This article takes a look at the 25 most affordable places to retire in the world. If you wish to skip our detailed analysis on how to save billions for retirees, you may go to 5 Most Affordable Places to Retire in the World.
On Saving Billions for Retirees
If you’ve been struggling to save up for retirement, a new proposal might help individuals like you collectively save an estimated total of $10 billion in the next decade.
“Research shows that without realizing it, folks can end up paying as much as 20% more because of hidden junk fees than they would have paid if they could see the full price upfront and compare it with other options,”
– President Joe Biden said Wednesday speaking from the White House Rose Garden
According to the US Biden administration, certain loopholes in retirement systems today allow the industry to sell products that boost their revenue. This is often done at the expense of customers. The Federal Trade Commission (FTC) proposal will allow retirement advisors to be protected regarding their retirement savings.
Since junk fees are charged at the back end of the buying process, it is harder for customers to compare the prices and land the best deals. As a result, customers end up paying 20% more than they should. Provided that the proposal is finalized, businesses would be barred from charging any type of hidden fees, and disclose full prices upfront. Retirement advisors, airlines, apartment rentals, car rentals, hotels & lodging, and event tickets will need to be transparent regarding their charges.
“It’s wrong. It’s wrong. It’s just taking advantage of people. And it makes it harder for honest businesses who are trying to do the right thing to compete.” The rule “would not just return money to people’s pockets but also restore a degree of justice to American families and restore fairness in our markets”.
-Biden
The Consumer Financial Protection Bureau (CFPB) has already begun slapping corporations such as Bank of America Corporation (NYSE:BAC), Wells Fargo & Company (NYSE:WFC), and Regions Financial Corporation (NYSE:RF) with fines. Bank of America Corporation (NYSE:BAC) has been ordered to pay more than $100 million to affected customers, and $150 million in penalties to the CFPB.
“Bank of America Corporation (NYSE:BAC) wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent. These practices are illegal and undermine customer trust. The CFPB will be putting an end to these practices across the banking system.”
– CFPB Director Rohit Chopra.
Hopefully, fines and penalties will help other organizations to refrain from such practices. Additionally, customers will be able to save up more for things such as retirement, adding up to 20% to their savings. However, a comfortable retirement may still not be in the pipeline for those who have less than $1 million saved for their retirement years.
By mitigating unnecessary fees, an individual with $150,000 in retirement savings can accrue an additional $30,000. Amidst inflation and the cost of living crisis, it has increasing become difficult for individuals to save for retirement, and these cost savings can help them in the long run. However, those with less than $1 million saved for retirement may face difficulties sustaining a comfortable lifestyle in the United States for the average 18 years of their retirement.
As the challenges of achieving financial security in retirement persist, many retirees are exploring alternative avenues to stretch their savings. This has led to a growing trend of retirees seeking affordable places to retire around the world. At the end of 2021, nearly 450,000 people received their social security benefits from overseas, an increase of 307,000 from 2008. The statistics clearly illustrate the determination of many seniors to retire outside of the United States. For this reason, we have compiled a list of some of the most affordable places they can retire to.
Colin D. Young/Shutterstock.com
Methodology
To compile the list of the most affordable places to retire in the world, we have used our list of the cheapest countries for retirement, best places to retire, and the cheapest and safest countries to retire to. Next, we listed out the most cost-friendly places from within the countries based on our previous lists.
Places were then scored on their average monthly cost of living expenses, average monthly rent (1 bedroom apartment), and quality of life. Individual scores were added to attain a unique Insider Monkey Score. Finally, places have been ranked in an ascending order from the lowest to the highest scores.
For places with the same scores, tie-breaking has been done on the basis of average monthly rent (1-bedroom apartment), with lower rents placed higher on our list.
Here are the most affordable places to retire in the world:
25. Valencia, Spain
Insider Monkey Score: 3
Average Monthly Rent: $1,215
Average Monthly Living Expenses: $2,064
Retirement Visa: None, Retire via Spain Golden Visa or Spain Non-Lucrative Visa
Spain is one of the cheapest English-speaking countries to retire to. Valencia, in particular, is revered for its beautiful beaches, Mediterranean climate, and rich culinary scene. According to Expat Insider 2023, Valencia also boasts one of the most affordable healthcare in the world.
24. Vlorë, Albania
Insider Monkey Score: 7
Average Monthly Rent: $888
Average Monthly Living Expenses: $1,600
Retirement Visa: Albania Retirement visa
Home to a beautiful coastline, Vlorë is one of the most affordable places to retire in the world. The city also stands out as a retirement destination because of its historical sites and affordable living.
23. El Valle, Panama
Insider Monkey Score: 7
Average Monthly Rent: $700
Average Monthly Living Expenses: $1,700
Retirement Visa: Pensionado Program
Panama is one of the best countries for US citizens to retire to. Within the country, El Valle is an affordable destination to retire to. It boasts picturesque mountainous landscapes, a mild springtime climate, and some of the most friendly locals.
22. Tomar, Portugal
Insider Monkey Score: 9
Average Monthly Rent: $700
Average Monthly Living Expenses: $1,500
Retirement Visa: Portugal D7 Visa
Portugal is one of the best expat retirement countries in the world. Tomar, in particular, is one of the most affordable places to retire in the country. The city is revered for its relaxed lifestyle and historic charm, and the pleasant climate adds to the appeal of retiring here.
21. Granada, Spain
Insider Monkey Score: 9
Average Monthly Rent: $641
Average Monthly Living Expenses: $1,747
Retirement Visa: None, Retire via Spain Golden Visa or Spain Non-Lucrative Visa.
Granada is not only appreciated for its affordability but also for its stunning Moorish architecture and vibrant local culture. Retirees seeking a blend of history, affordability, and a pleasant climate can retire here.
20. Ostrava, Czech Republic
Insider Monkey Score: 9
Average Monthly Rent: $500
Average Monthly Living Expenses: $2,500
Retirement Visa: None, Apply for a Long-Term Residence Permit
Owing to its unique industrial history, numerous cultural attractions, and affordable living costs, Ostrava is one of the best places to retire in the Czech Republic.
19. Tamarindo, Costa Rica
Insider Monkey Score: 14
Average Monthly Rent: $500
Average Monthly Living Expenses: $1,500
Retirement Visa: Pensioner visa (Pensionado)
Tamarindo is an ideal place for retirees to call home. Besides its affordable beachfront lifestyle, the town offers a mix of natural beauty, water activities, and a welcoming community, making it one of the best places to enjoy a coastal retirement.
18. Padang, Indonesia
Insider Monkey Score: 14
Average Monthly Rent: $500
Average Monthly Living Expenses: $1,500
Retirement Visa: Indonesia Retirement Visa (KITAS)
One of the most affordable places to retire around the world is Padang, Indonesia. The city is especially revered for its reasonable living costs, scenic landscapes, and diverse culinary scene.
17. Santiago, Panama
Insider Monkey Score: 16
Average Monthly Rent: $700
Average Monthly Living Expenses: $1,200
Retirement Visa: Pensionado Program
Santiago is one of the best places to retire in Panama. The city is home to some of the most picturesque landscapes, rolling hills, and lush vegetation. Retirees enjoy a relaxed pace of life here.
16. Montezuma, Costa Rica
Insider Monkey Score: 19
Average Monthly Rent: $450
Average Monthly Living Expenses: $1,500
Retirement Visa: Pensioner visa (Pensionado)
Montezuma in Costa Rica features a laid-back atmosphere, beautiful natural surroundings, and some of the most affordable living costs in the country.
15. Coimbra, Portugal
Insider Monkey Score: 23
Average Monthly Rent: $600
Average Monthly Living Expenses: $1,100
Retirement Visa: Portugal D7 Visa
Coimbra, one of the best places to retire in Portugal, appeals to retirees due to its vibrant cultural scene, historical charm, and affordable living costs. The riverfront city is also home to modern healthcare facilities.
14. Arequipa, Peru
Insider Monkey Score: 24
Average Monthly Rent: $400
Average Monthly Living Expenses: $1,287
Retirement Visa: Peru Retirement visa
Offering a unique blend of historical charm and affordability, retirees in Arequipa enjoy its picturesque setting, cultural richness, and affordability. The city is also home to a growing expat population.
13. Podgorica, Montenegro
Insider Monkey Score: 24
Average Monthly Rent: $461
Average Monthly Living Expenses: $1,150
Retirement Visa: None, Apply for Montenegro Residence Permit
Montenegro appeals to retirees because of its high quality of life, desirable tax rates, and beautiful natural surroundings. Its historic architecture and proximity to natural wonders make it an attractive destination for retirees.
12. Da Nang, Vietnam
Insider Monkey Score: 27
Average Monthly Rent: $452
Average Monthly Living Expenses: $1,115
Retirement Visa: None, Apply for Permanent Residency
Vietnam is one of the cheapest and safest countries to retire to. Da Nang, in particular, is a nice place to retire on $1000 a month. Retirees appreciate it for its stunning landscapes, vibrant culture, and developing infrastructure.
11. La Serena, Chile
Insider Monkey Score: 32
Average Monthly Rent: $335
Average Monthly Living Expenses: $1,135
Retirement Visa: Chile Retirement and Periodic Income Visa
La Serena is one of the best places to retire in Chile. The city’s coastal beauty, pleasant climate, and affordability allow it to be an ideal destination for retirees. The city’s beaches and ocean views, warm weather, and sunny skies add to its allure.
10. Gaborone, Botswana
Insider Monkey Score: 34
Average Monthly Rent: $252
Average Monthly Living Expenses: $1,191
Retirement Visa: None, Apply for Permanent Residency
Retirees in Gaborone get to enjoy a stable and affordable lifestyle. Its appeal lies in its unique African experience, characterized by modern amenities and a welcoming community.
9. Grand Baie, Mauritius
Insider Monkey Score: 35
Average Monthly Rent: $350
Average Monthly Living Expenses: $1,000
Retirement Visa: Mauritius Retirement Visa
Besides its affordability, Grand Baie is a distinguished retirement destination because of its topical climate and beautiful beaches. Retirees love to take long strolls on its pristine white sandy beaches, all while enjoying the ideal climate it features.
8. Murska Sobota, Slovenia
Insider Monkey Score: 36
Average Monthly Rent: $400
Average Monthly Living Expenses: $900
Retirement Visa: None, Apply for a Temporary Residence Permit
Murska Sobota, Slovenia is one of the cheapest places to retire in Europe. Its green landscapes, tranquil atmosphere, and rich cultural heritage make it an appealing retirement destination.
7. Debrecen, Hungary
Insider Monkey Score: 37
Average Monthly Rent: $370
Average Monthly Living Expenses: $960
Retirement Visa: None, Apply for Residence Permit
One of the most affordable places to retire in the world is Debrecen, Hungary. Retirees get to enjoy an affordable lifestyle in the region, relishing its cultural heritage, thermal baths, and lower costs of living.
6. Chisinau, Moldova
Insider Monkey Score: 39
Average Monthly Rent: $315
Average Monthly Living Expenses: $990
Retirement Visa: None, Apply for a Temporary Residence Permit
From its low living costs to its wine culture and cultural diversity, Chisinau helps retirees stretch their retirement savings quite far. Retirees live to explore the many local wineries, explore Moldova’s beautiful countryside, and appreciate the relaxed pace of life.
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Disclosure: none. 25 Most Affordable Places to Retire in the World is originally published on Insider Monkey.