5 ‘Most Affordable’ Foreign Retirement Havens of 2019

Retirement money goes a long way in Phnom Penh, Cambodia.

There are plenty of reasons Americans consider becoming ex-patriots in retirement, but a common theme is that their retirement savings can provide them a higher standard of living and last longer in lots of foreign countries than it will in Florida, Arizona or anywhere else in the states.

“Part of what makes a country a good bet for retirement is its affordability,” says Jennifer Stevens, Executive Editor at InternationalLiving.com, a leading authority for those looking for global retirement or relocation opportunities. “It’s that simple. So we assess the value baby boomers get for their dollars overseas and come up with a short list of the spots where greenbacks stretch the most.”

That would be the countries around the world that top the Cost of Living category of International Living’s annual Global Retirement Index.

“In these low-cost communities, folks can live well on a modest budget, meaning they could afford indulgences like a housekeeper or regular meals out as well as enjoy the security net of affordable healthcare and accommodation.”

Southeast Asia, with its tropical climate, mouth-watering food and plentiful beaches, is one of the world’s most popular tourist and retiree destinations. This plus its affordability makes the region particularly attractive for those ex-pats willing to relocate halfway around the world, as you will see in the following list of countries that score highest for “affordable retirement” in 2019, as determined by InternationalLiving.com:

Cambodia

Retirement money goes a long way in Phnom Penh, Cambodia.

For the fourth year in a row, Cambodia takes the top prize in the Cost of Living category of the Annual Global Retirement Index, scoring full marks: 100 out of 100.

When folks dream of visiting Cambodia they are initially more likely influenced by the exotic draw of its ancient temples, royal palaces and saffron-robed monks or the beautiful beaches and undeveloped islands on the southern coast than anything else. But the low cost of living leaves them astonished. Cambodia is a place where retirees can upgrade their lifestyle to one of luxury on a modest budget.

“Living in Cambodia has been a game changer for me,” says Paul Howard, 68. “The lifestyle I can afford is amazing and I feel a real sense of financial freedom compared to my old life.”

Howard has lived in the capital, Phnom Penh, for two years, lured by the incredibly low costs he observed on a vacation to the country.

“The rent for my Western-style apartment is $275 a month, and even with utilities, air conditioning, and cable television, I only pay $380 for everything,” he says. “You can’t imagine the difference in my life. Living in Cambodia means I never have to worry about what things cost, as it’s all so affordable. You name it, and I guarantee you can get it for a fraction of the price back home.”

Vietnam


Southeast Asia’s rising star,Vietnam, takes second place for Cost of Living, just one point behind Cambodia, at 99.

St. Louis natives Esther and Lloyd Bedik live in Da Nang, the largest city in Central Vietnam. The Bediks rent a two-bedroom apartment overlooking the Han River, which runs right through the city.

“Our apartment is about 1,200 square feet, and it came fully furnished, even with a built-in oven, which is quite unusual for Vietnam,” Esther says. “The best thing is the view of the riverfront from the balcony and from our bedroom. We could live much less expensively, but the view made me feel like I had to have this apartment.

“Our rent is $800 per month, and it includes parking, as well as use of the pool and gym. It would be way more than we could afford in the States. In St. Louis, we’d be paying around $2,200 per month for a comparable apartment with a view of the Mississippi.

Thailand


Lured by the rich culture, first-class healthcare, and low cost of living, an increasing number of expats are calling Thailand home. The country—taking third place with 94 points—offers a wide range of great retirement options from vibrant towns and cities to laidback beach spots and highlands.

The country’s second-largest city, Chiang Mai, is well known as being one of the top places for retirees to settle and upgrade their lifestyle.

“The chance to live an opulent, resort lifestyle is at your fingertips,” says Rachel Devlin, InternationalLiving.com’s Chiang Mai correspondent. “You’ll find the top resorts offering gym memberships to local expats—they’re a bargain. For just over $500 a year, you can have a membership to the Rati Lanna Resort & Spa

(tie) Peru


Peru and Bolivia tied for fourth place with 92 points. Machu Picchu is by far one of the most iconic landmarks in South America but there is much more to Peru than this ancient Inca citadel. Miles of unspoiled beaches, hundreds of other archeological sites, colorful colonial cities, and dense tropical jungles. And all of it is remarkably low cost.

Walter Rhein, 43, is originally from Wisconsin but has been living in Peru on and off for the past 17 years. “Renting a nice apartment in Miraflores [an upscale district of Lima] is going to start at $800 a month,” Walter says. “Once you get to $1,000, you’re starting to get ones with a nice ocean view. You could probably keep it to another $1,000 for food and entertainment. And then your healthcare is inexpensive. I could still live here for under $1,000 a month, if necessary.”

Pharmaceuticals is another big factor, Rhein says. “Any medications you are taking, across the board, cost a fraction of what you would spend in the U.S. And that’s probably a large part of the cost that most people who are retiring are spending.

(tie) Bolivia

From adventurous mountaineering routes, to the lush Amazon Basin, and the Uyuni Salt Flats, Bolivia attracts visitors in droves each year. But with warm, welcoming people and a low cost of living, more and more expats are calling the Andean nation home.

Cochabamba in Bolivia’s central highlands is a popular choice among expats in looking for a slow lifestyle and access to creature comforts from home. Eating out is an affordable pleasure, from the high end right down to street-food outlets with restaurants serving fried or rotisserie chicken piled high on top of rice and fries for about $1.50 to $2. Low-cost healthcare and real estate also make the country an attractive choice for those looking to stretch those retirement dollars.

More details on the top five countries in the Cost of Living category of International Living’s Annual Global Retirement Index 2019 can be found here: The Cheapest Places in the World to Live in 2019

Brian Anderson Editor
Editor-in-Chief at  | banderson@401kspecialist.com | + posts

Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.

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