In this article, we will take a look at the 15 best places to retire in the Caribbean. If you wish to skip our detailed analysis on a million-dollar retirement, and retiring in the Caribbean, you may go to5 Best Places to Retire in the Caribbean.
A Million Dollar Retirement
Previously, a comfortable retirement in the USA cost an estimated $1 million. However, a million dollars may be insufficient for the retiree today. Julian B. Morris, CFP at Concierge Wealth Management, notes,
“$1 million likely isn’t enough for retirement anymore because the cost of living has continued to rise from previous generations.”
Human beings are also living longer, Morris notes. Due to this reason, it is quite difficult that the amount will cover healthcare expenses for a longer period of time. Adding to the challenges, social security is projected to be depleted by 2033, further exacerbating the financial concerns of retirees.
Northwestern Mutual's 2023 Planning & Progress Study has updated the $1 million forecast, specifying that Americans now require a minimum of $1.27 million to enjoy a comfortable retirement. Working for decades amidst the rising inflation, every potential retiree needs passive income and peace of mind. Nest eggs work as a support system in this regard, complementing social security benefits to help retirees manage expenses throughout their retirement years.
Apart from nest eggs, dividends can also act as a strong retirement foundation, notes the Motley Fool. Some stocks to add to your early retirement portfolio include Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE: PG), and The Home Depot, Inc. (NYSE: HD). Johnson & Johnson (NYSE:JNJ) is a healthcare conglomerate selling medical devices and pharmaceutical drugs. The legendary dividend payer has a manageable dividend payout ratio at 73%.
Similarly, Procter & Gamble Company (NYSE:PG) is the king of household staples. Boasting one of the longest dividend growth streaks of Wall Street, Procter & Gamble Company (NYSE: PG) is offering a solid dividend yield of 2.5% that retirees can gain an advantage out of. Finally, The Home Depot, Inc. (NYSE: HD) operates in a multimillion-dollar industry, increasing its dividends over the last 14 years. The Home Depot, Inc. (NYSE: HD) also boasts a dividend payout ratio of 60% and a solid 2.8% yield.
Apart from these stocks, healthcare stocks can also be beneficial to invest in. One study notes that, on average, healthcare stocks are 23% less volatile than other stocks. Some best healthcare stocks to buy include Horizon Therapeutics Public Limited Company (NASDAQ:HZNP), Johnson & Johnson (NYSE:JNJ), and UnitedHealth Group Incorporated (NYSE:UNH).
Retiring in the Caribbean
Potential retirees aren’t able to save for their retirement years, with lack of financial knowledge being a major cause. The Bureau of Labor Statistics notes that 40% of workers don’t have access to an employer-sponsored retirement plan, adding to the challenge. As such, many retirees choose to relocate to different areas within the States, as well as around the world, that can help them stretch their retirement savings.
Some of the best places to retire in the worldon social security include Chitré, Panama; Georgetown, Malaysia; Madrid, Spain; and Abruzzo, Italy. While these places help retirees stretch their dollar incomes further, many potential retirees would skip them to live on an island instead. Fun, adventure, and beaches are the top reasons retirees love to live on an island.
As such, the best islands to move and start over include Malta; Mallorca; Spain, Penang, Malaysia; and Ambergris Caye, Belize; to name a few. For those who wish to stay within the States, some of the best U.S. islandsto retire to include Hilton Head Island and Kiawah Island in South Carolina, Maui and Oahu in Hawaii, and Amelia Island in Florida.
Another favorite hotspot amongst retirees is the Caribbean. Lower cost of living, established expat communities, rich culture, retirement-friendly policies, and plentiful chances at recreation are some of the reasons retirees wish to move here. Retirees especially love Dominica, as it is one of the best Caribbean islands to retire cheaply. Many individuals also choose to retire early and elope to the islands. With the right retirement strategies, many individuals have been able to move to the Caribbean as early as 39 and 40, reports CNBC. For such couples looking to retire early, Jamaica can be the best Caribbean island to live with a family.
Topping all of these locations is Montserrat. Retirepedia deems Montserrat as the safest place to retire in the Caribbean. The British territory is located in the Leeward Islands, offering coral reefs, black sand beaches, and exciting seaside caves. If all of this excites you to consider retiring to the Caribbean, we have drafted an entire list of the best places you can retire to.
15 Best Places to Retire in the Caribbean
Methodology
In order to compile the list of the top places to retire in the Caribbean, we have used a scoring system based on the number of times each place appeared on a source. For this reason, we have used a total of 5 (1,2,3,4,5) sources. Each place got 2 points every time it appeared on our list of sources.
The scores were totaled, and places were ranked from the lowest to the highest scores. For places with the same scores, tie-breaking was done based on the cost of living. Out of two places with the same scores, those with a lower cost of living were awarded 0.1 points. Similarly, three places with the same scores were awarded 0.2 points for the least cost of living, 0.1 points for the second lowest cost of living, and so on.
Note: Even though Honduras and Belize are not technically part of the Caribbean, we've added them in our list because they share similar characteristics with other Caribbean countries.
Here are the best countries to retire in the Caribbean:
15. Antigua and Barbuda
Insider Monkey Score: 2
One of the best places in the Caribbean for expats is Antigua and Barbuda. Being one of the most prosperous nations of the Caribbean, Antigua and Barbuda comprises their two namesake islands as well as a few smaller ones. The islands enjoy a tropical climate with year-round warm temperatures and abundant sunshine. Retiring here offers individuals the chance to indulge in the beauty of its picturesque sandy beaches and crystal-clear waters. The locals speak English, making it one of the best Caribbean places for English-speaking retirees and expats. Moreover, many modern healthcare facilities are around, and the thriving expat community adds to the charm of living here.
14. Honduras
Insider Monkey Score: 2.1
Freshly made delicacies, friendly locals, and affordable living are the top reasons retirees consider Honduras for retirement. The country also enjoys stunning natural landscapes, beautiful beaches, diverse wildlife, and lush rainforests. The country is only two hours away from the States, making it easy to travel to. Roatán, an island in the country, is the most popular place retirees consider for retirement. Retirees can enjoy all the luxuries and amenities they had before retirement back home, all without breaking the bank. According to Expats on the ground, the average cost for a single person in Honduras is $1,750.
13. Turks and Caicos
Insider Monkey Score: 4
Turks and Caicos Islands is a British Overseas Territory formed by 40 low-lying coral islands in the Atlantic Ocean. Pristine white sand beaches, stunning coral reefs, and turquoise water make the perfect setting for an ideal retirement. Miles of deserted beaches are home to a small population, granting retirees the peaceful, serene lifestyle they desire during their golden years. International-standard hospitals are also available on the islands, with state-of-the-art medical facilities. According to Expatistan, a single person's monthly cost of living on the islands is $2,677, lower than the U.S. average.
12. Puerto Rico
Insider Monkey Score: 4.1
Puerto Rico is a retirement haven on many retirees' wish lists. It is famous for its tropical climate and sunny beaches, offering retirees an appealing escape from the colder climates. Since the island is in U.S. territory, Americans do not need a residency permit to live or retire here. Many active, well-established retirement communities are in the area, with many expats from the U.S. mainland. English and Spanish are the official languages. Most importantly, the cost of living is extremely affordable. Living Cost.org notes that monthly living expenses are $1,617 for an individual living in Puerto Rico.
11. Dominica
Insider Monkey Score: 4.2
Often confused with the Dominican Republic, Dominica is rated as one of the best places to retire in the Caribbean. Not only is the mountainous Caribbean island nation safe to live in, but it also offers a relatively low cost of living, tax advantages, as well as modest healthcare. The "Nature Isle of the Caribbean" is also loved for its rainforests, waterfalls, hot springs, and unspoiled beaches. According to Roc Apply, the cost of living in Dominica for a single person is a monthly $1,500.
10. Curaçao
Insider Monkey Score: 4.3
Beautiful beaches, warm weather, and plentiful recreational opportunities make Curaçao one of the most amazing places to retire in the Caribbean. There are fascinating historical sites to explore, plenty of water sports to indulge in, and attractive tax incentives for financially self-sufficient retirees. The culture here is fascinating too, offering a mix of Dutch, African, and Jewish heritage. The major draw of retiring in Curaçao is that the cosmopolitan offers a really affordable cost of living. According to Livingcost.org, an individual's living cost is a monthly $1,320 in Curaçao.
9. Grenada
Insider Monkey Score: 4.4
Another appealing retirement destination in the Caribbean is Grenada. The island country is located in the West Indies in the Caribbean Sea. The country's major draws are the warm climate, friendly locals, and beautiful natural scenery. Grenada also enjoys a very low crime rate, making it quite safe to live in. Residents get to explore its beautiful sandy beaches, impressive diving spots, enchanting waterfalls, and lush rainforests. The cost of living is pretty affordable, too, with Livingcost.org reporting it to be $991 for an individual on average.
8. The Bahamas
Insider Monkey Score: 6
An unmatched destination in the Caribbean is definitely The Bahamas. The island country comprises roughly 700 islands, luring tourists and retirees from all over the world. The warm waters of the Gulf Stream engulf the island country in an ideally warm climate, with stunning white-sand beaches and crystal clear turquoise waters adding to the beauty and allure of the island country. The official language in The Bahamas is English, making it easier for retirees to live here. The cost of living is relatively affordable, too, with Livingcost.org quoting the cost for a single person to be $1,981.
7. Barbados
Insider Monkey Score: 6.1
According to Livingcost.org, the cost of living in Barbados is $1,292. Warm temperatures, gentle trade winds, and an overall tropical climate makes living in the island country feel like a dream. The beautiful sandy beaches are also ideal for snorkeling, sailing, diving, and relaxing. The infrastructure is well-developed, the expatriate community is welcoming, and the island is safe to live in. Medical healthcare facilities are also modern, with the United States being close by in case retirees need advanced options.
6. St Kitts and Nevis
Insider Monkey Score: 6.2
A deluxe retirement destination in the Caribbean is St Kitts and Nevis. Residents can gain access to a second passport in the country through a Citizenship By Investment (CBI) program, allowing them to gain residency by investing. The island country enjoys stunning natural landscapes, beautiful beaches, volcanic peaks, and lush rainforests that residents can explore. The country has no income tax, capital gains tax, or inheritance tax either. Moreover, the medical facilities are modest, with retirees traveling to nearby islands like Puerto Rico for advanced healthcare needs. The cost of living for a single person hovers around $1,191.
