The countries & US states that offer the cheapest retirement lifestyle
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Your retirement plans might look different from what they did three years ago.
The cost of living has ballooned. Interest has skyrocketed. Jobs have been lost or reinvented, and redundancies have pushed many into lower-paid positions.
When COVID-19 hit, some workers took early retirement. With companies shutting down and income declining during the lockdown, the average retirement age — which has grown by three years over the past three decades — briefly decreased, although it is now back on the rise. Some are now returning to their positions to cope with the economic downturn.
How will you make ends meet when you someday quit for good? According to the latest retirement Confidence Survey, 70 percent of employees envision persisting in working for money during retirement, with 68 percent expecting this to be “at least a minor source of income in retirement.” One-third of those less confident about retirement blame inflation and living costs for their doubts.
A sudden change in circumstances like the pandemic can be inevitable. But wandering unprepared into retirement can be avoided. Just put, the better you plan your retirement years, the better standard of living you can enjoy. The savvy retired balance their savings and projected revenue against their lifestyle and local living expenses. For some, the fastest way to balance those figures is to relocate to an area with lower costs. Relocation can be a magic bullet if you itch to travel or start afresh when you retire.
It’s been 2 years since NetCredit revealed its guide to the cost of retiring worldwide, and a lot has changed since then. So, they have updated and expanded their study by 2023, using all the latest figures and adding the cost of retirement in every U.S. state to help you make this big decision.
Table of Contents
Key Findings
- Singapore is the most pricey nation to retire, costing $1,118,375.43 over a 15-year period.
- Pakistan is the cheapest location to retire, at $158,410.13.
- The average cost of retirement in the United States is $702,330.47.
- The most expensive U.S. state to retire is Hawaii ($893,400).
- The cheapest U.S. state is Mississippi ($469,517)
The Cost for an American to Comfortably Retire in Every Country
According to an Aegon survey, 13 percent of American workers and retirees would consider living abroad for retirement. The idea can be exciting for many U.S. citizens, as it represents the first opportunity to live their lives in another country.
Yet retirement doesn’t come cheap. The cost-of-living analysis shows that the average American would need $1.18 million to live in their later years in Singapore — more than any other country. Meanwhile, the life of a pensioner in India ($186k) or Pakistan ($158k) is much more affordable.

North America
According to the U.S. Social Security Administration, 47.9 million Americans collect social security checks for senior citizens. But where do they live? People in their sixties are spoiled for choice for retirement across North America, with visas a popular choice available to those moving north to Canada or south to Mexico.
The United States is the most expensive country in the region, costing the average citizen $702k over 15 years. Meanwhile, life in Mexico is much more affordable, with seniors paying $307k to retire comfortably.

The United States
U.S. Census Bureau data show that over 400,000 Americans moved after retirement, with plenty of attractive options for a senior lifestyle across the country.
Despite its reputation, senior citizens in Hawaii pay more for their retirement than any other state, with a comfortable lifestyle costing $893k — more than Florida ($731k) and Rhode Island ($720k). Retirees looking for the Gulf of Mexico should consider Mississippi, the cheapest state at just $470k.

South America
According to the U.S. State Department, over 200,000 American ex-pats live in South America. From the bustling beaches of Rio de Janeiro to the rugged Patagonia region, the continent’s diverse culture and geography make it a great place to travel and one day retire.
Research shows that it will cost American seniors $458k to live in their later years in Uruguay, the most expensive country in South America. Further north, Colombia is the continent’s cheapest, with a comfortable retirement coming in at $200k.

Europe
Europe’s diversity, history, and culture make it an attractive place for many Americans to consider spending their later years.
Retirement in Switzerland is the most expensive, costing the average American $831k. Meanwhile, North Macedonia is the continent’s cheapest. In this one of Europe’s most historic countries, a seniors’ lifestyle there will cost $229k.

The Middle East and Central Asia
The Middle East and Central Asian regions offer various options for Americans looking to retire, from the Caucasus Mountains range to the opulent megacities in the Arabian Peninsula.
Israel’s deep religious connection to the U.S. and historic rules on dual citizenship might make retirement tempting for some. Still, research shows it’s the most expensive nation in the region to retire, costing the average American $656k.

The Rest of Asia and Oceania
At $1.18 million, the seniors’ lifestyle in Singapore will price many people out. However, retirees will find the Indian subcontinent much more affordable. Pakistan offers the cheapest life anywhere in the world, costing just $158k to retire, along with India ($186k) and Sri Lanka ($224k).

Africa
Africa’s rich cultural heritage and natural wonders make it a compelling destination for travelers, but could you comfortably retire there?
According to the analysis of the cost of living for retired Americans, Nigeria offers the most expensive lifestyle, costing $376k. For many, North Africa will be more affordable, as Algeria ($210k), Tunisia ($216k), and Egypt ($217k) offer cheaper retirements for the average American.

Methodology
To calculate the expense of a comfortable retirement for an American in every nation and U.S. state, Netcredit pulled living costs from Numbeo and used the following calculations:
- The retirement estimations were based on the average American retirement age of 61 years, according to Gallup, and the average American life expectancy of 76.15 years, according to the CDC’s National Center for Health Statistics.
- There are 181.8 months between the average retirement age and average life expectancy. So the monthly living expenses in a country or state were multiplied by 181.8 to determine the retirement cost.
This final figure was then increased by 20% to allow for a more comfortable retirement. Note that none of the other values, like annual or monthly costs, include the 20% increase.
For this task, the values for each U.S. state are an average of data for living costs in its notable cities. The source of the U.S. states’ most populous cities was Wikipedia.
For the nations, the values are an average of all cities for that country in the Numbeo dataset. The team only chose countries with over 1,000 entries on Numbeo, excluding some countries where most of their entries came from the capital city, overestimating prices.
The monthly cost-of-living figures they calculated using the following assumptions:
- Members of your household = one
- Eating lunch or dinner in restaurants = 15%, Choosing inexpensive restaurants = 70%
- Drinking coffee outside your home = moderate
- Going out = once per week
- Smoking = no, Alcoholic beverages = moderate
- At home, we are eating = Western
- Driving car = moderate, Taking taxi = no
- Public transport = two round trips weekly
- Sports memberships = all household members
- Vacation and travel = two per year
- Buying clothes and shoes = moderate
- Rent = apartment (one bedroom) in the city center
- No children