With inflation running rampant and its potential impact on retirement account balances on the minds of many near and recent retirees, a greater percentage of Americans might just be open to the option of retiring overseas to bump up their quality of life.
“If stretching your retirement dollars is your No. 1 priority in an overseas haven, then the places that score best in the ‘Cost of Living’ category on International Living’s 2022 Annual Global Retirement Index should be at the top of your list,” says Jennifer Stevens, executive editor, International Living. “Because there, not only can you spend much less day-to-day—as little as $1,500 a month for a couple, in fact, but you can upgrade your lifestyle while you save.”
Interestingly, none of the four countries on this list made the top 10 in IL’s 2022 overall rankings (where Panama topped the list). But with a focus solely on cost of living, they rise to the top.
“Keep in mind that the places we recommend are not merely ‘cheap,’ they’re places where we find great value. They are places where a small outlay buys you a big lifestyle. And by that I mean that you can live very comfortable—perhaps, in fact, more comfortably than you do in the U.S., for a fraction of what you spend today,” Stevens adds.
“In the right spots overseas, you can afford to relax. And that’s because it costs relatively little to take care of your ‘needs,’ which means you have more pocket money left for leisure activities—for dinners out, theater, travel,” Stevens says. “It means you can keep enough in your bank account that you have peace of mind, knowing you are financially secure and can live comfortably through your retirement without running out of funds.”
Affordability makes for a rich quality of life in retirement overseas, and the countries at the top of the IL Index’s ‘Cost of Living’ category offer some of the highest quality of life possible for the least amount of money.
The four countries that score best in the Cost of Living category of International Living’s 2022 Annual Global Retirement Index are….
Cambodia and Bolivia are tied for third place with 94 points.
3. (tie) Cambodia
The small Southeast Asian country of Cambodia (which placed 14th on the overall list) has one of the fastest growing economies in the world. The capital city of Phnom Penh has blossomed into a bustling city full of skyscrapers, classy malls, and upscale restaurants. Fortunately, this city—and the rest of the country—still offer a solid value for foreigners looking to live in a place with cheap beer, warm weather, friendly locals, and an active expat community.
“Phnom Penh is the most expensive place to live in the country, but you can still live well for a fraction of the cost that you would spend ‘back home.’ Go farther afield, to the expat-friendly small cities of Battambang, Siem Reap, and Kampot, and Cambodia becomes downright cheap,” says Wendy Justice, IL Southeast Asia correspondent.
“Like in any capital city, you can live with a low budget or live in luxury in Phnom Penh. Rent in the capital city remains reasonable; you can lease a one-bedroom apartment in the heart of downtown, within walking distance of restaurants, bars, and the best shopping, for less than $500 per month. Even the best apartments are affordable by international standards; few places would cost more than $1,500 per month,” Justice says.
“Medical care in Cambodia has improved recently, and the country now has its first JCI-accredited hospital. The Royal Phnom Penh Hospital—owned by the huge Bangkok Hospital consortium—offers full check-ups, including a physical examination, an EKG, and a full laboratory workup for only $115. Doctors in private clinics charge as little as $5 for consultations, though a visit with an English-speaking doctor will cost about $25.”
Centrally located, Cambodia is a good destination in which to base yourself if you want to explore the rest of Southeast Asia. It shares borders with Thailand, Laos, and Vietnam, and pre-COVID-19, it was easy to cross into any of these countries by land or by air.
Cost of living (housing included) for an expat couple in Cambodia: $1,150 to $1,900 (for a single, assume about 1/3 less).
3. (tie) Bolivia
Bolivia (24th in overall rankings) is probably one of the most surprising expat destinations in the Index. It’s not a country that’s in the news much. It’s not on the radar of most planning a retirement abroad. But it does offer some solid benefits for those who settle here.
This little South American haven is wedged in between Peru, Argentina, Brazil, Chile, and Paraguay. The local Andean indigenous culture is rich. The cities balance tradition and history with modern amenities and conveniences. The weather in most places expats settle is temperate for much, if not most, of the year.
The biggest attractor for retirees is the affordability. Fred Staff has lived in Bolivia for more than 30 years. He loves the relaxed lifestyle, the climate and the cost of living.
“What it costs to live in the U.S. boggles my mind,” says Staff, who is in Cochabamba, a city of 700,000 in the foothills of the Andes. “You can live here on $700 per month, including rent.”
He says his electric bill is less than $30 a month. He pays $3 per month for gas, which is used for stoves and hot water heaters. And a typical meal costs about $2 to $3 at good local restaurants.
Cost of living (housing included) for an expat couple in Bolivia: $700 to $1,400 (for a single, assume about 1/3 less).
2. Bali
Scoring 95 points, Bali takes second place in the “Cost of Living” category of the Annual Global Retirement Index (and was 16th in the overall rankings).
The tropical Indonesian island of Bali, also known as the “Island of the Gods,” is one of the prettiest places on Earth. While only about the size of Delaware, this little paradise contains dozens of gorgeous white and black sand beaches, incredible waterfalls, volcanoes, terraced rice fields, secret gardens, and primeval jungles.
“Several couples I’ve met who live in the quiet, seaside communities of Sanur and Canggu say that they live comfortably on budgets of less than $1,500 per month, which includes rent on a two-bedroom house, all utilities, eating out frequently, and buying some imported foods,” says Justice. “Some upscale towns like Seminyak and Legian are more expensive, but they’re still affordable when compared to U.S. prices.”
“Furnished two-bedroom houses in Sanur that include small yards and private pools range from around $450 to $800 per month, while well-furnished three-bedroom apartments in desirable neighborhoods throughout the popular southern beach areas rent for $550 to $1,500 per month.”
Bali’s airport is in the centrally located city of Denpasar. For the vast majority of people living here, home is less than an hour’s drive away from the airport. One-way flights to Bali from San Francisco start at around $475, and from Los Angeles, they cost $587. Roundtrip flights from the West Coast start at $800. There aren’t any direct flights between Bali and the U.S., so folks will need to change planes in Taipei, Istanbul, Tokyo, Singapore, or another transportation hub along the way.
Budding expats who find appealing the idea of living on a tropical island with an idyllic climate, friendly locals, a thriving expat scene, and an affordable lifestyle should have Bali on their short list.
Cost of living (housing included) for an expat couple in Bali: $1,006 to $1,936 (for a single, assume about 1/3 less).
1. Vietnam
Vietnam takes the top prize in the “Cost of Living” category of ILs’ 2022 Annual Global Retirement Index, scoring well: 96 out of 100 (it placed 18th in the overall rankings).
The country offers welcoming locals, gorgeous scenery, a unique culture, and an astoundingly low-cost, high-quality lifestyle. Expat couples can enjoy the benefits of living in modern, comfortably furnished homes and apartments in good neighborhoods, eat meals out regularly, have a housekeeper, and indulge in plenty of travel and extras, all on a budget that will probably never exceed $1,500 per month.
“One of Vietnam’s best bargains is its medical care,” says Justice. “Same-day appointments with a specialist at an international hospital cost $20 or less, including a translator; my English-speaking dentist charges $15 for a check-up, X-rays, and cleaning. Most medications that would require a prescription in the U.S. can be purchased over the counter in Vietnam; prices tend to be about 10% of those charged in the U.S. for the exact same product.”
Vietnamese cuisine is one of the freshest in the world, and it’s one of the things that attract so many visitors. A meal for two at a sit-down local restaurant generally costs less than $10 including beer or soft drinks, and even a meal at an upscale Vietnamese restaurant rarely comes to more than $25 for two people, including beverages.
Entertainment is also inexpensive in Vietnam. Watch the latest Hollywood blockbuster at the theater for $4, or gain admission to one of the many excellent museums throughout the country for just $2 or $3. Fitness clubs will often offer promotions if you agree to purchase a six month or annual membership; it works out to around $25 per month at most of the better fitness centers.
Vietnam is a young and energetic country that has a lot to offer expats. It is a long country that stretches from China in the north to the Gulf of Thailand in the south. Beach lovers will enjoy exploring more than 2,000 miles of coastline.
Cost of living for an expat couple in Vietnam: $899 to $1,469 (for a single, assume about 1/3 less).
More details on the top four countries in the Cost of Living category of International Living’s Annual Global Retirement Index 2022 can be found here: The Cheapest Places in the World to Live in 2022.
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