7 Places to Retire Abroad in 2011 for an Affordable Lifestyle

The British government may be considering abolishing the requirement to buy an annuity with your pension, but until they do, if you want any form of freedom in retirement you need to retire abroad!  That way you can potentially free your pension thanks to the likes of QROPS, and you can certainly find a more affordable, potentially improved lifestyle as well – as long as you make your country choice carefully.

So, whilst the likes of France and Spain, Italy and Portugal have been popular for the past couple of decades with would-be expat retirees, where will the savvy be heading in 2011 if they want to retire abroad and find an affordable lifestyle?  Thanks to feedback from a handful of Shelter Offshore readers who are currently in the planning stages of their international retirement, we’ve been given some very valuable insight into the current country choices.

If you want to know where to look for a decent standard of living and an improved cost of living, read on to discover 7 2011 retirement abroad hotspots…we’ll give you the pros and cons of each country.

1)  Northern Cyprus

Northern Cyprus has fallen in terms of its generally rated appeal with would-be expats, purely because it has become known that it is an exceptionally hard place to make a living.  However, for a retiree, it is still a very interesting choice.

Real estate remains cheap – much cheaper than in southern Cyprus – and the property disputes are now all handled in the North and unlike in Spain, no one is having their home demolished and no one, other than the government, is being asked to pay any form of compensation. 

There is a widely held belief that some form of resolution to the ongoing island division is just around the corner…particularly as Cyprus is soon to hold the EU presidency and the EU is hugely embarrassed that it has a divided nation as a member!

So, if you’re happy enough to look beyond the obvious issues that are the main reason why Northern Cyprus is still such a cheap place to live, you can have a very good quality of life on a relatively low pension income.

The weather in Cyprus is as close to perfect as you can get – with a very short winter and a long, hot, dry and glorious summer.  The local food and drink is high grade and healthy, (well, Cyprus is a Mediterranean nation after all!)  And the local people are welcoming of foreign residents.

Bureaucratically speaking you need to accept low level corruption (it’s more like nepotism and favouritism than corruption!)  As a foreigner you will come to learn that there are different prices for different people, and tread carefully when making new friends as those most keen to take you under their wing may actually be most keen to see what you can do for them!

2)  Argentina

Choose where you live in this vast and glorious nation carefully…the climate differs dramatically, and the lifestyle you can enjoy can differ too.  There are plenty of expats who have gone before you and set up home in Argentina, however, as the country is just so big, they seem very well spread out!

It will be hard to find an expat enclave if you crave such a thing.  Red tape can be onerous…and you really have to make an effort to learn Spanish to get the most out of your relocation.

If you can get past these hurdles you’ll be rewarded with a very free lifestyle in an inexpensive nation where the quality of life is decent.

Food and local wines are fabulous, real estate is cheap, there is a truly European vibe in Argentina, and the big towns and cities are fun and feel fairly safe.

3)  Panama

Panama is not as cheap as it once was, but then it is now far more sophisticated than it once was too – so it’s a pay off!

Choose where you want to live carefully after listening to local advice and travelling around – some towns are more expensive and/or less safe than others (Colon)…some (like the city of David) are fabulous.

Some infrastructure issues can be trying, low level corruption can be an eye opener, certain communities are very, very quiet, and if you decide to live off the beaten track you may have a commute if you need decent medical care.

Having said all of that, you can afford a decent standard of living in Panama on a tight budget, and the country is very beautiful, it’s blessed with an excellent climate, and of the expats who have made the transition and established a new life for themselves in Panama in retirement, the vast majority are very pleased that they made the move.

4)  Bali

Even when Bali was a little overrun with tourists before the 2002 and 2005 bombings it was probably one of the most peaceful, beautiful places on earth.  The bombings have done incredible damage to the island’s peaceful reputation however, and this is a genuine shame for the mainly Hindu Balinese people who are among the friendliest people on earth.

If you want a very quiet retirement you can find it in Bali, and if you want a more lively retirement with plenty of interaction with other expats and locals, you can find it in Bali!  In other words, you can build a life on your own terms on this exceptionally beautiful island.

The cost of living can be very cheap if you choose to live modestly – and there are plenty of expats living in this way on the island.  Alternatively, you can access and purchase luxury on the island…therefore the way you live will be dictated by your preferences and budget.

5)  Mexico

Americans view Mexico as a cheap retirement destination, but for Brits and Europeans it’s a country associated with drug cartels, crime and corruption!  So, who’s right?  The answer lies somewhere in the middle!

If you want to avoid the crime then avoid the border towns and the larger cities.  However, be aware that petty crime in Mexico is not considered a very big deal, so it is something you may have to accept.  There is low level corruption too – but beyond all of these negatives it is a beautiful country with an amazing culture. 

Mexico is home to fascinating and warm people, and thanks to the Americans practically colonising parts of it in retirement, it has the sophistication and infrastructure many would prefer.

You can access decent healthcare in Mexico, you can get all mod cons, you can live surrounded by English speaking expats…and/or you can choose to get further immersed in local life!  The cost of living can be very affordable depending on how and where you choose to live.

6)  Slovenia

Not to be confused with Slovakia, Slovenia (which broke from Yugoslavia in 1990 and avoided much of the violence associated with the regional divide) has vineyards, forests, snow-capped mountains, historic cities, ski resorts and it enjoys a Mediterranean-style climate near its tiny coastline.  What’s more, it is one of the cheapest parts of Europe to live in and it is a prosperous country in its own right.

The one major downside with Slovenia is the language, it’s not a language you can easily learn before you relocate, however the good news is that Slovenia has an exceptionally high literacy rate, and most citizens speak a second language.  If you speak German (and English of course) for example, you will go far.  Additionally, as you’re thinking of retiring to Slovenia, you will be able to use some of your free time to study the language!

Culturally the nation is exceptionally rich.  Economically it is on a par with parts of Western Europe.  In terms of the cost of living however, “it’s a chardonnay lifestyle on a beer budget” according to writer Carolyn Vicars!

For retirees, the rules are that you need to have proof of health insurance coverage, proof of ‘sufficient income’ to live on, and a permanent address in Slovenia in order to be allowed a visa to remain.  A permanent address can of course be a rental property.

7)  South Africa

And last but by no means least we come to South Africa – where you can live comfortable on a monthly budget of about £1,000 - £1,200 and enjoy a first class lifestyle.

The nation has everything you could ask for in terms of climate, culture, lifestyle, decent food and drink, amazing scenery and wildlife – what’s more, English is spoken everywhere and there are plenty of European expats living all across the country. 

However, South Africa also has crime and many internal social and political problems – and it’s these that dominate the news of course.

Having said that, if you speak to expat residents in South Africa you will often find they live unaffected by crime, and that they are more positive about South Africa’s future than the local citizens are!  You can secure yourself and your property from crime by living in the ‘right’ areas and by being sensible and streetwise…and then you may well feel you’re living in an undiscovered paradise that you’re happy others are too afraid to explore!

Health care is high class, there are favourable double taxation agreements in place in South Africa meaning some retirees can seriously reduce their tax burden, and getting a retirement visa for residency in South Africa is relatively simple.

All in all the country has more plus points than negatives – however, the negatives it does endure are serious and you must ensure your own safety as a priority when choosing a place to live in retirement in South Africa.

If you’re thinking of retiring abroad in the near future and you have an alternative country in mind for an affordable cost of living and high standard of living balance, we’d love to hear from you and learn how and why you came to choose your specific nation for your overseas retirement.

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