 50 years of age, make an SRR Visa deposit of $10,000, and a required pension of at least $800.
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Disclosure: none. 15 Easiest Countries to Retire to is originally published on Insider Monkey.