Best Budget Destinations to Retire
Retiring abroad lets you stretch your savings while enjoying a new lifestyle, culture, and climate. This strategy aligns with the concept of geoarbitrage, where retirees can leverage currency differences and lower living costs in other countries to maximise their financial resources. Many destinations worldwide provide affordable living costs, excellent healthcare, and a high quality of life—all without breaking the bank. Whether you’re seeking tropical beaches, bustling cities, or tranquil countryside, here is my list of the best destinations to retire on a budget with approximate costs in USD and EUR for better comparison.
1. Portugal
Portugal is a peaceful and picturesque country known for its warm weather, friendly locals, and stunning coastline. The country’s reliable infrastructure, affordable healthcare, and relaxed pace of life make it especially appealing to retirees.
Cost of Living Highlights
• Rent for a one-bedroom apartment outside city centres: $500–$800 (€460–€730) per month.
• A meal at a local restaurant: $10–$15 (€9–€14).
• Portugal’s Non-Habitual Resident (NHR) tax scheme provides tax breaks for foreign retirees.
Popular Areas for Retirees
• Algarve: Known for its sunny weather, beaches, and golf courses.
• Lisbon Suburbs: Affordable living near the capital’s amenities.
• Porto: A charming city with a slower pace and rich culture.
2. Mexico
Mexico offers a vibrant culture, delicious cuisine, and diverse landscapes, from beach towns to mountain villages. Its proximity to the U.S. and Canada makes it convenient for retirees who want to stay connected to a North American home.
Cost of Living Highlights
• Rent for a furnished one-bedroom apartment: $400–$800 (€370–€730) per month.
• A meal at a local restaurant: $5–$10 (€4.50–€9).
• Healthcare is high-quality and affordable, with many private hospitals offering services at a fraction of U.S. costs.
Popular Areas for Retirees
• Lake Chapala: A large expat community with a mild climate.
• San Miguel de Allende: A picturesque town with a rich artistic culture.
• Mérida: A safe city with colonial charm and low living costs.
3. Thailand
Thailand is a Southeast Asian gem offering retirees an exotic lifestyle with beautiful beaches, rich culture, and friendly locals. The combination of modern cities and serene rural areas means there’s something for everyone.
Cost of Living Highlights
• Rent for a modern one-bedroom apartment outside Bangkok: $300–$500 (€275–€460) per month.
• Delicious street food meals: $2–$5 (€1.80–€4.60).
• Healthcare is top-notch and reasonably priced, with many expats choosing Thailand for medical tourism.
Popular Areas for Retirees
• Chiang Mai: Known for its laid-back vibe and affordable living.
• Hua Hin: A seaside town with a quieter pace of life.
• Bangkok: Has all the amenities you would expect of a major city at reasonable prices.
4. Colombia
Colombia boasts vibrant cities, breathtaking natural beauty, and a welcoming atmosphere. The warm climate and affordable cost of living make it increasingly popular among retirees seeking a fresh start.
Cost of Living Highlights
• Rent for a one-bedroom apartment in Medellín: $400–$600 (€370–€550) per month.
• Fresh produce and meals at local eateries: $2–$5 (€1.80–€4.60).
• High-quality healthcare is available for a fraction of U.S. costs.
Popular Areas for Retirees
• Medellín: The “City of Eternal Spring” offers mild weather and an active expat community.
• Cartagena: A colourful, historic coastal city.
• Pereira: A quieter city surrounded by coffee plantations.
5. Vietnam
Vietnam offers a mix of traditional culture and modern amenities, with bustling cities and tranquil coastal areas. Retirees enjoy the low cost of living and opportunities for exploration in this dynamic country.
Cost of Living Highlights
• Rent for a one-bedroom apartment: $300–$500 (€275–€460) per month.
• A local meal is $2–$5 (€1.80–€4.60), while Western meals are around $10 (€9).
• Healthcare services are affordable, with private hospitals offering excellent care.
Popular Areas for Retirees
• Da Nang: A coastal city with a relaxed atmosphere.
• Hanoi: Vietnam’s historic capital with a vibrant culture.
• Ho Chi Minh City: A dynamic city with modern conveniences.
6. Ecuador
Ecuador offers incredible natural diversity, including the Andes, Amazon Rainforest, and Pacific coast. The country’s mild climate and warm, welcoming locals add to its charm for retirees.
Cost of Living Highlights
• Rent for a one-bedroom apartment: $300–$500 (€275–€460) per month.
• Fresh produce at local markets: incredibly inexpensive, with groceries often costing $20–$30 (€18–€28) per week.
• Healthcare costs are among the lowest in South America.
Popular Areas for Retirees
• Cuenca: A UNESCO World Heritage city with a large expat community.
• Quito: The country’s capital, with a mix of old and new.
• Salinas: A beach town with affordable oceanfront living.
7. Bulgaria
Bulgaria is an underrated European destination with low costs, a rich history, and a mix of mountains and seaside. It offers retirees a chance to enjoy Europe’s charm without the high expenses.
Cost of Living Highlights
• Rent for a one-bedroom apartment outside city centres: $300–$400 (€275–€370) per month.
• A three-course meal for two at a mid-range restaurant: $20 (€18.50).
• Utilities and public transportation are very inexpensive.
Popular Areas for Retirees
• Sofia: The capital city offers modern conveniences and history.
• Plovdiv: A charming city with a laid-back vibe.
• Black Sea Coast: Coastal towns like Varna offer affordable seaside living.
8. Nicaragua
Nicaragua is a nature lover’s paradise, offering lush forests, volcanic landscapes, and serene beaches. Its relaxed pace and low costs make it ideal for retirees seeking a simpler life.
Cost of Living Highlights
• Rent for a one-bedroom apartment: $300–$400 (€275–€370) per month.
• Local meals and groceries are incredibly affordable, often costing $2–$5 (€1.80–€4.60) per meal.
• Healthcare is of good quality and costs a fraction of what you’d pay in Western countries.
Popular Areas for Retirees
• Granada: A colonial city with affordable housing.
• San Juan del Sur: A lively beach town.
• Leon: A cultural hub with a youthful energy.
9. Bali, Indonesia
Bali, often called the “Island of the Gods,” is a tropical paradise known for its stunning beaches, lush rice terraces, vibrant culture, and welcoming locals. The island offers an affordable and peaceful lifestyle, making it an increasingly popular destination for retirees seeking tranquillity and adventure. Bali’s charm lies in its ability to provide both a peaceful and vibrant lifestyle, catering to retirees who love nature, culture, and community. The island’s affordability, especially compared to Western countries, makes it a dream retirement destination for those seeking an exotic yet comfortable experience.
Cost of Living Highlights
• Rent for a one-bedroom villa with a pool: $500–$800 (€460–€730) per month, depending on location.
• Local meals at warungs (small eateries): $2–$4 (€1.80–€3.70), while Western-style meals at restaurants are about $8–$12 (€7–€11).
• Utilities, including electricity, water, and internet, average $50–$100 (€45–€90) per month.
Living Features
• Bali boasts excellent weather year-round, with a tropical climate and plenty of sunshine.
• Its vibrant expat community ensures you’ll find social opportunities and connections.
• Affordable and high-quality wellness services, such as yoga and massage, are widely available.
Popular Areas for Retirees
• Ubud: Known for its cultural scene, yoga studios, and serene rice paddies.
• Sanur: A quieter beachside town with a laid-back vibe, ideal for retirees.
• Canggu: Trendy and lively, offering cafes, restaurants, and a mix of traditional and modern living.
10. Slovenia
Slovenia is a hidden gem in Europe, offering stunning natural beauty, charming towns, and a relaxed lifestyle. Known for its clean environment, safety, and high quality of life, Slovenia is an excellent choice for retirees seeking affordable living in a peaceful setting. Slovenia’s balance of affordability, safety, and natural beauty makes it an ideal retirement destination for those who want to enjoy Europe without the high costs of Western countries.
Cost of Living Highlights
• Rent for a one-bedroom apartment outside city centres: $400–$600 (€370–€550) per month.
• A three-course meal for two at a mid-range restaurant: $30–$40 (€28–€37).
• Monthly utilities, including electricity, heating, cooling, and water: $150–$200 (€140–€185).
Living Features
• Slovenia is home to stunning landscapes, including the Julian Alps, Lake Bled, and the Adriatic coast.
• The country boasts excellent healthcare and public infrastructure, comparable to Western Europe but at lower costs.
• Its central location makes it easy to travel to neighbouring countries like Italy, Austria, and Croatia.
Popular Areas for Retirees
• Ljubljana: The capital city combines old-world charm with modern amenities.
• Bled: Famous for its picturesque lake and tranquil surroundings.
• Piran: A coastal town with a Mediterranean vibe, perfect for seaside living.