We’re a retired couple from Dallas — can we afford to live abroad on Social Security alone?
3 min read
Retirement is a time for Americans to live the life they’ve dreamed of — or at least what’s affordable — and that can sometimes mean leaving the U.S. behind. Imagine trading city views and high prices for stunning scenery and a lower cost of living.
Is it possible to live such a life on Social Security alone? Most U.S. citizens are eligible for Social Security payments while living outside the country.
Let’s say you’re a retired couple renting in the Heart of Texas, pulling in a combined $50,000 annually in retirement benefits — slightly higher than the average monthly check of $1,924.35 per retired worker as of October — and you want to maintain a similar standard of living as you might on a $6,500 budget in Dallas.
Here are five destinations offering beauty and affordability with the potential to live on retirement benefits alone. All price comparisons were calculated using cost-of-living database Numbeo, and include the cost of rent.
Portugal offers Europe without the typical high price tag. For instance, living in the northwestern coastal city of Porto would run our couple about $4,000 a month to reside in a place known for beaches, wineries and cobblestone streets. Portugal also ranks No. 7 on the Institute for Economics & Peace’s Global Peace Index 2024. Groceries and dining out are far more affordable than in the U.S. Portugal also has both private and public health care. But if you plan to use public care, make sure you qualify as a visa holder.
Mexico has long been a favorite destination for Americans. It’s warm, vibrant and close to home. Mexico City would cost our couple about $3,500 a month and leave them with some wiggle room. Retirees can enjoy housing, food, and health care at a fraction of U.S. costs.
Read more: I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 3 of the easiest ways you can catch up (and fast)
Malaysia is known for its sandy beaches and lush rainforests, and the Southeast Asian country won’t break the bank of retirees. If our couple is feeling adventurous, the capital city of Kuala Lumpur is livable for under $2,700 a month. Much of the population speaks English, which can be helpful upon first arriving. Malaysia also offers top-notch health care at an affordable price, according to International Living, and ranks 10th on the Global Peace Index.
Costa Rica is often ranked as a top choice for retirees. It’s both inexpensive and stunning, boasting beaches and volcanoes. In the capital city of San Jose, our couple would need about $4,125 a month to maintain their lifestyle. Health care is also affordable.
Slovenia may be small but has mighty appeal. Nestled in the heart of Europe, this country offers safety, affordability and natural beauty. In the capital city of Ljubljana, our couple would need about $4,200 a month — which would put them just barely over their limit, but still within reach — to maintain their lifestyle. Slovenia also ranks No. 9 on the Global Peace Index. One sticking point, however, might be the cost of health care. As a foreign retiree, you may have to dish out for private insurance.
It’s important to note that countries may have different visa requirements, along with varying tax laws. In many cases, Social Security can be exempt from local taxation, however, doing your research beforehand is key. This should include any obligations filing U.S. tax returns. Acquiring a visa may also come at a cost. Medicare also typically doesn’t cover those who live abroad.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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