Many retirees dream of moving abroad and spending their golden years in an exotic locale where their retirement savings and Social Security checks will stretch much further. With the rising cost of living in the United States and most other Western countries, an increasing number of retirees are looking overseas for more affordable options. But which countries offer the best combination of low cost of living, desirable amenities, and use of the English language? Here we examine some of the cheapest English speaking countries for retirement.
What Makes a Good Retirement Destination?
When considering the best places to retire abroad, you’ll want to look at a variety of factors including:
– Cost of living – What is the overall cost of basic necessities like housing, food, utilities, and healthcare? How far will your retirement funds go on a monthly basis?
– Healthcare – What type of healthcare system and services are available? What kind of insurance options are there for retirees?
– Safety – How does the country rank in terms of crime rates, political stability, and risk of natural disasters?
– Infrastructure/amenities – Is reliable infrastructure like modern plumbing and electricity in place? Are amenities like public transportation, grocery stores, restaurants, and entertainment readily available?
– Visas – What are the requirements for long-term residency or permanent residence? Is a retirement visa program in place to make it easier for foreign retirees?
– English spoken – Is English widely spoken or will you need to become proficient in the local language?
The Top 5 Cheapest English Speaking Countries for Retirement
After comparing dozens of countries across factors like those above, here are our top 5 cheapest options for an English-speaking retirement abroad:
1. Mexico
With its low cost of living and proximity to the United States, Mexico is likely the most popular overseas retirement destination for Americans. Many expat retirees are drawn to the coastal communities along the Baja Peninsula and Riviera Maya where postcard-perfect beaches meet modern amenities.
Some key factors:
– Cost of living – Mexico has one of the lowest costs of living in the Americas. A comfortable, expatriate lifestyle costs 25-50% less than in the U.S. Housing is significantly cheaper, especially away from the resort areas.
– Healthcare – Good healthcare is available in major cities and costs a fraction of what it does in the U.S. Private insurance costs less than $150/month for a couple over age 60.
– Safety – Crime rates can be high in certain areas known for drug cartel activity. Popular expat spots tend to be safer.
– Infrastructure – Modern infrastructure and amenities are available in cities and major retirement communities. Fast internet is widespread.
– Visas – U.S. citizens can stay up to 6 months on a tourist visa. Long-term residency is an option through visas like Temporal and Permanent Resident.
– English spoken – English is widely spoken in tourist areas and major cities. Learning some Spanish is advised to integrate into the community.
2. Panama
Panama may be best known for its famous shipping canal, but in recent years it has become a haven for foreign retirees thanks to its tropical climate, low cost of living, and attractive retirement visa options. The laidback beach community of Boquete in the Chiriqui Highlands is especially popular.
– Cost of living – A comfortable retirement in Panama costs about 30-50% less than in the U.S. Housing costs are particularly low, with affordable apartments and homes available outside the capital.
– Healthcare – Good healthcare and hospitals are available, especially in Panama City. Private insurance costs under $150/month for seniors.
– Safety – Panama is safer than many Central American nations. However crime has risen in recent years, especially in certain parts of Panama City.
– Infrastructure – Panama has high quality modern amenities in cities. Internet access can be limited in rural areas.
– Visas – The Pensionado and Friendly Nations visas make Panama one of the easiest places for retirees to establish residence.
– English spoken – English is widely spoken in urban areas and tourist spots, but Spanish is important outside cities.
3. Costa Rica
Known for its “pura vida” (pure life) mentality and stunning natural landscape, Costa Rica has become popular not only with tourists but also foreign retirees. The Central Valley appeals to many retirees with its mild climate and close proximity to amenities.
– Cost of living – Expect 30-50% savings compared to the U.S. Imported goods can be expensive but housing, healthcare and other costs are low.
– Healthcare – Excellent healthcare is available and inexpensive. Universal healthcare helps keep costs down for residents.
– Safety – Costa Rica is one of the safest countries in Central America with a stable government and few conflicts. Violent crime is rare in tourist areas.
– Infrastructure – Modern infrastructure is available in cities and suburbs. Rural areas can have limited internet and amenities.
– Visas – Retirees have options like the Pensionado Visa. Residency is straightforward after showing monthly pension income.
– English spoken – English speakers are common in major tourist spots. Speaking some Spanish is recommended.
4. Malaysia
Malaysia is becoming an up-and-coming retirement spot thanks to its low cost of living and high quality healthcare. The island of Penang is a top destination with its vibrant culture, modern high-rises, and pristine beaches.
– Cost of living – Overall costs are around 50-60% lower than the U.S., even in luxury communities. Eating out and entertainment are very affordable.
– Healthcare – Malaysia has world class hospitals and clinics available for 1/3 to 1/5 the price of U.S. healthcare.
– Safety – Malaysia has low violent crime rates, although petty crime does occur in cities.
– Infrastructure – Malaysia is one of the most developed countries in SE Asia. High speed internet, modern amenities, and reliable infrastructure.
– Visas – Expats can qualify for a 10-year retirement visa by showing proof of savings and offshore income.
– English spoken – English is widely spoken as an official language, especially in cities. But learning Malay can help greatly.
5. Spain
From its warm Mediterranean beaches to fascinating history and culture, Spain has become a dream retirement locale for many. Affordable seaside communities along the Costa Blanca and Costa del Sol are popular with retirees.
– Cost of living – Lower prices in Spain make for 30-40% savings compared to the U.S. Groceries, dining and entertainment are very affordable.
– Healthcare – Good private and public healthcare is available. Private health insurance costs under $150/month for seniors.
– Safety – Spain has low violent crime rates and is considered safer than other European nations. Petty crimes like pickpocketing can occur.
– Infrastructure – Modern amenities and conveniences are commonplace in cities and major towns. High-speed internet is widespread.
– Visas – Americans can stay up to 90 days visa-free initially and retiree/non-lucrative visas are available long-term.
– English spoken – Outside major cities and tourist zones, limited English is spoken. Learning Spanish is highly recommended.
| Country | Cost of Living | Healthcare | Safety | Infrastructure | Visas | English Spoken |
|---|---|---|---|---|---|---|
| Mexico | 25-50% less than U.S. | Good. Insurance under $150/month. | Moderate crime in some areas. | Modern in cities. | Tourist visa then residency options. | Widely spoken in tourist areas. |
| Panama | 30-50% less than U.S. | Good. Insurance under $150/month. | Relatively safe. | Modern amenities in cities. | Pensionado and Friendly Nations visas. | Commonly spoken in cities. |
| Costa Rica | 30-50% less than U.S. | Excellent. Low cost universal healthcare. | Very safe. | Modern infrastructure in cities. | Straightforward pensionado visa. | Commonly spoken in tourist areas. |
| Malaysia | 50-60% less than U.S. | World class hospitals. Low prices. | Very safe. | Modern cities and infrastructure. | Retirement visa available. | Commonly spoken in cities. |
| Spain | 30-40% less than U.S. | Good public and private options. | Very safe. | Modern amenities widespread. | Visa options for retirees. | Less common outside cities. |
How to Determine the Best Option for You
Choosing where to retire abroad is a big decision that requires weighing your personal needs and preferences. Here are some tips on finding the best country fit:
– Make a list of your retirement priorities – Do you want to minimize costs? Be near the ocean? Have access to theatre and concerts? Prioritize what matters most.
– Narrow the list by language – Unless you want to learn a new language, focus on destinations where you can get by in English.
– Research healthcare – Find places with quality, affordable healthcare and your preferred system (public, private or both).
– Join expat communities – Get advice from people living overseas in the countries you are considering.
– Check the visa requirements – Make sure you can qualify for a long-term retirement visa in your chosen destination.
– Travel to test it out – Visit your top locations to get a feel for day-to-day living and make sure it is right for you.
– Look at all areas of the country – Don’t limit yourself to the main tourist spots. Smaller towns and cities can provide a better experience and lower costs.
– Rent first, buy later – Rent for a few months before committing to buy property so you can make sure you like the area.
– Bring a friend or partner – Having someone else along for the first few months can ease the transition and provide support.
– Take your time – Don’t feel pressured to rush into a choice. Weigh all the factors carefully.
The Cheapest English Speaking Country? It Depends…
While countries like Mexico, Panama, Malaysia, and Spain come out on top for low living costs and English proficiency, the “cheapest” country for you depends entirely on your lifestyle, priorities and preferences for retirement living.
As the famous saying goes “Different strokes for different folks.” What appeals most to a single retired teacher may not be the same as for a retired couple looking to sail around the world. Determine the factors most important to your ideal retirement and carefully compare destinations across those criteria. Don’t just look at costs, but also amenities, climate, healthcare, safety, visa requirements and more.
Take your time doing thorough research and get boots on the ground. Once you find the perfect spot that checks all of your boxes, you can look forward to an active, rewarding retirement abroad where your dollars stretch much further!
