In this article, we take a look at the 20 best places to retire abroad on $4000 a month and discuss the looming retirement crisis in the United States. You can skip our detailed analysis on the subject and head over directly to the 5 Best Places to Retire Abroad on $4000 a Month.
Retirement Crisis in the US
According to The Federal Reserve Board, about one-fifth of American households aged between 55 and 65 have less than $100,000 in savings and are without a retirement plan. Around 47% of the individuals in this age group feel their savings are not on track; while 39% aged 65 to 74 years share the same view. Over 10% of Americans who are above 65 are in poverty, with about half of the population between 55 and 64 years of age unable to afford an emergency of over $2,000.
READ ALSO: 15 Safest Places to Retire Abroad for Less Than $2,000 a Month and 25 Best Places in the US to Retire on $5000 a Month.
As Americans struggle to save, the looming retirement crisis in the country appears inevitable with the number of American workers over the age of 75 set to double over the next decade. One factor contributing to this phenomenon is the lack of longevity literacy, with a quarter of the population underestimating how long a 60-year-old could live. This ultimately results in a lack of preparedness for retirement.
Inflation Denting Retirement Plans
According to Prudential Financial, Inc. (NYSE:PRU), a leading global financial services leader, high inflation and surging cost of living in the United States is forcing senior citizens to postpone their retirement plans. Around 33% of Americans aged 55 and above, and 43% of those aged 65+ have delayed their retirement due to the difficulty they face in managing their expenses. Moreover, a sizable share of the population in these age groups say that they even struggle to set aside a meager sum of $400 per month to cater for unexpected emergencies.
High inflation, the erosion of savings during the coronavirus pandemic, and the resumption of student loan payments have also resulted in many US residents finding themselves at a loss for funds and tapping their 401(k) accounts. According to a survey by Vanguard, How America Saves, 3.6% of Americans with 401(k) accounts made hardship withdrawals during 2023, up from 2.8% in 2022. Jamie, a 54-year-old single mother told CNN recently about how she has had to use her retirement funds twice to support her expenses. The first instance was when she gave birth to her first child and her employer did not offer maternity leaves, while the second occasion was when she switched jobs.
Frustration is growing among American buyers over the high cost of living and several notable consumer brands in the country have come under scrutiny as well over their pricey offerings. This has forced many of them, including including McDonald’s Corporation (NYSE:MCD), Target Corporation (NYSE:TGT), and Walmart Inc. (NYSE:WMT) to roll out new deals to lure Americans who become more selective about where they spend their money.
Target Corporation (NYSE:TGT) in May announced that it had slashed prices of about 1,500 items on its shelf and plans to reduce prices of thousands of other products as well during the summer. Most of the items include staple products, such as milk, butter, cream, diapers, etc. On the other hand, Walmart Inc. (NYSE:WMT) has been offering discounts as well and rolled out 7,200 short-term deals in the previous quarter. This was a 35% increase year-on-year. The company released its second-quarter results earlier this August. During the earnings call, CEO Doug McMillon noted that prices were coming down, but continued to remain high for categories such as processed foods and dry groceries due to what he described as ‘stubborn’ inflation in the country. The efforts by companies like Walmart to offer discounts and deals reflect the growing need for affordability in everyday essentials, which directly affects the financial well-being of individuals, especially those nearing or in retirement.
Walmart Inc. (NYSE:WMT) beat analysts’ estimates during the quarter, posting a revenue of $169.4 billion against forecasts of $168.3 billion, and an EPS of 67 cents against 65 cents. The results were owed to the strong performance of the company in global markets and an increase in visits to its stores and website in the US. As a result, the company raised its outlook for the second half of the year. It now expects sales to rise by 3.75-4.75% for the full year, and EPS to also be between $2.35 and $2.43 per share.
While we acknowledge the potential of WMT 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 WMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Methodology
We went through several publications on the best places to retire abroad, including our previous articles on Insider Monkey to gather a pool of cities. Then we filtered out cities that had a cost of living below $1,500 and higher than $4,000. Data on the cost of living and rental expenses was sourced from websites having credible data on living expenditure. We also referred to recent YouTube videos of expatriates sharing their experiences on how much it costs them to live in these cities. Finally, we sorted the cities in our pool in descending order of their ranking on Mercer’s quality of life index for cities in 2023, with New York City used as the base city when comparing.
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Let’s now head over to the list of the best places to retire abroad on $4000 a month.
20 Best Places to Retire Abroad on $4000 a Month:
20. Riga, Latvia
Average Monthly Cost of Living: $1,541
One-bedroom Apartment Monthly Rent: $475
Quality of Life Index Rank: 93
Riga is the capital of Latvia. It is one of the cheapest places to retire in Europe, with an average monthly expenditure of just over $1,500. The city offers a fine blend of modern and ancient architecture. It is also known for its vibrant culture and rich traditions. Moreover, Riga is ranked as the second-best city in the world for walkability. You can see the full list here. Latvia offers a five-year residence permit, also known as a retirement visa, for seniors who are above the age of 65 and can finance their living in the country.
19. Warsaw, Poland
Average Monthly Cost of Living: $1,978
One-bedroom Apartment Monthly Rent: $1,083
Quality of Life Index Rank: 84
Warsaw is one of the most affordable places to retire in Europe, with an average monthly expenditure of just under the $2,000 mark. It is the largest city in Poland, and also its capital. It is also a very clean and environmentally friendly city that is brimming with parks. Moreover, around 60% of the population in Warsaw understands and speaks English, making it one of the best places to retire abroad on $4000 a month for American expats.
18. Dubai, United Arab Emirates
Average Monthly Cost of Living: $2,927
One-bedroom Apartment Monthly Rent: $1,994
Quality of Life Index Rank: 79
Dubai is one of the best places to retire abroad on $4000 a month, with the city offering a high quality of life for retirees. It is an expat-friendly city with around 89% of the population comprising expatriates. To be eligible for Dubai’s retirement visa, a retired person aged 55 and above must own a property valued at a minimum of AED 1 million, have savings of at least AED 1 million, and have a monthly income of AED 15,000 ($4,000).
17. Ljubljana, Slovenia
Average Monthly Cost of Living: $2,622
One-bedroom Apartment Monthly Rent: $616
Quality of Life Index Rank: 78
Ljubljana combines high-quality living with affordability. It is a perfect place for American expatriates looking to retire in a serene European city, due to its picturesque setting and relaxed lifestyle. It is a highly walkable city with a clean environment, making it an ideal destination for leisurely exploration. While Slovenia does not offer retirement visas to non-EU citizens, it allows American nationals to avail the one-year temporary residence permit which is renewed every year, and after five years of living in Slovenia, Americans can apply for permanent residency.
16. Tokyo, Japan
Average Monthly Cost of Living: $2,058
One-bedroom Apartment Monthly Rent: $1,032
Quality of Life Index Rank: 50
Japan is a popular retirement destination for Western expatriates due to the country’s world-class healthcare facilities, vibrant culture, and unparalleled security. While there are several cities where seniors can choose to live in the country, Tokyo stands out as the preferred choice for most. It is a bustling city that is rich in culture and tradition and has some of the finest hospitals in the country. Tokyo’s public transportation system is also top-notch and is considered among the most efficient in the world. It is one of the best places to retire abroad on $4000 a month.
15. Barcelona, Spain
Average Monthly Cost of Living: $2,633
One-bedroom Apartment Monthly Rent: $1,390
Quality of Life Index Rank: 48
Barcelona is a popular retirement destination because of its rich culture, striking architecture, and vibrant lifestyle. To live a comfortable retired life in the city, you should have a stable monthly income of around $3000. While Spain does not have a retirement visa, alternate routes such as Non-Lucrative and Golden visa options are available.
14. Lisbon, Portugal
Average Monthly Cost of Living: $2,374
One-bedroom Apartment Monthly Rent: $1,393
Quality of Life Index Rank: 39
Lisbon, the Portuguese capital, is a favored city for retirement for pensioners worldwide due to its warmer, Mediterranean climate. Housing is pricey in the Lisbon city center, but retirees can easily find affordable accommodation on the outskirts of the city, where even after spending on rent, they can save an ample amount to spend on leisure, dining, and other recreational activities.
13. Lyon, France
Average Monthly Cost of Living: $2,183
One-bedroom Apartment Monthly Rent: $857
Quality of Life Index Rank: 38
Lyon is one of the safest cities in France with a minor crime rate and is ranked 38th in the world for quality of life. While the place may seem gloomy during the winter season as it gets pretty cold and damp, the weather during the summers, spring, and fall is generally tempered. It is considered a walkable city where you can easily navigate through the beautiful neighborhoods across Lyon on foot. While France does not offer any specific retirement visa, American expats can retire in the country by availing its long-stay visa which allows them to live in the country for a year without having a residence permit.
12. Brussels, Belgium
Average Monthly Cost of Living: $2,204
One-bedroom Apartment Monthly Rent: $954
Quality of Life Index Rank: 36
While Belgium does not offer a retirement visa, Americans can retire in the country by availing its long-stay visa. Brussels is Belgium’s largest city and serves as the administrative center for the European Union. The city is well-known for its ancient architecture, world-class sports facilities, high-standard medical facilities, and affordable living. It is one of the best places to retire abroad on $4000 a month.
11. Helsinki, Finland
Average Monthly Cost of Living: $2,265
One-bedroom Apartment Monthly Rent: $1,096
Quality of Life Index Rank: 34
Helsinki is the capital of Finland and is among the best places to retire abroad on $4000 a month. The city’s cost of living is relatively cheaper compared to other cities in Europe and offers a high quality of living, including top healthcare facilities, public transportation, a vibrant night culture, and a wealth of activities and sights for retirees to explore. Finland does not have a specific retirement visa, so you must apply for a residence permit to retire in the country.
10. Paris, France
Average Monthly Cost of Living: $2,979
One-bedroom Apartment Monthly Rent: $1,127
Quality of Life Index Rank: 32
Paris, what is popular as the City of Love, has in recent years become a sought-after destination among American and British seniors looking to retire. It is the perfect city to retire if your retirement vision involves captivating cultural experiences, fine dining, and a high quality of life. A single person can live in Paris with an average income of around $3,000 a month. As a result, it finds a place in our list of the best places to retire abroad on $4000 a month.
9. Canberra, Australia
Average Monthly Cost of Living: $3,515
One-bedroom Apartment Monthly Rent: $1,885
Quality of Life Index Rank: 28
Life can be quite vibrant and fulfilling for those looking to retire in Canberra due to the city’s high standard of living, clean environment, and relaxed pace of life. The Australian capital’s warm climate further enhances the appeal of this city for seniors looking for a comfortable place to retire. With an average monthly cost of living of over $3,500, it is one of the best places to retire abroad on $4000 a month.
8. Stockholm, Sweden
Average Monthly Cost of Living: $2,691
One-bedroom Apartment Monthly Rent: $1,557
Quality of Life Index Rank: 26
Nordic nations are usually recognized for the standard of living across all generations, and one of them is Stockholm which is widely acclaimed for its high quality of life with top healthcare facilities, a well-developed infrastructure including public transport, and a strong social support system. Sweden does not have a retirement visa, so American seniors looking to retire in Sweden generally look for a resident permit and work in the country for 4-5 years before retiring, according to Forbes.
7. Oslo, Norway
Average Monthly Cost of Living: $3,071
One-bedroom Apartment Monthly Rent: $1,341
Quality of Life Index Rank: 24
Oslo is one of the best places to retire abroad. The city is known for its vibrant culture, spectacular beauty, and a high quality of life. Retirees living in the Norwegian capital have the opportunity to indulge in several outdoor entertainment and recreational activities, and can also enjoy the scenic beauty of fjords in various parts of the country.
6. Amsterdam, Netherlands
Average Monthly Cost of Living: $3,852
One-bedroom Apartment Monthly Rent: $1,811
Quality of Life Index Rank: 14
Amsterdam is a popular destination for retirement and offers a vibrant lifestyle, nightlife, picturesque canals, and attractive coffee shops across the city’s streets. The city also boasts a robust healthcare system. These are all perfect ingredients that seniors look for when planning their retirement life. While the Netherlands does not have a retirement visa, those looking to retire in the country can obtain a residence permit at the Immigration and Naturalization Service (INS) after arrival. After the requirements are fulfilled, they can obtain a permit valid for five years.
5. The Hague, Netherlands
Average Monthly Cost of Living: $2,759
One-bedroom Apartment Monthly Rent: $1,302
Quality of Life Index Rank: 11
The Hague is another Dutch city on the list that is among the best places to retire abroad on $4000 a month. The average monthly expenditure inclusive of rent in the city is under $2,000, which makes it an affordable city to retire in. Moreover, the city is revered for its excellent healthcare services, high quality of life, and diverse culture. Seniors retiring in The Hague can also spend leisure time exploring the city’s historical sites, outdoor parks, and beach resorts.
4. Vancouver, Canada
Average Monthly Cost of Living: $3,225
One-bedroom Apartment Monthly Rent: $1,890
Quality of Life Index Rank: 8
Located on the west coast of British Columbia, Vancouver is one of the most ethnically diverse cities in Canada. The city is known for its clean environment, safety, mild climate, scenic views, and culinary experience. Canada does not offer a retirement visa, but there are several residency programs that Americans can avail of to retire in the country.
3. Munich, Germany
Average Monthly Cost of Living: $3,327
One-bedroom Apartment Monthly Rent: $1,241
Quality of Life Index Rank: 7
Munich is known for its museums, theatres, historical landmarks, and its football. It is one of the best places to retire abroad on $4000 a month. Moreover, the city’s public transportation and outdoor parks offer a friendly atmosphere for retirees. Munich also boasts a robust medical system. American expats require a residence permit to retire in Germany.
2. Auckland, New Zealand
Average Monthly Cost of Living: $2,306
One-bedroom Apartment Monthly Rent: $1,038
Quality of Life Index Rank: 3
New Zealand is a great destination to retire in. The country offers a temporary retirement visitor visa for 2 years to individuals aged 66 years and above if they have NZD 750,000 (USD 455,000 approx) to invest in the country and an additional NZD 500,000 (USD 304,000) to live in the country. They should also have an annual income of at least $36,500. Auckland is the preferred choice for most expatriates looking to move to New Zealand due to its stunning landscape, vibrant culture, and high quality of life.
1. Vienna, Austria
Average Monthly Cost of Living: $2,265
One-bedroom Apartment Monthly Rent: $863
Quality of Life Index Rank: 1
Retiring in Vienna is no less than a dream for most senior citizens due to the city’s classical architecture and relaxed lifestyle, at a minimal monthly expenditure. Vienna is known for its green spaces and has several outdoor parks. The city also boasts high-standard medical facilities. It also plays host to numerous community events and festivals throughout the year that provide an opportunity for entertainment for retired individuals. American expats can gain a settlement permit to retire in the Austrian capital. It is the best place to retire abroad on $4000 a month.
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Disclosure: None. 20 Best Places to Retire Abroad on $4000 a Month was originally published on Insider Monkey.
