Eight of the Best Countries for Americans to Retire To (That Aren’t the US)

Everyone’s vision of what retirement looks like is different. Some dream of traveling the world, while others look forward to an afternoon nap that lasts decades. The one thing an increasing number of people agree on? It's a challenge to afford retirement in the United States.

Only half of Americans have retirement savings at all, and most who do don’t have nearly enough stashed away in them to actually live on. In fact, more than 17 million Americans over the age of 65 are financially insecure. Meanwhile, the cost of living in the U.S. keeps going up, even as safety nets like Medicaid are having their strings cut. Put that all together and it’s no surprise that a rising number of folks are looking into retiring abroad, to countries where their dollars will stretch a lot further.

Just because the cost of living is low doesn’t mean a country is a great choice for retirement, however. You need to find a balance between cheap living and other factors, like healthcare and security. Plus, you have to find countries where the income requirements for residency are low enough for your small nest egg to qualify you to move there—and if you’re going to rely solely on Social Security payments in your retirement, you need countries where the cost of living falls below the average payment, which is currently $1,976.

After considering all those factors—and recognizing that every person's needs are different—here are eight countries where you can retire on the cheap and still live well.

Costa Rica

A single person can live on about $900 per month (not counting rent) in Costa Rica, which is considered a modern, stable country with an excellent healthcare system. There’s already a robust expatriate community of Americans living in there, which can make for a softer transition if you don’t speak Spanish well and/or haven’t lived abroad before. Of course, all those expats are also pushing the cost of living up, so don’t assume your budget will work indefinitely, but it's still going to be significantly cheaper than almost anywhere in the U.S.

Income requirement: $1,000 per month

Panama

You can get by in Panama for around $800 per month (excluding rent), and the U.S. dollar is an official currency in the country so you don’t have to worry about converting your cash. Panama openly courts American retirees, and offers tons of discounts and benefits to lure them there. You’ll need to apply for a Visa in Panama, you’ll need a Panamanian attorney, and you’ll probably need to learn Spanish, but once you’re there, you’ll enjoy a stable, thriving culture and a relatively easy trip back to the States if you want to visit family and friends.

Income requirement: $1,000 per month plus $250.00 per month for each dependent

France

Believe it or not, one of the world’s top tourist destinations is also a terrific spot to retire. The cost of living (not including rent) is a little higher at about $1,100 per month, but you’ll get access to one of the best healthcare systems in the world for a fraction of what it would cost here. The U.S. also has a tax treaty with France, so your retirement accounts will be taxed at U.S. rates instead of the much higher French rates. France is a complex country, though, so you’ll probably need to hire a French attorney to go through the process of retiring there—and you definitely have to learn some French.

Income requirement: Three times the monthly minimum wage (currently about $2,100)

Malaysia

Malaysia is incredibly affordable—though income requirements are higher, the cost of living for a single person is only around $550 per month (not including rent), and the rents aren’t very high, either. The country boasts a top-notch healthcare system, and English is well-supported there. But be careful: Getting to and from Malaysia isn’t always easy, so you won’t be flitting back and forth between the U.S. and your retirement home. And it’s a pretty hot, humid place all the time, so don’t choose it if you’re looking to avoid sweating.

Income requirement: $2,370 per month, plus about $83,000 in assets

Spain

Like France, Spain isn’t usually discussed as a retirement option—but it should be. Although the income requirement is relatively high, the cost of living (without rent) is a comfortable $850 or so, which gets you access to a beautiful country with a rich culture that also offers very low crime rates, excellent healthcare, and (it probably goes without saying) incredible food and lifestyle.

Income requirement: $2,700 per month.

Ecuador

Ecuador is super cheap, costing about $535 per month not including rent. Plus, its official currency is the U.S. dollar, so you don’t have to worry about exchange rates. If you’re looking for a lifestyle that focuses on natural beauty, this is the place you want to be. The healthcare system is surprisingly great (and affordable, even if you have to pay for private insurance).

Income requirement: Three times the unified basic salary ($470 per month), so about $1,410

Portugal

Portugal is a gorgeous country with excellent infrastructure, terrific healthcare, and plenty of beautiful spots to call home. Not including rent, its cost of living is a slender $805 per month—but note that you won’t qualify for the free national healthcare until you’ve lived in the country for at least five years, so be prepared to pay for private health insurance as well. On the other hand, Portugal revamped its tax system a few years ago to offer 10 years of tax breaks and exemptions to qualifying expats, which might help offset those costs. English is also very commonly spoken, making it an easy place to transition to.

Income requirement: $1,025 per month

Thailand

If you’re pinching every penny, Thailand might be ideal: The cost of living is a super-low $621 per month (without rent), while the healthcare system is excellent (and affordable), and the country is beautiful. Americans will likely be in for a bit of culture shock, however, so it’s likely a good idea to visit the country first to make sure you’ll be able to adjust and actually enjoy your very cheap retirement.

Income requirement: $2,000 per month