On the quest for a place to retire, we often limit ourselves to nearby options. However, the United States is not the only setting for a fulfilling retirement. Imagine the allure of retiring abroad, where life is economical, and you can bask in new surroundings and cultures.
Retirement Deliberations
GOBankingRates utilized Numbeo, an online pricing database, to pinpoint the 15 most affordable countries (out of 131) worldwide for retirement living. These countries were evaluated based on four crucial affordability metrics, each measured against New York City standards:
- Cost-of-living index: Encompassing local goods and services costs, such as restaurants, groceries, transportation, and utilities.
- Average rent: The standard rental price in the country.
- Groceries index: Representing typical grocery prices in the country.
- Local purchasing power index: Reflecting the relative purchasing power of a typical salary in that country.
In addition, the study factored in the following quality-of-life metrics for each country:
- Healthcare index: Estimations of the overall quality of the healthcare system, healthcare professionals, equipment, staff, doctors, and costs.
- Safety index: A measure of the country’s safety on a scale of 0-100.
- Peacefulness index rank: Assessing the level of peace in the country according to the Institute for Economics & Peace, with global peacefulness weighted triple.
Based on this comprehensive evaluation, the study identified the 15 most affordable places to retire abroad.
These countries, boasting enviable healthcare, public safety, and other metrics, offer excellent value even when compared with some of the most affordable retirement destinations in the United States.
15. Germany
- Cost-of-living index: 62.9
- Purchasing power index: 107.6
- Grocery cost index: 50.9
- Healthcare quality index: 71.9
- Safety index: 62.4
- Average rent: $785
- Peacefulness index rank: 17
Contrary to common beliefs, some of the best retirement spots are found outside the United States. Take Germany, for instance, with its favorable cost of living and high purchasing power index. The country also boasts a robust healthcare and fairly safe environment for retirees.
14. Denmark
- Cost-of-living index: 78.6
- Purchasing power index: 105
- Grocery cost index: 62.4
- Healthcare quality index: 79.2
- Safety index: 73.4
- Average rent: $933
- Peacefulness index rank: 3
Denmark, with its comfortable living cost and strong purchasing power index, is an attractive retirement destination. The country also excels in healthcare quality and boasts a high degree of safety, making it a compelling option for retirees.
13. Estonia
- Cost-of-living index: 54.8
- Purchasing power index: 61.4
- Grocery cost index: 42.4
- Healthcare quality index: 74.1
- Safety index: 74.9
- Average rent: $518
- Peacefulness index rank: 30
12. Spain
- Cost-of-living index: 50.6
- Purchasing power index: 72.8
- Grocery cost index: 42.5
- Healthcare quality index: 80.3
- Safety index: 65.3
- Average rent: $757
- Peacefulness index rank: 30
Top 11 Countries for Affordable Living and Quality of Life
11. Finland
- Cost-of-living index: 67.5
- Purchasing power index: 98.8
- Grocery cost index: 58.2
- Healthcare quality index: 77.1
- Safety index: 73.2
- Average rent: $772
- Peacefulness index rank: 13
10. Hungary
- Cost-of-living index: 39.2
- Purchasing power index: 53.1
- Grocery cost index: 34.8
- Healthcare quality index: 54.4
- Safety index: 66.1
- Average rent: $368
- Peacefulness index rank: 19
9. Poland
- Cost-of-living index: 38.6
- Purchasing power index: 64
- Grocery cost index: 30.8
- Healthcare quality index: 57.6
- Safety index: 70.8
- Average rent: $536
- Peacefulness index rank: 24
8. Romania
- Cost-of-living index: 37.4
- Purchasing power index: 52.5
- Grocery cost index: 32
- Healthcare quality index: 56.5
- Safety index: 68
- Average rent: $311
- Peacefulness index rank: 25
4. Japan Next: The 5 Things That Disappear When You Retire3. Portugal
The Cheapest Countries to Retire Abroad
Slovenia: A Hidden Gem
Ranked at number 2, Slovenia offers a cost-of-living index of 50.8, making it an attractive destination for retirees. The purchasing power index of 61.7 and healthcare quality index of 65.3 are commendable. Safety is well above average at 75.8, complemented by an affordable average rent of $496. With a peacefulness index rank of 5, Slovenia is a hidden gem that promises retirees a comfortable and secure lifestyle at a budget-friendly cost.
Czech Republic: Where Affordability Meets Quality
Czech Republic, topping the list at number 1, reflects a cost-of-living index of 48.9, signaling affordability for retirees. A substantial purchasing power index of 71.8 ensures that you get more bang for your buck. With a healthcare quality index of 75.5 and a safety index of 73.4, it offers a high-quality healthcare system and a secure environment. The average rent of $640 is easy on the pocket, and a peacefulness index rank of 9 indicates a tranquil retirement destination. The Czech Republic perfectly balances affordability and quality, making it an enticing option for retirees.
Jordan Rosenfeld contributed to the reporting for this article.
Methodology: The study selected measures of affordability, quality of life, and safety to determine the cheapest countries to retire to. It analyzed various factors such as cost of living, purchasing power, grocery cost, healthcare quality, crime index, average monthly rent, and peacefulness index. Data was sourced from Numbeo and the Institute for Economics & Peace. Rankings were based on cumulative scores, with considerations for affordability, quality, and safety. Only countries with complete data for all factors were considered, and those with a peacefulness score below the “medium” range were excluded. The data was collected up to January 5, 2023.
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This article originally appeared on GOBankingRates.com: 15 Most Affordable Places To Retire Abroad
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