Retirement means switching from a dependable, regular salary to a lifestyle in which your investments and pensions provide for your needs. More and more people are exchanging gloomy, wet weather and a high cost of living for a warmer–and more economical–life.
So where can you move to that will help stretch your finances further? Here we explore four of the best places on Earth to add to your list.
The cheapest place in the world to retire, we think, is Cambodia.
Cambodia is an absurdly cheap place to live and visit, and has more than its fair share of good weather, tourist sites and temples.
It also allows a business visa which can be applied for easily, and this allows you to live without many restrictions and pursue your interests.
As one of the poorest countries in Asia, make sure your expectations are in line with the reality. Yes, the beaches are wonderful and the economy is growing, but with neighbouring Bangkok as the medical hub, it’s still a developing country, and services are not as well-developed as some of the more established destinations in Asia.
Expect to pay US$300-400 a month for a luxurious condo-style apartment or house. Not a bad deal, all things considered.
Thailand is a hotspot for foreigners, and the country is full of them. Thailand hardly needs any introduction as an amazing place to be, with its cuisine, beaches, cities, culture.
There are a couple of catches though with Thailand.
Firstly, the prices are low but it can be very easy to spend a lot and burn through more cash than you would expect.
Secondly, the visa situation is a perpetual issue. Unless you apply for a Retirement Visa (which can be done with a fixed deposit of just over USD25,000 per year, or around US$2050 a month), you will find yourself entering and exiting the country every so often and renewing a tourist visa stamp on each visit. This makes a long-term stay tenuous and, eventually, tedious.
Thirdly, property ownership there is very restricted and theoretically nearly impossible for foreigners. Since you’ll have to proceed with property purchase in Thailand with great care, this will make renting a place a foregone conclusion.
On the plus side though, medical care available in Thailand is outstanding and it’s a hub for medicine in Asia.
What’s not to like about Latin America? The people, the landscapes, the party atmosphere and the general spirit of the place.
Naturally, there is a reputation for danger in some areas, with drug cartels in operation, but you’d be very wrong to assume that the whole continent is like that. In fact, Mexico is a retirement hotspot for many, particular Americans, who find that even modest Social Security income alone is sufficient for a good life. If you stay away from the tourist areas, and live in the interior or in Mexico City, you’ll find an inexpensive cost of living and that your retirement income goes far. One estimate of monthly expenditure runs to US$2175, covering housing, utilities, healthcare and general living.
Colombia is another treasure, and one whose reputation for danger is largely undeserved. While there are areas where travel is unsafe within the country, it’s a huge place with the Andes mountains running through the centre and with major cities with energy, sophistication and a lot of Latin fun to be had–at a reasonable price. Bogota, Medellin, Cartagena are wonderful places, unaffected by the major political problems.
How far could your money go there? Very: the Colombian peso is very weak, so foreign currency (and USD) will be king. Consider paying less than US$500 a month for a nice place to live in the capital, and with costs in line with Mexico, it’s a very good deal for retirees.
Invest for retirement
Wherever you end up for retirement, whether it’s Milton Keynes or Mauritius, you’ll want to make sure your investment portfolio matches the requirements of the life you have in mind. Speak to us about the buy-to-let UK property investments which we offer and see how we can set you on the right path, or help enlarge your existing portfolio.