“How much money do I need to retire?”
This is one of the questions we’re asked most often at Live And Invest Overseas.
Budget is a crucial criterion for anyone considering retirement.
The fact is that we’re living longer than ever before, so we need bigger retirement budgets than ever before.
If the average American retires at age 62 and aspires to live to age 100 (which 54% of Americans do), then you have to be prepared to finance 38 years of retirement.
How much does 38 years of retirement cost?
According to the U.S. Census Bureau, about $2.3 million.
The median household income was $74,580 in 2022.
If you figure that you need 80% of that income in retirement, your retirement budget should be $60,000 per year (or $5,000 per month).
Most Americans’ retirement budgets are much smaller than this. The average Social Security benefit is $22,884 per year (or $1,907 per month).
To make the numbers work and your dollars stretch, look overseas. There, you’re sure to find an appealing destination with a lower cost of living… where even on a Social Security budget, you can enjoy a better quality of life… and retire in style.
I know of a handful of places that are friendly on the pocketbook… places where you can live well on $2,000 per month—just slightly more than the average Social Security benefit and a whopping 60% less than the $5,000 per month you’d need for a comfortable retirement in the United States.
These are places that are not only cheap; they also offer great health care, safety, entertainment options, welcoming communities, solid infrastructure, and more… all the ingredients that make up desirable, high-quality retirement havens.
You’ll find my full selection of 12 havens where you can retire in style on $2,000 per month in the current issue of our monthly Overseas Living Letter. (Right now you can take out a subscription for just $17 in our Memorial Day Sale. Full details here.) But here’s a sneak peek of a few of my preferred bargain havens overseas…
In this European hotspot, you can rent a comfortable home from $735 a month… dine out for $20… cover your monthly grocery bill for $350… All-in, your total monthly outgoings would come to $1,700.
Plus, this country is home to one of the world’s best health care systems, offers abundant sunshine and beaches, and a safe environment in which to enjoy low-stress, low-cost living. Get the full low-down starting on page 13 of this month’s Overseas Living Letter. Access it here.
If you’re retirement dream involves white-sand beaches, virgin jungle, and mountain hideaways, then this Caribbean escape could be perfect for you. And you can settle in here easily thanks to one of the world’s most user-friendly residency and citizenship programs.
A monthly budget of $1,669 will cover your costs here—rent included. Turn to page 25 of this month’s Overseas Living Letter for more.
If you’re looking for a cool-weather mountain retreat offering a low-key lifestyle then this exotic escape fits the bill. The cost of living is an absolute bargain, too. Large, conveniently located apartments rent for $500 to $750 a month; the spring-like climate means energy costs are low and often included in the rental fee, and $80 would cover a couple’s weekly grocery bill.
On a monthly budget of $1,500, a couple could live very well here. Find out more on page 28 of this month’s Overseas Living Letter.
Sincerely,
Sophia Titley
Editor, Overseas Living Letter
