These Countries Have the Best Cost of Living Standards for Retirement
No one wants to consider the economics of old age when they are young. Yet, there is no better time to think about retirement. About 36% of American workers have less than $10,000 saved for retirement. Another 44% of Americans have yet to even begin planning for retirement. Over 20% think that they will never be able to afford to retire.
The average working retiree makes less than $20,000 a year. Meanwhile, the annual cost of living in states and cities without any large international metropolitan hubs can range from $35,000 to almost $46,000 annually. Those numbers don’t even take into account the astronomical costs of healthcare throughout retirement, which can be as high as $300,000.
Over 1.4 million American retirees live all over the world. Many reside in developing countries to make the most of their incomes and retirement savings. This isn’t a decision to make lightly, but it is one you might want to contemplate now. You may be young now, but its hard out here for a retiree. Especially as most retirees live on fixed incomes.
$1 USD = 568 Costa Rican Colón
Costa Rica is well known for its white sand beaches, exotic cloud forests that are 5.000 feet above sea level, adventure tourism, and cost of living affordability. If you pay attention to your budget and live within your means, you could live in Costa Rica on an income of $1,000 to $1,600 per month. Costa Rica also has three pension visa programs for foreigners who wish to relocate or start a business there.
$1 USD = 708 Chilean Peso
There is already a vibrant and thriving community of expatriates living in Chile. You’ll find that there are numerous German influenced and founded small towns throughout the country. German settlers have been coming to Chile since the 19th century. The southernmost part of the country offers the most accommodating access to portions of the Antarctic. Easter Island is territory owned by Chile.
Chile is considered to be a safe, clean, and modernized developed country. It only major drawback is that the country is located in an earthquake zone. (Relatively speaking, so are many people living on the westernmost coast of the United States.)
$1 USD = 52 Philippine Pesos
Most Filipinos speak fluent or elementary English, which is a fact that can help you adjust to a new culture easier. There may be over 36,000 Americans living in the Philippines. If you watch your budget, then you can live on $1,000 per month easily. A nice apartment could cost you $300 to $500 a month. People over the age of 50 who have a monthly income of $1,000+ are eligible to apply for a special visa for permanent retirees.
Planning for a Cost of Living Future
I hope I have given you a lot of food for thought. This isn’t just a list of data points that I have put together for you: I am in the midst of planning my own retirement as well. One day, I hope to retire to a foreign country with an affordable cost of living. However, there are many things to consider, like homesickness, health care, political stability, weather, internet access, access to clean water and more. Never make such decisions on a whim.
Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.