In this article, we will take a look at the 15 best places to retire in the world on social security. If you want to skip the detailed analysis of exhausting social security funds and expat movement, head over to 5 Best Places to Retire in The World On Social Security.
Social Security’s Insolvent Future
Social Security funds may be able to pay full benefits only until 2033. As reported by CNBC, insolvency may be on the near horizon for two major trust funds: Social Security and Medicare. Due to the ambiguous future that social security holds, a survey by Allianz Life Insurance Company of North America highlights that 74% of people don’t think they will be able to count on Social Security benefits by the time they retire. Likewise, the uncertainty revolving around retirement planning has become even more complex for retirees.
As such, many retirees are planning to claim early retirement benefits before the trust fund goes broke. However, experts at CNBC claim it’s still beneficial to wait until the full retirement age. In fact, The Charles Schwab Corporation (NYSE:SCHW) recommends retiring anywhere between the full retirement age and the age of 70. This way, retirees are entitled to what is known as the "Delayed Retirement Credit." Delayed Retirement Credits are the benefits that are increased by a certain percentage for each month they are delayed beyond the full retirement age.
Another reason retirees are jumping on the early retirement bandwagon is to claim the 8.7% Cost of Living Adjustments (COLA) in effect since 2023. The highest jump in 40 years made in order to offset inflation has been tempting retirees to get their benefits early. However, the real concern for all prospective retirees should be how to minimize their tax bills and combat inflation during the retirement years.
The most stunning revelation regarding retirees has been the lack of knowledge of social security on part of many of them. In a research by Mass Mutual, retirees aged 55-65 were surveyed to assess their knowledge regarding social security. The survey findings reveal that 43% do not know much at all, a peculiar finding considering this cohort is so close to their golden years.
Best Expat Retirement Countries
The ideal retirement income for any retiree comes from three sources: social security, pension, and savings. Bank of America Corporation (NYSE:BAC) states that a lesser number of retirees are delving into their retirement funds, regardless of the high inflation. However, the National Institute on Retirement Security notes that more than 40% of retirees are still dependent on social security only and don’t have any funds to rely on, an alarming fact considering the uncertain future of the funds.
The Social Security Administration notes that as of February 2023, the average social security check is $1,693.88. Considering these figures, many retirees wonder if there are any places to retire for $1,000 or so a month.
As such, the U.S. News & World has determined an entire list, highlighting places like Chiang Rai in Thailand, Corozal in Belize, Cuenca in Ecuador, and Granada in Nicaragua. Other cheapest countries for retirement include Turkiye, Morocco, Malaysia, and Romania.
For retirees who can spare a few extra bucks, best expat countries for Americans include Portugal, Panama, and Ecuador. These places are also in the list of tax-free retirement countries. There are also some countries offering relaxed citizenship for retirement. In that respect, some of the easiest countries to retireto include Carribbean countries like Paraguay.
How to Save for Retirement
With payment cuts arriving sooner than expected, potential retirees should have retirement plans in place to prepare them for their golden years. Retirement funds can help retirees save up for their golden years. Corporations such as Bank of America Corporation (NYSE:BAC) and The Charles Schwab Corporation (NYSE:SCHW) help individuals save for their retirement years. Savings and similar IRAs are offered by Bank of America Corporation (NYSE:BAC), while different types of retirement accounts are offered by Charles Schwab Corporation (NYSE:SCHW) and Interactive Brokers Group, Inc., to name a few. With enough retirement funds, retirees can retire in the best places to retire in the world, such as Costa Rica, the Dominican Republic, and also Spain.
15 Places to Retire in the World on Social Security
To compile the list of Best Places to Retire in The World On Social Security, we have rounded up places from around the world based on their cost of living, healthcare index, and safety index. Each factor was ranked individually. Next, the rankings of each factor were aggregated to come up with our own score.
Places have been ranked in an ascending order of high scores.
15. Bali, Indonesia
Insider Monkey Score: 10
For retirees looking to stretch their retirement incomes a little further, Bali in Indonesia is a good place to retire. A single person can afford to live at $750, leaving much room for luxuries such as spas and snorkeling expeditions. The people mostly speak English, which means language will not be a barrier to stay. The residents also enjoy stunning beaches, spectacular jungles, and a vibrant culture and nightlife. Clinics and hospitals are spread throughout the city, with expats preferring private facilities due to superior service and cashless payments. Overall, Bali is generally considered a safe destination to live too.
14. San Jose, Costa Rica
Insider Monkey Score: 13
More than 70,000 U.S. expatriates live in Costa Rica, many of whom are retirees. Caribbean beaches, tropical climate, and natural beauty make the place a top retirement destination for them. San Jose in Costa Rica is a nice place for retirees to live for $1,500 a month. Many retirees believe they can live on social security and still manage to save some money, too. Costa Rica also offers excellent healthcare facilities, which retirees having permanent residency can access. Besides this, San Jose also has multiple hospitals throughout the city and an airport in case of emergencies. The city boasts a pleasant year-round climate with abundant sunshine even in the rainy season.
13. Medellín, Colombia
Insider Monkey Score: 14
Medellín, Colombia, is one of the best-kept secret retirement places for those looking to retire on a budget. The reason being that not a lot of retirees have moved there despite it being one of the best place to retire in. The city costs as low as $846 to live monthly, making it both affordable and budget-friendly. The cosmopolitan city also offers wonderful views, a vibrant social atmosphere, and a good healthcare system.
The rental estate is cheap, the public transport system is excellent, and it's fairly easy to obtain a retirement visa too. Known as the City of Eternal Spring, the average climate remains 22°C all throughout the year. The city also boasts an excellent healthcare system with more than 80 clinics and health centers.
12. La Paloma, Uruguay
Insider Monkey Score: 14
The fishing town of La Paloma in Uruguay is quickly becoming a favorite retirement destination for expat retirees. Single retirees need only $1,200 to manage their monthly expenses, including rent, leaving behind enough to save as well. The coastal town offers better infrastructure and services than other places in Uruguay, such as banks and medical clinics. However, most English-speaking doctors are available only in Punta del Este and Montevideo. The beach resort also offers several good restaurants, and there are lots of activities to enjoy, such as kite surfing, standup paddle boarding, and even kayaking.
11. Da Lat, Vietnam
Insider Monkey Score: 16
Huddled in between mountains and waterfalls, forests, and farmlands, Da Lat has plenty to offer retirees other than an affordable cost of living. Also known as the City of Flowers, the area is bursting with colors from lilies and roses. The expat community is diverse yet closely knit, with retirees from all countries, such as the U.K., USA, Japan, to name a few. The cost of living is as low as $700, making it extremely cheap for those on social security. However, healthcare is not of high standards, with serious conditions being treated in Ho Chi Minh City (HCMC) hospitals mostly.
10. Athens, Greece
Insider Monkey Score: 19
Athens, Greece, is a hot retirement destination for expats looking to stretch their dollar incomes. The cost of living is as low as $990, including rent. The city includes all major conveniences and has a lot to offer to retirees. Road safety, internet access, and even opportunities to attain education are of high quality. Thirteen major hospitals are available for major medical procedures, and overall the city is clean and green. The weather is sunny and warm most of the year, and residents can enjoy many activities, such as hiking, swimming, and exploring the parks and gardens.
9. Cuenca, Ecuador
Insider Monkey Score: 22
This charming old city can help retirees live on their social security while offering them the best of historical and modern living. Colonial parks, old-world cathedrals, rivers, and friendly locals are a big draw to it. Single retirees can easily live on $990 per month, with enough to splurge on fancy dinners and outings. Movie theaters offer English movies, public transportation is extremely good, and most people don't even need a car. Eighteen hospitals are also available in the city for healthcare needs. Moreover, a major plus is the temperate climate that the city offers. Overall, it is a good place to consider and is also generally safe to live in.
8. Sanlúcar de Barrameda, Spain
Insider Monkey Score: 23
Sanlúcar de Barrameda, Spain, is a small regional town with lots to offer to retirees. The affordable town is situated on the Costa de la Luz, an Atlantic coastline stretch in the Southwest of Spain. The attractive historical center and long sandy beach are two major draws of the town. Single retirees can afford to live on $1,200 per month, making it an affordable living option. Lots of festivals and events keep happening in the city, too, with sherry wine production and the annual horse race on the beach being prominent ones. The city is an ideal option for retirees who wish for beachfront accommodation with warm temperatures. However, residents must learn basic Spanish to communicate.
7. Chitré, Panama
Insider Monkey Score: 26
Located in Central Panama, Chitré is only a half hour away from the Pacific beaches. The city is not only affordable to live in but also safe, with plenty to offer. Residents can expect to live under $1,500 and enjoy the dynamic cultural vibe it offers. In addition to the low cost of living, the city also offers good housing and healthcare. Year-round, the weather is pleasant, and there is easy access to all the amenities. There are two public and private hospitals each, a couple of labs, and also medical and dental clinics. Local and international food options are also available in the host of restaurants developed in the city.
6. Tulum, Mexico
Insider Monkey Score: 27
Hot and humid climates, gorgeous beaches, and a hint of ancient Mayan culture makes Tulum, Mexico a truly spectacular retirement destination. Residents don't need a car if they live in the central town as the area has good walkability. Motor scooters are also quite popular. In addition to the gorgeous beach, the city also offers an offshore reef where residents can do scuba diving, snorkeling, and even fishing. Retirees can expect to live comfortably on $1,500 a month and also avail health services in small clinics or primary hospitals. Major hospitals such as Playa del Carmen are an hour north. Overall, Tulum is one of the best places to retire in the world on social security.
