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.
“Nifty earnings are set to grow 25 per cent YoY in Q1FY24,” says Sneha Poddar, AVP, Research, Broking and Distribution, Motilal Oswal Financial Services. “The profitability of oil marketing companies (OMCs) is likely to surprise the market, as it is anticipated to surge to `40,500 crore during the quarter from a loss of `1.85 lakh crore a year ago,” she says. Excluding OMCs, Poddar adds, Nifty companies’ earnings should rise 11 per cent YoY, while the operating profit margin (excluding OMCs and financials) is likely to expand 110 basis points YoY, “driven by a sharp decline in commodity prices”.
Similarly, the Goldman Sachs Research forecast also predicts that India will have the world's second-largest economy by 2075. A significant driver of growth for its economy, the forecast states, is capital investment. Owing to a fall in dependency ratios, rising incomes, and deeper financial sector development, India is likely going to have a large pool of capital to drive up levels of investment in the country. Healthy balance sheets of banks such as ICICI Bank Limited (NYSE:IBN) and HDFC Bank Limited (NYSE:HDB) favor the initiation of a private sector capital expenditure (capex) cycle. Furthermore, its favorable demographics characterized by a younger population and falling dependency ratios are another strong driver of economic growth.
Best Places to Retire in India
Besides the low cost of living and resilient economy, India is also considered one of the best places to live after retirement in the world because of its rich cultural heritage, natural beauty, and affordable healthcare. From classical music to traditional festivals such as Holi and Diwali, to the delectable and diverse Indian cuisine, there is so much that India can offer to retirees.
The country boasts the majestic Himalayan mountains to the north and pristine tropical beaches in the South. Retirees can immerse themselves in the beautiful landscapes and explore the various recreational activities within.
For those considering retiring in India, they might be inclined to ask: how much is enough?! According to Nomad List, a comfortable retirement in India can cost a single retiree around $950 per month. There are many places that retirees can opt to settle in. However, choosing from the best places to retire in India for retirees largely depends on their individual preferences and lifestyle choices.
Mumbai, Hyderabad, Goa, and Delhi are only a few of the many places that retirees can choose from. However, you must read on to find whether any of these places make the cut to our list. Some retirees prefer peace and quiet over the hustle and bustle of large cities, while others prefer big cities where they can socialize and be part of bigger social communities.
Yet many retirees prefer cities and towns that offer them the best climate. As such, some of the best places to live in India climate-wise include Nainital, Bengaluru, and Goa. Nainital, a quaint hill station nestled in the footsteps of the Himalayas, has temperate weather, with temperatures ranging from 15 to 25 degrees Celsius. Bengaluru, the capital city of Karnataka, also has pleasant weather, with temperatures ranging between 20 to 30 degrees Celsius. Lastly, Goa, a popular beach destination in India, has average temperatures ranging from 25 to 35 degrees Celsius, with warm winters and hot summers.
Methodology
In order to compile the list of best places to retire in India, we have taken a look at 10 (1, 2, 3, 4, 5, 6, 7, 8, 9, 10) sources. We also explored forums like Quora and Reddit to determine what expat retirees consider the best places.
A consensus approach was used, and each place was awarded one point when a source recommended it. Points were summed up and places were ranked in an ascending order from the lowest to the highest scores.
The cost of living mentioned is discussed for a single expat retiree per month, and include expenses for a one-bedroom apartment on rent, utilities, groceries, and miscellaneous expenses. Sources for these figures include Nomad List, and Cost of Live, amongst others.
Here are the best places to retire in India:
16. Puducherry
Insider Monkey Score: 2
Formerly known as Pondicherry, Puducherry is one of the top retirement destinations in India owing to its cultural diversity, captivating beaches, and cheap cost of living. The city offers a calm and serene environment for retirees, unlike the hustle and bustle urban life usually offers. The French colonial architecture remains, and retirees love exploring the tree-lined streets, French cafes, and colorful buildings. The coastal climate means temperatures remain mild throughout the year, offering plentiful activities. Rent for a one-bedroom apartment here can vary from $150-$350, while total cost of living averages around $600.
15. Kasauli
Insider Monkey Score: 2
Nestled in the foothills of the Himalayan mountains, Kasauli is a charming hill station brimming with natural beauty. The Shivalik range, the pine forests and lush green landscapes are the perfect backdrop for retirees to spend their golden years. Climate remains moderately pleasant throughout the year, with cool summers and cold winters. The town has basic healthcare facilities, whereas specialized care is accessible in the nearby city of Chandigarh. The total cost of living for a single expat retiree in Kasauli is approximately $700 to $1,000 monthly, depending on lifestyle choices and housing preferences.
14. Delhi
Insider Monkey Score: 2
India’s capital city, Delhi, is another one of the popular retirement places in India. Expat retirees often prefer this city as it offers world-class amenities that they need, such as healthcare. The city is steeped in history and culture, with many sites, museums, and cultural events to explore. The cuisine in Delhi is unimaginably diverse, the transportation network extensive, and great many shopping options. While the cost of living for a single expat retiree can vary based on needs and lifestyle choices, it is $713 per month on average.
13. Bengaluru
Insider Monkey Score: 3
Enjoying a vibrant cultural scene, excellent healthcare facilities, and a pleasant climate, Bengaluru is one of the top retirement havens in India. The city’s cosmopolitan culture has much to offer retirees in terms of music, theater, and even arts. The city is also beautiful, with many parks and gardens. Moreover, there is a sizable expat community here to socialize with. To retire in Bengaluru, a single expat retiree would require $629 on average, with $228 spent on rent.
12. Ahmedabad
Insider Monkey Score: 3
Another one of the best Indian cities to retire to is Ahmedabad. The city has well-established hospitals and medical facilities, and many come here for medical tourism. The city is also culturally rich, offers delectable street food, and boasts a diverse climate characterized by hot summers and mild winters. The cost of living for a single expat retiree is $1,017, of which $586 is usually spent on rent.
11. Bhubaneswar
Insider Monkey Score: 4
Another appealing retirement destination in India is Bhubaneswar. Home to a rich cultural heritage, modern healthcare facilities, and prestigious educational institutions, retirees will find settling here to be a breeze. The climate is tropical and pleasant, and the city is close to the Puri beach and the Chilika Lake, where retirees can enjoy a coastal getaway. The cost of living for a single expat retiree in the city is $475 on average, with $96 per month spent on rent.
10. Mumbai
Insider Monkey Score: 4
Mumbai, the "City of Dreams," can be a dream retirement destination in India for expat retirees. The dynamic metropolis is home to world-class healthcare, a beautiful coast, and many parks and green spaces. The public transportation system is extensive, so retirees can easily travel within the city. There is also an active expatriate community, so retirees can connect with others and feel at home. The cost of living for a single expat retiree is $950 on average, with $510 spent on rent.
9. Dharamshala
Insider Monkey Score: 5
Dharamshala, the winter capital of Himachal Pradesh, is famous amongst expat retirees owing to its majestic Dhauladhar mountain range, lush greenery, and pleasant climate. The town is culturally diverse and is home to a significant Tibetan population influencing the culture here. It is also a spiritual and wellness hub. The Dalai Lama temple and similar Tibetan monasteries have earned the nickname "Little Lhasa." The cost of living here for a single expat retiree may range from $800 to $1,500 per month.
8. Goa
Insider Monkey Score: 5
Situated on the western coast of India, Goa is a popular tourist destination in India. It doubles as one of India's best places to retire due to its attractive beaches, tropical climate, and lush landscapes. The pace of life is laid-back here, and the expat community has been increasing over the years. On average, a single expat retiree would require $1,024 monthly to retire here, with $791 spent on rent.
7. Jaipur
Insider Monkey Score: 6
The "Pink City" of Jaipur maintains its pink allure to this day, reinstating its commitment to history and culture. Retirees appreciate the cultural exploration they are offered and marvel at the architectural wonders of Rajhastan’s past. Jaipur is also considered a shopper’s paradise, and traditional Rajasthani jewelry and clothing are its highlights. The cost of living for a single expat retiree is $536 a month, with $118 spent on rent.
6. Mysore
Insider Monkey Score: 6
Also known as a Pensioner’s Paradise, Mysore is a wonderful retirement destination in India. The city is bursting with parks and lush gardens, and the nearby Chamundi Hill provides a scenic view to retirees. The climate is pleasant and moderate here, and healthcare facilities are well-established. It is also quite affordable to live in, with a single expat retiree requiring $556 a month to live here.