When you think of Bermuda, you might think of its namesake shorts or its beautiful pink sand beaches. You can also now think of it as the world’s most expensive place to retire, according to a new study.
Online financial services provider NetCredit crunched the numbers to find out what it would cost to retire comfortably in (almost) every country around the world (see graphic at bottom of page).
The most expensive place turned out to be Bermuda, technically a British Overseas Territory located in the North Atlantic about 650 miles east of Cape Hatteras, N.C. The study found an average American would need over $1 million to retire in Bermuda—or $1,065,697, to be precise. It was the only place to top $1 million in the study.
Other “most expensive places to retire” on the list are considerably farther away from the U.S. Two Asian economic powerhouses—Singapore and Hong Kong—rank second and third, respectively. To retire in Singapore one would need almost $950,000, and in Hong Kong, $871,000.
NetCredit ranks Switzerland as fourth-most expensive (and most expensive European country) to retire in with an estimated pot of $842,000. To retire in Luxembourg one would need $758,000, while a retirement in the Nordic countries like Iceland, Norway and Denmark would set a retiree back between $645,000 and $678,000.
Retiring to Israel—the most expensive country for retirement in the Middle East—would cost $632,000. (Article continues below graphic)
U.S. ranks as 14th most expensive
How did the study find the U.S. by comparison?
Fourteen years of retirement in the U.S. would cost $601,489.63 according to NetCredit’s metric, coming out to $40,917.66 per year or $2,841.50 per month.
“We found 125 countries where retirement is cheaper than in the U.S. and only 13 that are more expensive,” the study notes. Retirement in Canada would cost an estimated $496,000, and only $257,000 in Mexico. Costa Rica, which International Living ranked as the best country in the world for retirement in 2021, would require $370,432.
NetCredit’s calculations are based on the average American retirement age of 64 years and the average American life expectancy of 78.4 years. Monthly living costs were collated from Numbeo for 124 countries, which includes estimates for rent, food and dining, vacations, and a variety of other living expenses in cities and countries around the globe.
The team then multiplied that by 176.4 = 14 years and 8.4 months between retirement age and life expectancy. To allow for a more comfortable retirement, the figures were further revised up by 20%.
Cheapest places to retire
On the other end of the spectrum from Bermuda would be Pakistan, which the study found to be the cheapest country in the world for retirement. The average American would need just $182,018 to maintain the study’s example lifestyle in Pakistan.
Next on the list was India (seemed to work for strapped British retirees in the movie, “The Best Exotic Marigold Hotel”), at about $184,000. Next up was Kyrgyzstan at $191,000, with Uganda in Africa ranking fourth ($213,498) and Turkey fifth ($214,083).
In Georgia—the cheapest European country for retirement—it would cost around $215,000, about the same as in South American countries like Colombia or Brazil. The most expensive country for retirement in South America is Uruguay, at about $351,000.
The study is part of a series of campaigns produced by NetCredit to support its audience in striving to get ahead in their lives—with a major part being planning for retirement.
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