People could retire with £160,000 in one of cheapest places to retire abroad

The average pension pot for those over 55s in the UK is £107,000, which just about covers the minimum retirement standards set out by the Retirement Living Standard.

However, with some extra savings, Britons could retire abroad and live comfortably with a smaller budget.

Research from Money Wise ranked the top five countries where pensioners could retire with around $200,000 (around £160,000) total in their pension pots.

Barry Choi, a budget travel expert, explained that with $200,000 (£160,000) saved and some retirement benefit payments coming in, people can retire comfortably and enjoy their senior years in the sun.

Nicaragua

Nicaragua is in Central America and has beaches along its eastern shores. Given its geography, the weather in Nicaragua is lovely all year.

A couple can live comfortably in Nicaragua for $1,200 (around £950) per month. Spending $2,000 (around £1,600) a month equates to a life of luxury.

Nicaragua also has high-quality, low-cost healthcare, especially in the Managua area. Some hospitals offer a tiered health program or a membership program whose pricing depends on age and health conditions.

The main language is Spanish but English is widely spoken, especially along the Caribbean coast.

Thailand

International Living (ILM) explains people can expect to live comfortably on $1,500 to $2,000 (around £1,600) per month in Phuket.

Thailand is part of the top 50 best healthcare systems, according to the World Health Organisation.

A full Thai dinner with beer for two costs less than $10 (around £8) in Chiang Mai, and a Western dinner for two costs about $15 (around £11).

Costa Rica

According to MoneyWise, towns like Atenas and Tamarindo are renowned for their lovely climate, affordable food and home prices, and friendly environment where locals and expats can mingle.

The locals speak Spanish, however, there are many expats speaking English, too.‌

Given the influx of tourists and expats, Costa Rican rental prices have risen in the past few years. In Atenas, rental prices start from $650 (£520) depending on how much space and luxury someone wants.

Malaysia

According to ILM, Malaysia is South Asia’s most popular destination for retirees. English is widely spoken by expats and locals.

In Kuala Lumpur and the island of Penang, there is a low cost of living and affordable entertainment which makes it popular with internationals.

People can get a two-person three-course dinner for around $15 (around £12).

Renting is also affordable: a one-bedroom condo in the city centre costs about $550 (around £500) per month. Life in the cultural melting pot of Penang is even cheaper, with a one-bedroom apartment in the city costing only $265 (around £200) per month.

Malaysia also offers world-class healthcare at a lower price than people may find in their home countries. Expats often go to private clinics to get the quickest service.

Spain

Spain offers some of the lowest cost of living in Europe and has a warm, sunny climate making it a popular retirement destination for many.

Renting a one-bedroom apartment in Valencia costs $525 (around £485) per month in the city centre or $400 (around £350) outside of the city.

If people would like to retire to one of these places, the common message from finance professionals is to begin saving as soon as possible.

For specific advice, people can speak to a financial advisor.