For most people, relaxing on the beach with their toes in the sand and a frozen beverage in-hand means they are on vacation. But it doesn’t have to be that way. Living the island life permanently after retirement is more affordable than most 401k savers would think—if only one knows where to look.
Sure, the most popular Caribbean locales can be pricey. But on several smaller, lesser-known islands, the cost of living is surprisingly cheap.
Ex-pat experts at International Living ranked five spots off the coasts of Belize, Nicaragua, Honduras and Mexico as the best places for retirees to live out their golden years on an island in the sun.
- Isla Colón, Panama
For water-lovers, this is truly paradise. Part of Bocas del Toro—a tropical archipelago made up of nine islands and hundreds of tiny cayos and islets—Isla Colón is home to Bocas Town. A waterfront city bustling with ex-pats, residents gravitate toward aqua activities like whale watching, fishing and other water sports. When the mood strikes, it’s easy to hop from island to island on convenient water taxis. Plus, stunning scenery extends all around; the area is protected thanks to its status as a national park. As if it could get better, living here can cost as little as $1,000 a month.
- Las Terrenas, Dominican Republic
Want to bum around on one of the finest beaches in the Caribbean? Or play a gorgeous round of golf on a tropical island? For the feel of a resort town sans resort (thanks to current laws in place), look no further. The nearly new beach town of Las Terrenas was made-over less than 30 years ago by French and Italian visitors who loved it so much, they moved there in droves. Now its pristine beaches are lined with charming cafes, restaurants and beach hotels, none of which are part of a chain (again thanks to laws). Amazingly, one-bedroom loft apartments sell for around $100,000 and ex-pats can live comfortably on $2,000 to $3,000 a month.
- Isla Mujeres, Mexico
When visiting Cancún, it’s impossible to not be in awe of the incredibly white sand juxtaposed against unbelievably blue water. The crowds, however, are a lot less awesome. But just an eight-mile boat ride away, the good life awaits on Isla Mujeres. Locals spend time swimming with turtles, diving for coral and catching glimpses of dolphins when they’re not busy buzzing around town on golf carts—the preferred method of transportation on land. One-bedroom apartments here rent for as low as $700 and penthouse apartments sell for around $230,000.
- Roatán, Honduras
Looking to step away from the go, go, go typical of American life? Roatán’s the place to do it. On this slow-paced island, popular pastimes include diving and golfing. By happy chance, the real estate market has yet to bounce back fully from 2008, so property costs little and the ex-pat population is thriving. A two-bedroom waterfront home on this green, hilly haven goes for around $175,000.
- Ambergris Caye, Belize
A half-mile offshore of Ambergris Caye—Belize’s largest island—is the Belize Barrier Reef. Part of the largest reef in the northern hemisphere, and one of the most intact thanks to Belizean government regulations, this natural wonder is home to sea turtles, manatees, over 500 species of fish and 106 species of coral. For obvious reasons, divers and fishermen were the first to flock to this oceanic wonderland, and now ex-pats are following suit. Transitioning here is a breeze since the island is primarily English-speaking, and the cost of living ranges from $2,000 to under $3,000 a month.