16 Best Places to Retire in India

This article looks at the 16 best places to retire in India. If you wish to skip our detailed analysis on spending retirement years in India, go to the 5 Best Places to Retire in India.

USA to India: Boomer Retirement Years

What’s driving baby boomers outside of the USA? Retirement savings, or a lack thereof. A substantial portion of prospective retirees, approximately 27% in the USA, have faced challenges in accumulating savings for their retirement years. The total retirement wealth for late boomers, on average, is $299,703 only, while the average amount for a comfortable retirement in the USA has risen to a whopping $1.8 million.

Consequently, retirees have been stretching their social security benefits by migrating to countries such as Thailand, Portugal, Greece, and even India. India, ranked as one of the most popular overseas retirement destinations, is increasingly preferred by expat retirees for its affordable cost of living, diverse culture, efficient healthcare, natural beauty, and spirituality and wellness.

As of 2022, there were 2,346 social security withdrawals in India, with this number expected to increase in the coming years. The country's continuously strengthening economic sector, along with a low cost of living and improving infrastructure, has been luring foreign retirees to India. The resilient economy has also led at least 60% of Non-Resident Indians (NRI) in the US, UK, Australia, Canada, and Singapore to return to India for retirement, notes a survey by SBNRI, a FinTech platform. This proves that India is well on its way to becoming the best country to retire for NRI Indians and foreigners.

Living in the country is 81% cheaper than the US. Moreover, the country boasts a cost of living as low as $800. It is also one of the richest countries in Asia, and many Indian companies trade on the New York Stock Exchange and the NASDAQ. Owing to a strong growth in Q4 2022, the International Monetary Fund has raised it's 2023 growth forecast for India. It now expects India to grow by 6.1% in 2023 and 6.3% in 2024, powered by domestic investment. In July, both the Sensex and Nifty (Indian Stock Market indexes) reached record highs, and analysts express confidence in their potential for sustained positive returns in the coming years.

Both the Sensex and Nifty have posted year-to-date returns of 8.49% and 8.36%, respectively. While these indices have demonstrated strong performance, they have lagged behind the S&P 500, which boasts a YTD return of 12.52%. Nevertheless, it is forecasted that Nifty companies will record strong bottom line growth in Q1, FY24. Profit growth is expected to be driven once again by the BFSI (banking, financial services and insurance) and automotive sectors, from companies such as ICICI Bank Limited (NYSE:IBN), Life Insurance Corporation Of India, HDFC Bank Limited (NYSE:HDB), to name a few. ICICI Bank Limited (NYSE:IBN) and HDFC Bank Limited (NYSE:HDB), in particular, are the largest Indian banks by assets as well, contributing to India's economy.