1. Hanoi, Vietnam: Hanoi, Vietnam’s capital city, has one of the lowest costs of living of any major city in Southeast Asia. A couple can live a comfortable lifestyle in Hanoi on a budget of $905 per month or less, or $10,860 a year, according to International Living.
2. Lisbon, Portugal: Portugal’s capital, Lisbon — home to half a million people — is a place where retirees can “enjoy a European lifestyle at Latin American prices,” according to the report. A couple can live well here for $3,065 a month, or $36,780 a year. The report says Lisbon is one of the most affordable capitals in Western Europe.
3. Panama City, Panama: In Panama City, a couple can rent a two-bedroom apartment in a central area for $1,765 a month, or $21,180 a year. For expats from the U.S., Panama is also convenient because the currency is the U.S. dollar.
4. Phnom Penh, Cambodia: Phnom Penh has lots to offer expats — a stunningly low cost of living, bustling markets and a thriving food scene — set to a backdrop of colonial French architecture and temples. According to International Living, a retired couple can enjoy a good life here on $1,837 a month, or $22,044 a year.
5. Quito, Ecuador: Quito is one of the highest capital cities in the world, located in the Andes mountains at 9,350 feet. According to the report, Quito has everything expats would expect to find in any big city — including museums, architecture, art and theater — at a fraction of what it costs in North America. A monthly budget for a couple in Quito would run from $1,650 to $1,825, or a yearly total of $19,800 to $21,900.

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(Related: 10 Best Foreign Countries for Retirement: 2018)

An increasing number of Americans are retiring overseas to capital cities that offer a culture-rich lifestyle, excellent infrastructure and top-class dining and entertainment — and an affordable price tag, according to Internationalliving.com.

A new report from the editors at International Living reveals five capital cities overseas where a couple can retire on less than $37,000 a year.

“An urban retirement holds increasing appeal for baby boomers keen on the idea of staying active and aging in place. In big cities like Washington, D.C., retirees can easily access theater, dance, museums, restaurants, doctors and grocery stores without getting in a car,” Jennifer Stevens, executive editor of International Living, said in a statement. “But all that comes with a high price tag — especially for living and housing costs. The median household income in D.C. is $72,935, but experts say you need more like $90,811 to live there comfortably as a working person.”

By International Living’s calculations that equates to $63,568 a year, or $5,297 per month, for a couple to retire comfortably in the capital of the United States.

“But retirees can gain all the same benefits of a cosmopolitan, urban lifestyle in the best-value capital cities overseas — for a small fraction of that price tag,” Stevens said in a statement.

The International Living report lists five capital cities in Europe, Latin America and Southeast Asia where a retired couple can live well on less than $37,000 a year. Check out the gallery to see which five cities are in the report.

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