Planning for an adventurous retirement? Or maybe your current 401(k) savings rate requires you to think hard about how to live well on little in the future? These 15 countries might be worth considering for retirement.
Maybe they aren't the first to come to mind when you think of overseas retirement, but they do offer lower cost of living and affordable housing. And health care quality and availability has also been factored in.
The slides that follow show the 15 cheapest countries GoBankingRates identified for retirement.
Curious about how the ratings were figured? Read the article below and find out. (Photos: Shutterstock)
Cost-of-living index: 36.45 │ Average rent: $354.67
Groceries index: 29.88 │ Local purchasing power index: 32.26 (Above: Cluj, Romania)
Cost-of-living index: 41.98 │ Average rent: $480.80
Groceries index: 37.87 │ Local purchasing power index: 29.43 (Above: Cuenca, Ecuador)
Cost-of-living index: 49.18 │ Average rent: $431.80
Groceries index: 40.33 │ Local purchasing power index: 40.36 (Above: Split, Croatia)
Cost-of-living index: 35.21 │ Average rent: $283.71
Groceries index: 30.45 │ Local purchasing power index: 23.65 (Above: Istanbul, Turkey)
Cost-of-living index: 37.17 │ Average rent: $340.61
Groceries index: 31.15 │ Local purchasing power index: 29.86 (Above: Nessebar, Bulgaria)
Cost-of-living index: 35.39 │ Average rent: $312.45
Groceries index: 26.30 │ Local purchasing power index: 27.84 (Above: View from Tara Mountain in Wester Serbia)
Cost-of-living index: 37.70 │ Average rent: $500.73
Groceries index: 37.87 │ Local purchasing power index: 18.89 (Above: Ho Chi Minh City, Vietnam)
Cost-of-living index: 32.71 │ Average rent: $414.16
Groceries index: 30.30 │ Local purchasing power index: 30.23 (Above: Mexico City)
Cost-of-living index: 35.09 │ Average rent: $437.35
Groceries index: 32.61 │ Local purchasing power index: 19.67 (Above: Manila, Philippines)
Cost-of-living index: 36.24 │ Average rent: $397.46
Groceries index: 38.14 │ Local purchasing power index: 18.02 (Above: City of Solo in Central Java, Indonesia)
Cost-of-living index: 30.15 │ Average rent: $331.19
Groceries index: 24.33 │ Local purchasing power index: 22.46 (Above: Cartagena, Colombia)
Cost-of-living index: 20.40 │ Average rent: $181.83
Groceries index: 18.25 │ Local purchasing power index: 15.42 (Above: Islamabad, Pakistan and Margalla Hills)
Cost-of-living index: 39.38 │ Average rent: $396.59
Groceries index: 39.70 │ Local purchasing power index: 22.75 (Above: Kuala Lumpur, Malaysia)
Cost-of-living index: 24.17 │ Average rent: $225.30
Groceries index: 24.20 │ Local purchasing power index: 17.15 (Above: Mumbai, India)
1. Sri Lanka.
Cost-of-living index: 30.24 │ Average rent: $300.95
Groceries index: 33.57 │ Local purchasing power index: 17.36 (Above: Kandy, Sri Lanka)
Some think of retirement as a last chance to do something nobody would expect, something different. But if there’s little retirement money saved, is it even possible?
Well, be of good cheer, because GoBankingRates has looked into the matter to find places to spend retirement abroad.
Using Numbeo, an online pricing database, to identify 50 countries that are the cheapest in the world to live during retirement, GoBankingRates ranked those countries by four key affordability metrics—and then measured each metric against what you would find in New York City.
Here’s how they did it: Their cost-of-living index includes the costs of local goods and services, such as restaurants, groceries, transportation and utilities, while their average rent provides the typical rental price in the country. (Average monthly rent is based on calculating the average cost of a one-bedroom residence in the city center; a one-bedroom residence outside the city center; a three-bedroom residence in the city center; and a three-bedroom residence outside the city center).
Then there’s the groceries index, which includes typical grocery prices in the country, while the 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.
There are also the quality-of-life metrics, which include the health care index (for estimates of the overall quality of the health care system, health care professionals, equipment, staff, doctors and costs); the safety index (which 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); and the average temperature (the average annual temperature of the country based on the average annual temperature for major cities in the country).
Feeling adventurous? Check out the slides above for the 15 cheapest countries GoBankingRates identified in its evaluations.
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