When planning for your retirement, money is often the most important factor. Unless you have unlimited funds, you may often find yourself wondering how far your budget is going to stretch when the time comes.
Although there are many great Australian destinations that offer everything you can imagine for your dream retirement, the cost of living and property prices may be off-putting. More and more recently, this is why many retirees often choose to spend a significant portion, or all, of their time overseas, in countries where their money may go a lot further.
If you’re keen to travel, experience a new culture, or just get away from it all in your retirement, overseas retirement may be the right option for you. We can help factor this into your retirement planning strategy.
To help you on your travels, we’ve compiled a list of 6 retirement destinations where your dollars can go further.
1. The Philippines
The Philippines, along with a lot of countries in Southeast Asia, has a considerably low cost of living. It scores points for its beauty, boasting some of the most beautiful islands and beaches in the world. The Philippines is known for its natural diversity, as you can choose from beaches, rural areas, and cities for your retirement. The average monthly rental of a 1 bedroom apartment in a central spot will set you back somewhere in the region of $600 AUD, which is quite a steal compared to properties in Oz. Temperatures average around 25 degrees year round, and half a litre of beer will cost you around a dollar. Doesn’t sound too shabby, right?
2. Malaysia
Malaysia is one of the most up-and-coming and developed nations in Southeast Asia. Malaysia is becoming increasingly popular for retirees and recently made it onto the Forbes’ “10 Best Places to Retire Around the World” list. Malaysia boasts some of the best quality healthcare you will find in the region, making it more desirable to the mature crowd. Malaysia benefits from the same low cost of living as its Southeast Asian neighbours, making it a great place for retirees to help their budget go further. And what’s more, if you are a foodie looking to eat your way through retirement, Malaysia is sure to impress, as its blend of cultures makes its cuisine one of the most talked about on the planet.
3. Mexico
If you’re the adventurous type looking to make a drastic lifestyle change in your retirement, Mexico may be the place for you. Offering all the heat and beaches as Oz or the Asian destinations, Mexico is unlikely to disappoint on this front. Although a little further from home, Central and South American countries make up the bulk of the suggestions you will find on similar lists to this.
Mexico is becoming more popular for retirees as, once you become a resident, over-60s can get discounts on a number of things, from airfare to healthcare. This will help your dollars go further in conjunction with Mexico’s remarkably low cost of living. Retirees living in Mexico claim that it’s easy to live an exciting life for well under $1500 AUD per month, making it one of the most up-and-coming retirement destinations. Mexican culture is fun and exciting, and most of the population speak some level of English, which can make the transition that bit easier.
4. Portugal
Portugal is the chosen European destination for this list. Although not as budget-friendly as Asia or South America, Portugal still has a noticeably lower cost of living than the Sunshine Coast. Portugal makes the list due to its beautiful weather and proximity to other European destinations.
If you’re looking to travel in Europe, having a base in Portugal can give you access to great destinations like Paris and Rome, quickly and cheaply. Portugal also has a growing retiree community and some great recreational options like beaches and golf courses. Rental costs for a 1-bed apartment on the Algarve averages at around $650 AUD, making it one of Europe’s most affordable destinations for retirees.
5. Ecuador
This destination is a little more off the beaten track. Ecuador, surprisingly, is one of the most popular destinations to retire in the world. It offers great healthcare at affordable prices, as well as affordable real estate. Ecuador is known for its excellent weather and it also offers plenty of other benefits for retirees. In Ecuador, it is possible to buy a new two-bedroom apartment in the main cities for between $90,000 AUD and $120,000 AUD, making it a great destination if you’re looking to purchase your own property in your retirement.
6. Costa Rica
Costa Rica makes the list as it already boasts an established retiree community. Socialising and settling in when moving to a new country is a key component, and this will be much easier in Costa Rica. Despite its large expat community, Costa Rican locals are known for their friendly and welcoming approach to foreigners. In addition to this, the cost of living in Costa Rica mirrors that of its Central American neighbours, making it extremely affordable.
Infrastructure is to a high standard in Costa Rica and you can rent a one-bed modern condo (apartment) from around $550 AUD. As well as this, Costa Rican local markets offer fresh produce at affordable prices, which can help to maximise your retirement savings. Costa Rica is also known to have a well-established and affordable health care system, which is a key factor in making it a good retirement destination. To top it all off, it is in a great location to holiday to the US and other Central and South American countries, without having to factor in enormously high flight prices.
So, is an overseas retirement the right strategy for you?
Read More: Top 12 Australian Retirement Destinations
Moving abroad in your retirement can be a great way of stretching your budget to help it go further whilst still making the most out of your retirement. Taking advantage of another country’s low cost of living can be beneficial, both to your budget and your retirement experience. When choosing a country, be sure to take into account your own personal needs, like healthcare and dietary needs, and make sure your chosen country can offer you the right lifestyle for the right budget.
While helping with your travel plans is a little outside their purview, if you’re wanting to make sure that your retirement fund can stretch (or fly?) further, contact the team at Ethica Private Wealth Specialists. We offer a 2 Hour Free Consultation to see how they can help.