Two new studies reveal places where relying on Social Security benefits can still mean a comfortable standard of living in retirement
Living in retirement on as little as $2,000 a month or $24,000 a year is not something most Americans would like to negotiate, but with many facing the prospects of retiring with no money saved in traditional retirement accounts like pensions, 401(k)s or IRAs and expecting to rely almost solely on Social Security, it is a reality for millions.
According to the Social Security Administration, the average monthly Social Security check to a retired worker in 2024 is $1,907, or $22,884; and $3,033 or $36,396 for a married couple both receiving benefits. Yet the U.S. Bureau of Labor Statistics says the average household run by an American older than 65 spends $52,141 per year (approximately $4,345 a month).
So a lot of these folks relying heavily on Social Security would stand to benefit by retiring in a place where those Social Security checks go a lot further.
For the latest look at such places, we turn to a pair of new studies—one from our friends at International Living, which just released its “5 Most Affordable Retirement Havens of 2024,” and one from GOBankingRates, which on Jan. 1 released its list of the “7 Safest Places To Retire in the U.S. for Under $2,000 a Month.”
Next page: 5 Most Affordable Retirement Havens of 2024
5 Most Affordable Retirement Havens of 2024
A new report from the editors at International Living explores the five countries that offer expat retirees the best quality of life at the lowest cost. These are the countries that scored the best in the Cost of Living category of International Living’s 2024 Annual Global Retirement Index.
“Affordability is one of the most important qualities of a great retirement destination,” says Jennifer Stevens, executive editor for International Living, “especially if you’re trying to stretch savings, pensions, and Social Security as far as possible. Those are exactly the places that top the Cost of Living category of the Global Retirement Index.
“In fact, the bang for your buck in these places is so great that even a modest budget of around $2,000 a month for a couple leaves room for indulgences like a housekeeper or a gardener—or both. Real affordability makes for a rich quality of life in retirement in these countries that top our Retirement Index’s Cost of Living category. They provide what is arguably the highest quality of life possible for the least amount of money.”
The five countries that score best in the Cost of Living category are:
5. Mexico
Whether you like a warm climate with a constant sea breeze, a hot and dry semi-arid or desert climate, or you want to be somewhere cool enough that you’ll need to wear a jacket in the evenings year-round, Mexico offers unlimited choices…all for a fraction of what you’d pay in the U.S.
It’s an excellent retirement destination for any budget. A typical monthly budget for two people living a comfortable, middle-class lifestyle will not likely exceed $2,000. More often than not, it’s certainly possible to get by spending much less than that.
Bel Woodhouse, IL’s Mexico Correspondent, says, “I live comfortably on $1,000 a month, including my treats like big wedges of creamy brie and wine. My rent is only $500 a month, and my apartment (in a top-safe neighborhood) is two blocks from the Caribbean shore, so I can go snorkeling and swimming to start my day.
4. Ecuador
The low cost of living is the No. 1 reason many expats move to Ecuador. It can be a tremendous advantage, particularly if you are on a fixed income. Rental prices are a fraction of the cost of those in the U.S. or Europe, and if you buy property, taxes will be significantly lower than in your home country.
In Ecuador, you can not only retire on a lot less money, but you can also live very well on a limited budget of less than $25,000 per year. If you are single, expats on the ground report, it’s possible to get by on as little as $1,000 a month, but that would see you living simply. Plan on something closer to $1,500 a month for a lifestyle in a place like Cotacachi or Cuenca where that would provide you enough to eat out regularly, travel some, and enjoy your life without counting pennies all the time.
“My husband and I moved to Cuenca in 2019,” says Fiona Mitchell, IL Ecuador contributor, “after he retired from the Coast Guard. We are able to live comfortably here on his military pension, renting an attractive two-bedroom apartment, and can still put money aside every month into savings or toward travel. We also own a car, which is not an essential but allows us to get into the mountains more easily for hiking adventures—which we are able to enjoy on weekdays now, since neither of us needs to be tied to a full-time job. If we were living in the States or Europe, we would both still have to work full-time to supplement the pension and wouldn’t be able to enjoy the quality of life we have here in Ecuador.”
3. Malaysia
When looking for a place to retire, the cost of living is often the No. 1 concern for people worried about outliving their nest eggs. Yet most people—single, couples, even families with kids—don’t relish the idea of sacrificing quality of life to ensure they can afford their day-to-day expenses. If you want all the comforts of home (and then some)—but want them at a truly low price—Malaysia is just the place.
“My wife, Lisa, and I vacationed in Malaysia in 2008, and at that stage, we were taking at least two holidays a year somewhere in Asia,” says International Living’s Malaysia Correspondent Keith Hockton. “When we got back and did the math, we realized that we could actually live in Malaysia and vacation back home, effectively reversing our situation and saving a heap of money. We started to make plans to do just that and moved to Penang in early 2010.”
In Malaysia, you can retire comfortably on a shoestring budget, but you can also live like a king on more. A couple can live very happily on $2,000 per month. And if you are single, you can live very well on just $1,000 a month.
You may not be able to live in the ritzier areas, but you don’t have to. Living in beach suburbs like Batu Ferringhi can trim your rental costs significantly. There, a 1,000-square-foot three-bedroom apartment with sea views can cost as little as $300 per month.
2. Thailand
Thailand is not only an affordable place to retire but also a country that offers a diverse range of lifestyles to suit many budgets. You don’t even have to get sand on your feet to fall in love with ways of life in the “land of smiles.”
New expats often search for the magic number for cost of living, but it depends on so many factors. A couple can live a comfortable lifestyle in some northern Thailand destinations from $1,700 a month. In more popular, tourist locations like Phuket, Koh Samui, and Pattaya plan on around $2,200 a month.
“Expats tend to live simpler lifestyles, and that impacts positively on the budget,” says IL contributor and expat Rachel Devlin. “A perfect starting point is between $2,000 and $2,500 to live comfortably, including some luxuries, like weekends away.”
A modern one-bedroom apartment in trendy Sukhumvit, Bangkok, close to the train station and nightlife, will set you back only $829 per month. If you are looking for sun and sand with an isolated beach, Koh Samui is simply luxurious. A one-bedroom stylish, resort-style villa will well be worth the $830 monthly. This price also includes a pool boy and a maid.
1. Colombia
One of the main benefits of living in Colombia is its low cost of living. The country offers many of the amenities and infrastructure you’d expect in a much more expensive country.
Foreign residents can live quite comfortably in affluent areas, starting at $1,000 per month in smaller cities like Manizales and Pereira and $2,000 per month for popular cities like Medellin. Compared to many North American cities like New York and Toronto, Bogota tends to have lower rental prices than cities like Medellin and Cartagena, and you can find a two-bedroom home for $1,000 a month.
In Bogota, rent can start around $700 per month for an apartment in a very nice area. Smaller cities like Cali, Pereira, and Bucaramanga will see prices starting closer to $500 per month.
“I pay $650 a month for a modest one-bedroom that faces the Caribbean Ocean, much less than most foreigners pay. I had many conversations with locals and property managers to learn about the local renting market. Like it or not, foreigners often get charged a lot more, and knowing your neighbor will help you learn what’s considered ‘normal’ in terms of pricing,” says International Living contributor Michelle Thompson.
The full report on the top five countries in the cost-of-living category of the Annual Global Retirement Index can be found here: The Cheapest Places in the World to Live in 2024.
Next Page: 7 Safest Places To Retire in the U.S. for Under $2,000 a Month
7 Safest Places To Retire in the U.S. for Under $2,000 a Month
To find the safest places to retire for $2,000 or less each month, GOBankingRates surveyed 1,002 Americans aged 18 and older from across the country. Respondents shared income, expenditures, and information about job security. The results show that retirees can still live a comfortable life even with a budget of $2,000 or less in certain cities.
This study provides valuable insights for anyone looking to retire on a budget, as it highlights cities and towns that offer a good quality of life while also being affordable. It is notable that six of the seven cities listed are suburbs of bigger metropolitan areas, with three being different suburbs of Cleveland.
From the highest to lowest amounts of monthly expenditures, here are some of the safest and cheapest cities to retire.
Parma Heights, Ohio
Parma Heights is a city in Cuyahoga County, Ohio. The city’s population was 20,863 as of the 2020 census. A suburb of Cleveland, it is a part of the Cleveland metropolitan area.
- Monthly expenditures: $1,832.95
- 2022 one-bedroom rent: $905.78
- Livability: 76
- Monthly healthcare cost: $502.95
- Monthly grocery cost: $424.23
Farmington, Michigan
Farmington is a city in Oakland County. A northwestern suburb of Detroit, Farmington is located roughly 20 miles from downtown Detroit. As of the 2020 census, the city had a population of 11,594.
- Monthly expenditures: $1,794.60
- 2022 one-bedroom rent: $1,001.22
- Livability: 94
- Monthly healthcare cost: $363.01
- Monthly grocery cost: $430.36
Willoughby Hills, Ohio
Willoughby Hills is a city in Lake County, Ohio, that is a suburb of Cleveland along the Chagrin River. The population was 10,019 at the 2020 census.
- Monthly expenditures: $1,784.75
- 2022 one-bedroom rent: $974.11
- Livability: 74
- Monthly healthcare cost: $380.28
- Monthly grocery cost: $430.36
North Royalton, Ohio
North Royalton is a city in Cuyahoga County, Ohio, and is yet another suburb of Cleveland. The population was 31,322 as of the 2020 Census.
- Monthly expenditures: $1,780.38
- 2022 one-bedroom rent: $962
- Livability: 67
- Monthly healthcare cost: $376.19
- Monthly grocery cost: $442.19
College Station, Texas
College Station is a city in eastern Texas. It’s home to the main campus of Texas A&M University, and had a population of 120,019 as of 2021.
- Monthly expenditures: $1,726.84
- 2022 one-bedroom rent: $844.67
- Livability: 79
- Monthly healthcare cost: $457.51
- Monthly grocery cost: $424.66
Clute, Texas
Clute is a city in Brazoria County, Texas, within the Houston metropolitan area. As of the 2020 census, the city population was 10,604.
- Monthly expenditures: $1,688.09
- 2022 one-bedroom rent: $847.11
- Livability: 72
- Monthly healthcare cost: $420.26
- Monthly grocery cost: $420.72
Bellevue, Nebraska
Bellevue is a suburban city in Sarpy County, Nebraska that is part of the Omaha-Council Bluffs metropolitan area, and had a population of 64,176 as of the 2020 census
- Monthly expenditures: $1,687.19
- 2022 one-bedroom rent: $886.11
- Livability: 84
- Monthly healthcare cost: $376.19
- Monthly grocery cost: $424.23
SEE ALSO:
• 2024’s 10 Best Places in the World to Retire
• One State Sweeps Top 5 in U.S. News 2024 ‘Best Places to Retire’ Rankings