Our report about Panama yesterday generated quite an email response from readers who have been looking abroad for a retirement location, but who have found that Europe is too expensive whilst the rest of the world is a bit too ‘foreign!’ We understand readers concerns, after all, if you’ve only ever holidayed in Europe, how on earth can you contemplate Costa Rica as a retirement destination for example?
The good news is that the majority of those who contacted us are really ready to look further afield, but they want to know which countries are realistic as contenders as a place to live well in retirement overseas.
Europe has consistently proven itself to be too expensive for many over the last few years – soaring real estate prices, a weak pound, a strong euro, high food and expensive medical care costs have all stacked up against a move to the likes of Spain or France. So today, just for you we’re going to be looking at alternatives to Europe for affordable retirement abroad.
Let’s begin where we left off yesterday with Panama…
Panama has a special programme for qualifying individuals of retirement age who can prove a monthly income of $1000, (or $1250 for a retired couple) - this ‘pensionado program’ offers retirees significant savings on everything from prescriptions to restaurant bills, and can bring the cost of living right down. However, even if you don’t want to jump through the hoops and qualify, you can still live well on less in Panama.
According to one source, a retired couple can easily get by on just £65 a week – and live well for that as well. Property costs in Panama can be affordable too – though we would encourage anyone contemplating this country to visit first, rent for a while and then take their time finding a place to call home only after exploring all options. Panama City and Colon, the two largest cities, are to be avoided for safety and affordability sakes!
Moving on, how about Belize as an alternative with a distinctive British past?
Belize is a former British colony where there are now tax incentives to relocate if you’re a qualifying individual looking for an attractive place to retire overseas. The ‘Qualified Retired Program’ or ‘Retired Persons Incentive Program’ (same thing, different name) gives one the ability to live in Belize and enjoy all non-locally sourced income 100% free of tax (among other benefits).
Many expats find that qualifying for the program is a hassle though, and that they can remain in the nation under the tax radar anyway…but you should look at all your options and always stay the right side of the law!
Aside from low or no tax, the cost of living in Belize can be as affordable, relatively speaking as Panama. If you shop locally and source in season, locally produced food you will pay very little to live well.
Both Belize and Panama have been ‘colonised’ by retirees from North America already – and they have certainly paved the way to make it easier for foreign residents to settle in and settle down. Therefore, both are practical and realistic alternatives to Europe if you want warm weather, a laid back lifestyle and a cheap cost of living.
How about Turkey if you don’t want to travel so far?
Turkey might be angling for EU entry but it isn’t there yet – which means it has not been hit with the seemingly inevitable inflation that sets in as soon as a nation pegs its economy to the euro! For retirees this means just one thing – Turkey is still cheap!
Anyone who has recently holidayed in one of this massive nation’s many fabulous resorts will be shouting at the computer screen at this point – ‘Turkey? Cheap? NOT!’ However, the ‘real’ Turkey remains affordable – and if you’re moving to live in a nation, particularly if you’re moving there to retire, I would strongly urge you to live well away from the tourism Meccas.
If you step off the beaten track and move to a more modest and realistic location in Turkey, where there aren’t hoards of British and German and Russian holiday makers, you shop like the locals do by bartering, buying local produce from the market and direct vendors, and you avoid supermarkets and expensive ‘British’ pubs and restaurants, you can still live exceptionally affordably in Turkey.
You could catch onto the Thailand bandwagon and relocate to this beautiful Asian nation that’s become a surprise hit with foreign retirees.
Time was, Thailand was only popular with backpackers and slightly suspicious single male holidaymakers of a certain age seeking local ‘love’ – but the nation’s image has changed and its star is rising. So much so that the recent HSBC Expat Explorer survey confirmed something we already knew, Thailand is becoming a popular place to retire.
The MD of a successful expatriate wealth management company recently told us that they can hardly believe the numbers of enquiries they’re now getting from people moving to or already retired to Thailand.
It has the weather, the genuinely friendly people, it has stunning landscapes, healthy food and a very positive attitude to life is pervasive throughout this nation.
The cost of living is also exceptionally low – one website dedicated to retiring in Thailand lists out the costs of living as follows: -
Rent: 7,000 baht per month
Electric: 1,670
Water: 240
Food/shopping: 13,000 including household items, etc.
Entertainment: 4,000
Petrol/diesel: 3,500
Insurance: 1,000
Live in Maid: 7,000
Satellite/Cable TV: 2,000
Misc: 3,000
Total = 42,410 baht a month (or £892 a month) – however, not everyone needs a car or a maid which could wipe a total of £242 off the monthly bill straight away! Plus shopping and entertainment costs can be cut right down if needs be – so if you can afford all of the above, so be it – you will have an incredible quality of life. But if you can’t, you can cut back and still not impact your lifestyle greatly whilst reducing your cost of living to a tiny sum compared to what you probably pay today.
In conclusion…
For many, retirement abroad is no longer a lifestyle decision – it’s a decision being born out of need. A need to find a more affordable place to live, a need to escape the heavy taxes of your own home nation which strip affordability right down, a need to have a better quality of life in a nicer country with a better climate where it’s cheaper – phew! The list goes on…
If you’re contemplating retirement abroad and affordability is a major concern, the good news is that there are places where you can live well for less. You need to do country based research and ensure a nation can fulfil your dreams of it before you commit to relocation however, and engage your head and brain and not just your heart when you visit a nation to try it on for size. Do not be seduced by the sunshine…look at the realities of living day to day in a nation before you decide to retire there.