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The 50 Cheapest Countries To Retire To

John Csiszar
·13 mins read

Escaping the daily grind and retiring to an exotic locale where you can spend your golden years exploring and enjoying a new setting might actually make your retirement nest egg go a lot further.

To assist in your retirement planning, GOBankingRates used Numbeo, an online pricing database, to identify 50 countries that are the cheapest in the world to live during retirement. The countries are ranked by four key affordability metrics, and each metric is measured against what you would find in New York City:

  • Cost-of-living index: Includes the costs of local goods and services, such as restaurants, groceries, transportation and utilities

  • Average rent: The typical rental price in the country

  • Groceries index: Includes typical grocery prices in the country

  • Local purchasing power index: Measures the relative purchasing power of a typical salary in that country; a lower purchasing power buys fewer goods, whereas a higher purchasing power buys more

The study also factored in the following quality-of-life metrics for each country:

  • Healthcare index: Includes estimates of the overall quality of the healthcare system, healthcare professionals, equipment, staff, doctors and costs

  • Safety index: Measures the safety of the country on a scale of 0-100; a higher safety index indicates a safer country, whereas a lower safety index indicates a more dangerous country

  • Average temperature: The average annual temperature of the country based on the average annual temperature for major cities in the country

  • Peacefulness index rank: The level of peace in a country according to the Institute for Economics & Peace. The global peacefulness was weighted triple.

Based on a combination of these affordability and quality-of-life metrics, GOBankingRates’ study found that the most affordable places to retire abroad were in the following 50 top-ranked countries. Places are listed in reverse order, with the most affordable place to retire abroad appearing last in the list.

While some countries might not seem significantly cheaper than the U.S., their healthcare, public safety and other metrics make them a relative bargain, even compared with some of the cheapest places to retire in America.

Last updated: Sept. 25, 2020

50. Cyprus

  • Cost-of-living index: 57.93

  • Purchasing power index: 57.41

  • Grocery cost index: 44.21

  • Healthcare quality index: 51.75

  • Safety index: 69.99

  • Peacefulness index rank: 63

  • Average annual temperature: 66.3

49. United Kingdom

  • Cost-of-living index: 67.28

  • Purchasing power index: 91.73

  • Grocery cost index: 51.27

  • Healthcare quality index: 74.46

  • Safety index: 56.29

  • Peacefulness index rank: 45

  • Average annual temperature: 50.4

Read: The Cost To Retire in America’s Sunniest Cities

48. Bosnia and Herzegovina

  • Cost-of-living index: 35.97

  • Purchasing power index: 41.83

  • Grocery cost index: 28.08

  • Healthcare quality index: 52.26

  • Safety index: 56.97

  • Peacefulness index rank: 81

  • Average annual temperature: 50.5

47. Georgia

  • Cost-of-living index: 28.48

  • Purchasing power index: 24.88

  • Grocery cost index: 23.05

  • Healthcare quality index: 51.24

  • Safety index: 79.79

  • Peacefulness index rank: 99

  • Average annual temperature: 55.2

46. Italy

  • Cost-of-living index: 67.26

  • Purchasing power index: 65.59

  • Grocery cost index: 55.44

  • Healthcare quality index: 66.59

  • Safety index: 55.74

  • Peacefulness index rank: 39

  • Average annual temperature: 57.5

45. Greece

  • Cost-of-living index: 55.67

  • Purchasing power index: 43.68

  • Grocery cost index: 41.63

  • Healthcare quality index: 56.21

  • Safety index: 59.68

  • Peacefulness index rank: 65

  • Average annual temperature: 63.9

44. Sweden

  • Cost-of-living index: 69.85

  • Purchasing power index: 101.73

  • Grocery cost index: 60.47

  • Healthcare quality index: 69.23

  • Safety index: 52.93

  • Peacefulness index rank: 18

  • Average annual temperature: 44.5

43. Netherlands

  • Cost-of-living index: 73.75

  • Purchasing power index: 90.73

  • Grocery cost index: 55.87

  • Healthcare quality index: 74.65

  • Safety index: 72.38

  • Peacefulness index rank: 17

  • Average annual temperature: 49.5

42. Canada

  • Cost-of-living index: 67.62

  • Purchasing power index: 95.09

  • Grocery cost index: 63.68

  • Healthcare quality index: 71.58

  • Safety index: 60.33

  • Peacefulness index rank: 6

  • Average annual temperature: 43.1

41. Belgium

  • Cost-of-living index: 71.78

  • Purchasing power index: 86.28

  • Grocery cost index: 58.66

  • Healthcare quality index: 74.34

  • Safety index: 56.02

  • Peacefulness index rank: 18

  • Average annual temperature: 51.0

40. Ecuador

  • Cost-of-living index: 40.98

  • Purchasing power index: 36.08

  • Grocery cost index: 35.46

  • Healthcare quality index: 70.59

  • Safety index: 49.1

  • Peacefulness index rank: 71

  • Average annual temperature: 65.7

39. Costa Rica

  • Cost-of-living index: 53.98

  • Purchasing power index: 42.61

  • Grocery cost index: 49.60

  • Healthcare quality index: 62.42

  • Safety index: 43.67

  • Peacefulness index rank: 33

  • Average annual temperature: 69.0

Also See: These Southern Hidden Gem Cities Are Perfect for Retirees

38. Australia

  • Cost-of-living index: 73.54

  • Purchasing power index: 107.31

  • Grocery cost index: 67.23

  • Healthcare quality index: 77.38

  • Safety index: 58.64

  • Peacefulness index rank: 13

  • Average annual temperature: 62.1

37. Denmark

  • Cost-of-living index: 83.00

  • Purchasing power index: 100.88

  • Grocery cost index: 61.74

  • Healthcare quality index: 80.00

  • Safety index: 74.90

  • Peacefulness index rank: 5

  • Average annual temperature: 46.5

36. Latvia

  • Cost-of-living index: 47.94

  • Purchasing power index: 52.48

  • Grocery cost index: 34.85

  • Healthcare quality index: 62.91

  • Safety index: 63.05

  • Peacefulness index rank: 35

  • Average annual temperature: 44.0

35. North Macedonia

  • Cost-of-living index: 31.59

  • Purchasing power index: 37.15

  • Grocery cost index: 24.94

  • Healthcare quality index: 56.38

  • Safety index: 61.33

  • Peacefulness index rank: 65

  • Average annual temperature: 54.0

34. Panama

  • Cost-of-living index: 54.16

  • Purchasing power index: 34.23

  • Grocery cost index: 53.03

  • Healthcare quality index: 59.93

  • Safety index: 52.81

  • Peacefulness index rank: 47

  • Average annual temperature: 77.3

33. United Arab Emirates

  • Cost-of-living index: 61.98

  • Purchasing power index: 91.58

  • Grocery cost index: 47.63

  • Healthcare quality index: 67.04

  • Safety index: 84.3

  • Peacefulness index rank: 53

  • Average annual temperature: 81.0

Look: 27 Best Strategies To Get the Most Out of Your 401(k)

32. Uruguay

  • Cost-of-living index: 51.04

  • Purchasing power index: 37.46

  • Grocery cost index: 40.12

  • Healthcare quality index: 66.28

  • Safety index: 46.19

  • Peacefulness index rank: 34

  • Average annual temperature: 61.0

31. Japan

  • Cost-of-living index: 83.35

  • Purchasing power index: 87.28

  • Grocery cost index: 81.82

  • Healthcare quality index: 81.14

  • Safety index: 79.34

  • Peacefulness index rank: 9

  • Average annual temperature: 61.9

30. New Zealand

  • Cost-of-living index: 72.53

  • Purchasing power index: 92.66

  • Grocery cost index: 64.69

  • Healthcare quality index: 73.81

  • Safety index: 59.07

  • Peacefulness index rank: 2

  • Average annual temperature: 56.0

29. Albania

  • Cost-of-living index: 36.39

  • Purchasing power index: 29.56

  • Grocery cost index: 28.39

  • Healthcare quality index: 53.05

  • Safety index: 60.48

  • Peacefulness index rank: 51

  • Average annual temperature: 59.0

28. Argentina

  • Cost-of-living index: 32.95

  • Purchasing power index: 47.22

  • Grocery cost index: 25.82

  • Healthcare quality index: 69.25

  • Safety index: 38.23

  • Peacefulness index rank: 75

  • Average annual temperature: 63.9

27. Finland

  • Cost-of-living index: 70.29

  • Purchasing power index: 99.93

  • Grocery cost index: 56.52

  • Healthcare quality index: 75.79

  • Safety index: 76.68

  • Peacefulness index rank: 14

  • Average annual temperature: 40.3

26. Tunisia

  • Cost-of-living index: 27.04

  • Purchasing power index: 34.45

  • Grocery cost index: 25.25

  • Healthcare quality index: 57.18

  • Safety index: 58.12

  • Peacefulness index rank: 82

  • Average annual temperature: 66.0

25. Serbia

  • Cost-of-living index: 35.72

  • Purchasing power index: 36.72

  • Grocery cost index: 25.46

  • Healthcare quality index: 51.27

  • Safety index: 62.59

  • Peacefulness index rank: 50

  • Average annual temperature: 53.5

24. Vietnam

  • Cost-of-living index: 38.34

  • Purchasing power index: 28.14

  • Grocery cost index: 37.06

  • Healthcare quality index: 57.70

  • Safety index: 54.65

  • Peacefulness index rank: 57

  • Average annual temperature: 78.0

Check Out: 50 Best and Worst Retirement Towns

23. Germany

  • Cost-of-living index: 65.26

  • Purchasing power index: 102.36

  • Grocery cost index: 49.23

  • Healthcare quality index: 73.32

  • Safety index: 65.19

  • Peacefulness index rank: 22

  • Average annual temperature: 48.8

22. Nepal

  • Cost-of-living index: 29.05

  • Purchasing power index: 21.90

  • Grocery cost index: 24.91

  • Healthcare quality index: 56.88

  • Safety index: 65.44

  • Peacefulness index rank: 76

  • Average annual temperature: 65.0

21. Kuwait

  • Cost-of-living index: 50.37

  • Purchasing power index: 85.59

  • Grocery cost index: 34.68

  • Healthcare quality index: 56.21

  • Safety index: 65.25

  • Peacefulness index rank: 43

  • Average annual temperature: 79.0

20. Qatar

  • Cost-of-living index: 64.04

  • Purchasing power index: 111.69

  • Grocery cost index: 53.61

  • Healthcare quality index: 73.30

  • Safety index: 88.14

  • Peacefulness index rank: 31

  • Average annual temperature: 81.0

19. Lithuania

  • Cost-of-living index: 44.28

  • Purchasing power index: 57.85

  • Grocery cost index: 33.63

  • Healthcare quality index: 69.49

  • Safety index: 66.94

  • Peacefulness index rank: 38

  • Average annual temperature: 43.7

18. Oman

  • Cost-of-living index: 49.28

  • Purchasing power index: 80.97

  • Grocery cost index: 43.50

  • Healthcare quality index: 58.15

  • Safety index: 79.21

  • Peacefulness index rank: 69

  • Average annual temperature: 84.0

17. Hungary

  • Cost-of-living index: 40.85

  • Purchasing power index: 47.55

  • Grocery cost index: 30.77

  • Healthcare quality index: 47.80

  • Safety index: 64.92

  • Peacefulness index rank: 21

  • Average annual temperature: 51.0

16. Slovakia

  • Cost-of-living index: 44.46

  • Purchasing power index: 56.94

  • Grocery cost index: 37.51

  • Healthcare quality index: 60.02

  • Safety index: 70.78

  • Peacefulness index rank: 23

  • Average annual temperature: 49.5

Related: The Best Places To Retire in America Are All College Towns

15. Estonia

  • Cost-of-living index: 50.93

  • Purchasing power index: 71.30

  • Grocery cost index: 36.57

  • Healthcare quality index: 72.67

  • Safety index: 76.86

  • Peacefulness index rank: 37

  • Average annual temperature: 41.7

14. Chile

  • Cost-of-living index: 43.62

  • Purchasing power index: 42.50

  • Grocery cost index: 36.45

  • Healthcare quality index: 65.44

  • Safety index: 54.77

  • Peacefulness index rank: 27

  • Average annual temperature: 58.0

13. Austria

  • Cost-of-living index: 70.38

  • Purchasing power index: 82.38

  • Grocery cost index: 61.73

  • Healthcare quality index: 78.73

  • Safety index: 76.27

  • Peacefulness index rank: 4

  • Average annual temperature: 49.8

12. Poland

  • Cost-of-living index: 40.04

  • Purchasing power index: 59.61

  • Grocery cost index: 30.55

  • Healthcare quality index: 61.01

  • Safety index: 71.50

  • Peacefulness index rank: 29

  • Average annual temperature: 46.7

11. Croatia

  • Cost-of-living index: 49.70

  • Purchasing power index: 50.42

  • Grocery cost index: 39.90

  • Healthcare quality index: 62.68

  • Safety index: 75.29

  • Peacefulness index rank: 28

  • Average annual temperature: 56.2

10. Sri Lanka

  • Cost-of-living index: 31.61

  • Purchasing power index: 24.45

  • Grocery cost index: 35.09

  • Healthcare quality index: 72.53

  • Safety index: 59.78

  • Peacefulness index rank: 72

  • Average annual temperature: 82.0

9. Spain

  • Cost-of-living index: 53.77

  • Purchasing power index: 72.03

  • Grocery cost index: 42.38

  • Healthcare quality index: 78.88

  • Safety index: 68.04

  • Peacefulness index rank: 32

  • Average annual temperature: 63.3

See: These Are the 30 Best Small Towns To Retire in America

8. Indonesia

  • Cost-of-living index: 37.27

  • Purchasing power index: 25.05

  • Grocery cost index: 37.36

  • Healthcare quality index: 60.48

  • Safety index: 54.16

  • Peacefulness index rank: 41

  • Average annual temperature: 80.0

7. Bulgaria

  • Cost-of-living index: 36.70

  • Purchasing power index: 49.37

  • Grocery cost index: 30.09

  • Healthcare quality index: 55.40

  • Safety index: 61.50

  • Peacefulness index rank: 26

  • Average annual temperature: 53.3

6. Romania

  • Cost-of-living index: 35.31

  • Purchasing power index: 48.86

  • Grocery cost index: 29.03

  • Healthcare quality index: 55.06

  • Safety index: 72.36

  • Peacefulness index rank: 25

  • Average annual temperature: 48.6

5. Slovenia

  • Cost-of-living index: 53.43

  • Purchasing power index: 66.31

  • Grocery cost index: 43.76

  • Healthcare quality index: 64.58

  • Safety index: 78.93

  • Peacefulness index rank: 8

  • Average annual temperature: 48.5

4. Taiwan

  • Cost-of-living index: 61.37

  • Purchasing power index: 65.67

  • Grocery cost index: 71.51

  • Healthcare quality index: 86.71

  • Safety index: 84.35

  • Peacefulness index rank: 36

  • Average annual temperature: 73.0

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3. Czech Republic

  • Cost-of-living index: 46.15

  • Purchasing power index: 62.82

  • Grocery cost index: 38.13

  • Healthcare quality index: 74.62

  • Safety index: 74.48

  • Peacefulness index rank: 10

  • Average annual temperature: 47.3

2. Portugal

  • Cost-of-living index: 49.52

  • Purchasing power index: 49.43

  • Grocery cost index: 38.14

  • Healthcare quality index: 71.88

  • Safety index: 70.37

  • Peacefulness index rank: 3

  • Average annual temperature: 60.4

1. Malaysia

  • Cost-of-living index: 39.12

  • Purchasing power index: 64.49

  • Grocery cost index: 37.58

  • Healthcare quality index: 68.10

  • Safety index: 41.16

  • Peacefulness index rank: 16

  • Average annual temperature: 81.0

More From GOBankingRates

Methodology: For this study, GOBankingRates selected measures of affordability, as well as quality of life and safety. GOBankingRates began by analyzing 131 countries’ (1) overall cost-of-living index score for each country, (2) local purchasing power, which measures the local buying power of typical incomes, (3) groceries cost-of-living index score, (4) healthcare quality index score and (5) crime index score. Then, by analyzing 422 international cities for which complete data was available, GOBankingRates found each country’s (6) average monthly rent. To calculate this figure, GOBankingRates first created monthly rent estimates for all cities by averaging the mean costs of (a) a one-bedroom residence in the city center, (b) one-bedroom residence outside the city center, (c) three-bedroom residence in the city center and (d) three-bedroom residence outside the city center. Estimates for each country were then created by averaging the rent figures for all cities within its borders. All data used for these five factors was sourced from Numbeo. Finally, GoBankingRates calculated the (7) average annual temperature in each country by averaging the mean annual temperatures for all major cities within its borders, sourced from Weatherbase, and found each country’s (8) peacefulness index rank from the Institute for Economics & Peace. Each factor was then scored, with overall cost-of-living index and average rent being weighted double, and global peacefulness score being weighted triple. Countries were ranked on their cumulative score. Only the countries with data available for all factors were considered in the final ranking and all countries with a peacefulness score below the “medium” range were excluded. No. 1 is the cheapest country to retire to. All data was collected on and up to date as of June 5-8, 2020.

This article originally appeared on GOBankingRates.com: The 50 Cheapest Countries To Retire To