After spending your life slaving away to save for a comfortable retirement, you might later realize that your retirement savings are simply not enough to afford your current lifestyle. Unfortunately, a large number of retirees need to adjust their lifestyles to afford their golden years. For some, options like aging in place or moving to a retirement village are unaffordable. While downscaling and cutting back on expenses can help you stretch your savings, you could also consider relocating to a country that can offer you an affordable retirement.
When retiring abroad, you will need international medical insurance for seniors to ensure your healthcare needs don’t set you off an already tight budget.
Nevertheless, here are the best countries for affordable retirement.
Portugal ranks 42.18 on the cost of living index, and the region scores six on the global peace index. Therefore, Portugal is safe and affordable enough for seniors looking to retire abroad.
To retire here, you will need proof of health insurance to apply for residency. But the country has a tax regime that considers expatriates and retirees. If you qualify for non-habitual residence in Portugal, you will be exempt from paying taxes for the next ten years.
But if that’s not enough to truly convince you that Portugal is a top choice, the region’s pleasant weather and breathtaking landscapes surely should.
Another country worth consideration is Malaysia. The region ranks 18 on the global peace index and 34.41 on the cost of living index. Moreover, Malaysia is also making active efforts to welcome expatriates by offering long-term travelers a visa for ten years in hopes that expatriates will consider the country a second home.
Malaysia is an exceptional choice for nature lovers; the region is a gateway to various lush, dense jungles and serene beaches.
If you choose Malaysia, you can find a one-bedroom apartment for under $300 in urban areas. Even so, you can find cheaper apartments in the suburbs.
Spain might be a bit less safe and a bit more expensive than Portugal and Malaysia, ranking 29 on the global peace index and 47.51 on the cost of living index. However, Spain is still exceptionally affordable compared to other European countries.
Madrid is the most expensive city in Spain, so you’ll want to avoid this area when finding your new home abroad.
With a global peace index rating of 38 and a cost of living index rating of 43.65, Costa Rica is an excellent country to retire on a tighter budget.
In Costa Rica, you can indulge in local restaurant meals for as little as $7, and an apartment in San Jose will cost around $600 a month. To retire here, you’ll spend about $2500 per month.
Panama has a global peace index rating of 61 and a cost of living index of 48.25, making the country slightly more expensive than Costa Rica.
But because Panama welcomes retirees from around the world with an alluring pensioner benefits program known as the Pensionado Visa, which works like a credit card, pensioners here can enjoy 25% off flights, 30% off public transport, and 25% off restaurants. The program also offers seniors other lucrative benefits that ensure living here is exceptionally affordable.
The Czech Republic
The Czech Republic boasts a global peace index rating of 8 and a cost of living index rating of 44.33. Seniors can retire here on a tight budget without having to worry about everyday safety.
You will need proof of international health insurance to apply for a visa, and you’ll find the country both affordable and safe. Moreover, the region is known as the castle capital of the world, so if you find historical architecture interesting, the Czech Republic is a great choice to retire abroad.
Peru ranks 30.74 on the cost of living index and 101 on the global peace index. While the country is notably affordable, seniors will need to consider additional safety needs such as home security systems and personal safety devices.
Even so, there are safer neighborhoods within the country. You might spend a bit more renting an apartment in sought-after areas, but you’ll find the extra cost worthwhile when considering your everyday safety.
Slovenia is a small region located in the heart of Europe. The region ranks 47.30 on the cost of living index and seven on the global peace index. The country is both affordable and exceptionally safe.
Slovenia is also home to several mountain peaks, dense forests, and tons of adventures. Additionally, you can rent an apartment here for as little as $700 a month, and you’ll find other everyday expenses affordable as well.
There are tons of affordable destinations to consider when retiring abroad on a restrictive budget. However, it’s essential to purchase international health insurance as most countries will require proof of health insurance.