Many Americans operate under the misconception that you have to be rich to retire overseas. The truth is that you have to be rich to retire in the United States.
The United States has the 10th highest cost of living in the world. It varies from state to state, but even in lower-cost states like Mississippi, you need a healthy annual budget to be able to go beyond meeting basic needs and live comfortably.
In many places throughout the world, goods and services cost much less than they do in the United States, which allows you to reduce your monthly expenses. Currency advantages can further enhance savings if you move to a country where the U.S. dollar is strong against the local currency.
Moving to a lower-cost country does not mean you need to compromise on quality of life. The quality of medical care, infrastructure and other important considerations can be as high as, or even superior to, U.S. equivalents in certain locations.
Here are eight places where you could embrace a high standard of living while enjoying a life of adventure and discovery on a budget of as little as $1,000 per month.
— Chiang Rai, Thailand.
— Corozal, Belize.
— Cuenca, Ecuador.
— Granada, Nicaragua.
— Medellín, Colombia.
— Tagaytay, The Philippines.
— Kyrenia, Northern Cyprus.
— Chitré, Panama.
Chiang Rai, Thailand
Southeast Asia is one of the cheapest places in the world to live well on a modest budget, and Thailand is one of the best and most popular destinations in the region. A staggering 3 to 4 million foreigners live in Thailand. Many in this group are retirees who have sought this country out for its breathtaking natural beauty, excellent health care, delicious local cuisines and low cost of living.
Chiang Rai, in northern Thailand, is home to about 200,000 people. As a relatively small city, it faces fewer population pressures than larger urban areas like Chiang Mai and Bangkok. This helps keep costs down, and housing, health care and entertainment are a bargain.
Rent for a two-bedroom apartment or home costs under $500 per month. Eating out on healthy and delicious Thai dishes costs about $2 per meal. Thailand stands out for its excellent private medical care, and international standard hospitals are only minutes from Chiang Rai’s city center.
Chiang Rai sits among the foothills of one of Thailand’s highest mountain ranges. Surrounded by thick forests and spliced with streams and waterfalls, the area is ripe with opportunities for exploration and recreation. It enjoys distinct seasons and pleasant weather year-round.
Corozal, Belize
Florida is the most popular U.S. state for retirement. If you’re willing to venture a little farther south, you’ll find Belize, a tiny Caribbean-front country in Central America. It has much of the same appeal as Florida — warm, sunny weather year-round and plenty of palm-fringed beachfront — but its cost of living is much lower.
Belize is popular with North American expats for its favorable tax policies (all foreign-sourced income is exempt from taxation) and easy retiree residency program. While most of the tourist and expat attention is focused on Ambergris Caye and Belize’s other islands, it’s the mainland that offers the best low-cost living opportunities.
Corozal is a town and district in northern Belize, just 10 miles from the border with Mexico and the city of Chetumal. This proximity allows Corozal residents to combine the best of both worlds: They can live a relaxed, low-cost lifestyle in Corozal but easily access city amenities and shopping in Chetumal.
Infrastructure isn’t yet well-developed in Corozal, and modern amenities are lacking. The sleepy, back-to-basics way of life is part of the appeal for people who live here. If you live like a local and settle in a village, your rent and overall cost of living could be very low. You could rent a two-bedroom apartment or home for as little as $400, and then add another $400 per month for food and transportation.
[READ: Best Places to Retire Overseas Where English is Spoken.]
Cuenca, Ecuador
Prices in Ecuador are rock-bottom for Latin America, which explains why it’s seen successive waves of expat immigration in recent decades. Part of the reason for Ecuador’s popularity is the fact that its currency is the U.S. dollar, eliminating any currency exchange risk.
There is a long-established population of North American retirees in Ecuador who have created a large, active community with plenty of activities to help newcomers feel welcome. One of the most popular places for expats to settle is Cuenca, a city of about half a million people in southern Ecuador.
Situated at about 8,400 feet above sea level in the foothills of the Andes Mountains, Cuenca has stable, springlike temperatures year-round. This helps keep utility bills low because there’s no need for air conditioning or home heating. Monthly transportation bills stay low as well because of Cuenca’s efficient public transportation network. About $50 per month covers monthly transport expenses.
Cuenca has high-quality health care at a fraction of the price of comparable care in the United States. A UNESCO World Heritage site, this former Inca stronghold boasts one of the best-preserved historic centers in the Americas.
Granada, Nicaragua
Granada is a city of about 100,000 people in western Nicaragua. It’s a colorful city, from its red-clay tiled roofs to its powder-blue church steeples. Founded in 1524 by Spanish conquistadors, it was embellished with Old World architecture, resulting in abundant historical charm in today’s context.
Within walking distance of Granada’s center is freshwater Lake Nicaragua, and its beaches and little islands provide recreation opportunities and an escape from the midday heat. Further afield, Nicaragua has two long coastlines and two big lakes, plus volcanoes, highlands, rain forests and rivers.
The primary appeal is the low cost of living. U.S. dollars are accepted almost everywhere and go a long way. Rent for a comfortable, two-bedroom apartment is about $500 per month. Property ownership is affordable as well. You could own one of the city’s grand old Spanish colonial haciendas for as little as $75,000.
Nicaragua offers easy retiree residency options with low financial thresholds. You can qualify by showing an income of just $600 per month. The country enjoys good connections to the United States, and the flying time to Miami is about 2½ hours.
[READ: The Healthiest Places to Retire Overseas.]
Medellín, Colombia
Medellín provides the opportunity for a Euro-chic, cosmopolitan lifestyle on a small budget. Colombia‘s second-biggest city with 2.5 million people, Medellín is vibrant and energetic. Festivals, gastronomy, orchestra, theater and museums are just a few components of the sophisticated cultural scene.
This city is renowned for its efficient and low-cost public transportation system that eliminates the need for a car. This translates into major savings. Transportation is the second-biggest expense for Americans 65 and older. The average fare on the Medellín Metro is about 60 cents, so a monthly transportation budget of about $60 is plenty.
Just like Cuenca, Medellín has temperate weather year-round, helping you save on utility bills. You won’t need heating or air conditioning here. Colombia also has high-quality, low-cost health care. Its health system is ranked 22nd by the World Health Organization. (The U.S. system is ranked 37th for comparison.)
The cost of living starts out low in Medellín, but savings are supercharged by the currency advantage currently in effect. The U.S. dollar is at historic highs against the Colombian peso, meaning every dollar goes further than it normally would.
Tagaytay, The Philippines
The Philippines is another famously low-cost Southeast Asian country. One of the top choices for retirement in the Philippines is Tagaytay, a small mountain resort town about an hour from Manila.
Because Manila is so close, high-quality health care and diverse shopping options can be easily accessed. Despite its proximity to the capital, there’s nothing urban about Tagaytay.
It sits atop a mountain ridge at 2,100 feet above sea level, featuring stunning views of Taal Lake and Volcano, and a mild climate thanks to its elevation. Local diversions include dining al fresco, golf, hiking and gardening, making this an ideal choice for retirees who enjoy the outdoors.
The Philippines is a top choice for retirement in Asia because it offers an attractive retirement visa. One of the ways you can qualify for it is by depositing $20,000 into a local bank account. This allows you to stay in the Philippines indefinitely and import $7,000 worth of household effects tax-free, among other benefits.
Kyrenia, Northern Cyprus
Northern Cyprus is found at the far eastern edge of the Mediterranean. It offers all of the appeal of the Mediterranean lifestyles of the French Riviera or the coasts of Spain for a fraction of the cost.
Kyrenia is the territory’s fifth-largest city and an important center of tourism, offering casinos, spas and beach resorts. It’s known for its old harbor and seafront castle, which cast a historic air and make it one of the most charming destinations in the region.
Kyrenia is sandwiched between the Kyrenia Mountains and the warm waters of the Mediterranean. With long stretches of sandy beach, Kyrenia lends itself well to an active lifestyle full of water sports as well as land-based diversions like hiking and golf.
A budget of $1,000 per month allows for a luxury lifestyle in Kyrenia. Rent for a two-bedroom apartment is about $650. A hearty meal, including a beverage, costs about $10. The area is a burgeoning medical tourism destination, and a doctor’s appointment at a private clinic can cost as little as $15.
On top of already low costs, Northern Cyprus uses the Turkish lira as its currency, which provides a major currency advantage to U.S. dollar holders.
[SEE: The 10 Best Places to Retire in Europe.]
Chitré, Panama
Chitré is a town located on the Pacific Coast’s Azuero Peninsula, about a four-hour drive west of Panama City. It stands out for being home to more conveniences and amenities than the average Panamanian small town. It’s a regional hub of commerce and transport, so high-quality hospitals, diverse shopping options, hardware stores, restaurants and more are at retirees’ fingertips in Chitré.
Because it’s little-known outside of Panama, life in Chitré comes at a low cost. Living a minimalist lifestyle, which includes using public transportation instead of driving a car, a couple could get by on $600 per month. For a more comfortable lifestyle, a monthly budget of $1,000 is plenty.
Chitré is known for its warm, inviting locals and vibrant regional culture. It’s a stronghold of local folklore, which you can experience at the multiple festivals hosted here throughout the year. The town center is clean and well cared for, including the attractive Spanish-colonial architecture that surrounds it.
Panama offers a favorable tax environment (it only taxes locally sourced income) and the gold standard of retirement visas, which you can qualify for by showing pension income of $1,000 per month.
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The Cheapest Places to Retire Abroad on $1,000 Per Month originally appeared on usnews.com
Update 03/30/23: This story was published at an earlier date and has been updated with new information.
