This article takes a look at the 16 places to retire for $1,000 a month. If you wish to skip our detailed analysis of global inflation and the cost of living crisis, you may go to 5 Places to Retire for $1,000 a Month.
Global Inflation and the Cost of Living Crisis
According to the World Economic Forum’s Global Risks Reports 2023, the most severe global risk crisis that the world will be facing for the next two years is the “cost-of-living” crisis. The report states that,
“Governments and central banks could face stubborn inflationary pressures over the next two years, not least given the potential for a prolonged war in Ukraine, continued bottlenecks from a lingering pandemic and economic warfare spurring supply chain decoupling,”
Due to the global cost-of-living crisis, many countries have been facing double and triple-digit year-on-year food price inflation. The global food and energy price surges caused by the war in Ukraine has, in turn, led an estimated 71 million people to fall into poverty, notes a 2022 report by the United Nations Global Development Programme. Many economies such as the USA have had inflation reach 40-year highs. The International Monetary Fund reveals that food inflation has been responsible for eroding global living standards at the same rate as inflation of all consumption did in the five years before the pandemic.
The World Food Programme further highlights that more than 345 million people are facing high levels of food insecurity in 2023. Even worse, 129,000 people are expected to face famine in places such as Mali, Somalia, Burkina Faso, and South Sudan. The latest World Bank figures reveal that food price inflation between May and August 2023 remains high for countries around the world. 69.6% of high-income countries, 64% of upper-middle-income countries, 86.4% of lower-middle-income countries, and 52.6% of low-income countries face high levels of inflation. Inflation levels in many of these countries have breached the double-digit threshold, intensifying the economic challenges that these countries face.
After Russia invaded Ukraine, what has exacerbated the food insecurity situation around the world, many countries have been putting food trade restrictions as a means to increase domestic supply and reduce prices. As of September 2023, a total of 19 countries have implemented 25 food export bans, while 7 countries have implemented 12 export-limiting measures, reports the World Bank.
Role of Corporations in Fueling Inflation
Besides the lingering impacts of the Ukraine war and supply chain bottlenecks, major US corporations have also been responsible for the rising levels of inflation around the world. According to a Unite investigation, nearly 60% of inflation in 2021 has been because of corporate profits. Further, New York Times reveals that some of the biggest corporations have said they do not plan to change their course when it comes to increasing their prices. The Procter & Gamble Company (NYSE:PG), PepsiCo, Inc. (NASDAQ:PEP), and Unilever PLC (NYSE:UL) are some of the companies that have raised their prices throughout the year. The Procter & Gamble Company (NYSE:PG), the consumer goods giant, made a series of price hikes in 2023 that led to an organic sales growth of 7%.
Moreover, in Q4 2023, sales for the company increased by 5% to $20.6 billion. Companies such as The PepsiCo, Inc. (NASDAQ:PEP) and Procter & Gamble Company (NYSE:PG) have been able to maintain these higher prices, even after inflation has started to moderate, by pitching their offerings as “premium products”. “Irresistible superiority” is the term the consumer goods company has used to describe the high value their products offer to customers. Similarly, PepsiCo, Inc. (NASDAQ:PEP) raised its average prices by 15% in the three months ending June 2023.
"In developed markets, we see consumers still really doing quite well... they may be pulling back to some degree on the bigger ticket purchases... but we are an affordable luxury... people are still buying our products at a healthy rate," Chief Financial Officer Hugh Johnston told Reuters.
As a result, Q2 2023 saw net income boost to $2.75 million, and the company anticipates its full-year earnings to be up by 12%. Many food corporations have also been benefitting from inflation-driven price increases, such as Conagra, The Kraft Heinz Company (NASDAQ:KHC), and Tyson Foods, Inc. (NYSE:TSN). Profits for The Kraft Heinz Company (NASDAQ:KHC), the multinational food company that makes Kool-Aid and Jell-O, in Q4 2022 were up by nearly 450%. Q2 2023 saw the company raising its prices by 11% year-over-year.
Similarly, Tyson Foods, Inc. (NYSE:TSN), one of the largest meat companies in the US, also saw its profits double between Q1 2021 and Q1 2022. In recent news, with chicken prices hitting record highs in US grocery stores, Tyson Foods, Inc. (NYSE:TSN) and similar companies are all set to benefit from a boost in margins as customers divert to chicken from beef and pork due to inflationary pressures.
Due to the current cost-of-living crisis, the hardest hit demographic amongst all are retirees with fixed earnings. This demographic is increasingly looking for options to retire to, stretching their retirement incomes the farthest they can. Some of the cheapest countries for retirement they can explore include Chile, the Dominican Republic, and Thailand, amongst others. To help such retirees, we have compiled a list of some of the world's cheapest places where they can retire for $1,000 a month:
The cheapest places from each country were chosen from our first list, while we also selected cities to retire for $1,000 a month from our second and third list. Places were ranked in descending order from the highest cost of living to the lowest.
The sources used to determine the monthly cost of living for an individual expat retiree include Nomads List, and International Living, amongst other sources.
Here are the 16 places to retire for $1,000 a month:
16. Central Valley, Costa Rica
Cost of Living: $1,000
Revered for its “eternal spring” temperatures, Central Valley is one of the best places to retire in Costa Rica. Many areas in the region are embraced by majestic mountains and lush green landscapes. Central Valley is also home to some of the best healthcare facilities. There is a thriving expat community, and modern amenities are easily available here as well.
15. Las Terrenas, Dominican Republic
Cost of Living: $1,000
Retirees looking for places to retire for $1,000 a month in 2023 should check out Las Terrenas. Las Terrenas is a charming coastal town in the Dominican Republic. From the stunning beauty of the Caribbean Sea to natural wonders such as the El Limón waterfall and the Samaná Peninsula, the town has much to offer retirees.
14. Tanjung Bungah, Malaysia
Cost of Living: $1,000
Many expats choose Tanjung Bungah as their retirement destination because of its culture, history, and amazing street food. Situated along the coastline of Penang Island, retirees in the town enjoy beautiful beaches, water sports, and lush greenery. There is an active expat community, and well-developed healthcare as well.
13. Cuenca, Ecuador
Cost of Living: $990
Huddled in the Andes mountains, Cuenca in Ecuador is a nice place to retire for $1,000 a month. The "city of eternal spring" has a well-developed healthcare system, a respectable transportation network, and a rich cultural heritage. Cuenca's growing expat community is also a plus for retiring here.
12. Antofagasta, Chile
Cost of Living: $976
The coastal city of Antofagasta is one of the best places to retire in Chile. The city offers retirees a unique destination, characterized by the azure waters of the Pacific Ocean and the desert landscape of the Atacama. There is a thriving cultural scene here, and many water-based activities to enjoy too.
11. Toruń, Poland
Cost of Living: $957
Another good option to consider when looking for places to retire for $1,000 a month is Toruń, Poland. Toruń is a UNESCO World Heritage Site; revered for its medieval old town, cultural events, festivals, as well as the serene parks and green areas.
10. Amed, Indonesia
Cost of Living: $955
Amed, Indonesia is an appealing choice for retirement revered for its stunning coastal scenery, marine biodiversity, and Balinese culture. Amed is also home to many yoga and wellness retreats, an excellent choice for individuals who prefer living an active and healthy lifestyle.
9. Da Nang, Vietnam
Cost of Living: $856
The coastal city of Da Nang in Vietnam is revered for its sandy beaches, majestic mountains, and affordable cost of living. Retirees get to enjoy Vietnamese culture, golf, and outdoor activities, and enjoy the stunning views of the city. There are plenty of malls and restaurants to explore as well.
8. Medellín, Colombia
Cost of Living: $846
Medellín is a vibrant and bustling city in Colombia. The city boasts a growing expatriate community, an efficient public transportation system, and proximity to many natural wonders. Owing to its location in the beautiful Aburrá Valley, retirees get to enjoy many recreational activities too.
7. Murska Sobota, Slovenia
Cost of Living: $786
The tranquil Murska Sobota is an ideal retirement destination for those who wish to retire to a peaceful, yet affordable city. Surrounded by beautiful countryside, the city is home to many wellness centers, thermal springs, and scenic landscapes. It also has a rich cultural heritage and is located near the borders of Hungary and Austria.
6. Pretoria, South Africa
Cost of Living: $767
One of the most beautiful places to retire in South Africa is Pretoria. The thriving capital city is home to diverse cultures and cuisines. It also boasts world-class healthcare facilities, offering high-quality medical care to those who need it. Pretoria has a rich cultural heritage as well, offering many historical sites, museums, and art galleries to explore. Magaliesberg Mountains and nearby reserves are ideal to enjoy the outdoors, relish wildlife, and explore the region’s natural beauty as well.
