This article takes a look at the 20 cheapest places to retire with good healthcare. If you wish to skip our detailed analysis of America's staggering expenditure, retirement challenges, and global perspectives, you may go to 5 Cheapest Places to Retire with Good Healthcare.
America's Staggering Expenditure, Retirement Challenges, and Global Perspectives
According to the Peterson-KFF Health System Tracker, the United States of America spends a greater amount on healthcare as compared to other high-income nations, underscoring the substantial investment in the healthcare sector relative to its economy. As of 2022, the health expenditures in the US were $12,555 per person, which is a staggering $4,000 higher than any other high-income nation. Despite this considerably higher spending on healthcare, health outcomes in the country seem rather bleak.
As Bank of America Corporation (NYSE:BAC) rightly asserts, healthcare is the single biggest expense that any individual needs to plan for retirement. Even though the country is spending more on you than you might acknowledge, it is the single biggest cost that is going to keep you on your toes in retirement. T. Rowe Price Group, Inc. (NASDAQ:TROW)’s Retirement Savings and Spending Study (2022) seems to agree, stating that long-term care services and out-of-pocket health care expenses are the top two spending concerns of retirees. In this regard, the Fidelity Retiree Healthcare Cost Estimate even warns that a typical retired couple can expect an estimated health expenditure of $315,000 as of 2023. This “modest” sum doesn’t include most dental services, over-the-counter medications, and even the cost of long-term care.
For the average or potential retiree reading this, T. Rowe Price Group, Inc. (NASDAQ:TROW) offers hope. According to them, estimating your healthcare costs in lump sums isn't going to serve any use for budgeting or planning purposes. This is because healthcare expenses aren't incurred as lump sums anyway. Moreover, combining both premiums and out-of-pocket costs can potentially distort financial planning in the process. Therefore, T. Rowe Price Group, Inc. (NASDAQ:TROW) indicates that separating premiums from out-of-pocket costs is the right way to go about planning health expenses.
Studies aside, the average American in the USA is not able to afford the burgeoning healthcare costs. Due to inflation, many workers in the country are downgrading their health insurance and even delaying medical care as they are losing their confidence in being able to afford the same.
“Considering the amount of anxiety we see from survey respondents about planning for health care expenses in retirement, plan sponsors should work with their record keepers to ensure the educational resources they offer to take this challenge into account.”
Data from the Kaiser Family Foundation further reveals that as of 2021, over 100 million people were living with medical debt. To tackle the future uncertainties that you’re going to face as a retiree, the only good idea, according to the Bank of America Corporation (NYSE:BAC), is to start now. Another strategy that Bank of America Corporation (NYSE:BAC) proposes is to consider a Health Savings Account. HSAs allow individuals to put away money tax-free, and it is also withdrawn tax-free provided that it is used for qualified medical expenses. It is one of the top retirement saving tips that financial advisors propose since they help manage both spending and saving, and even have the potential to gradually increase in value over time.
To compile the list of the 20 cheapest places to retire with good healthcare, we have used our list of countries with the most affordable healthcare for US retirees. Countries in the list have been evaluated on healthcare costs, quality of healthcare, and affordability as compared to the US. Next, we used the countries in the list and rounded up some of the best places within these affordable countries. Each country was assigned a score based on their cost of living and the scores were added to the previously generated Insider Monkey scores. Total sums have been arranged in ascending order from the lowest to the highest scores.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
20. Bologna, Italy
Insider Money Score: 22
Cost of Living: $2,400
Living in Bologna offers expat retirees access to some of the best healthcare in the world. As an expat, you have the option to sign up for private health insurance or join the Italian National Health Services known as the SSN. The SSN proves to be a compelling choice for budget-conscious individuals, offering an outstanding standard of excellence. Meanwhile, private health insurance can be as low as $160 per year to even thousands per year depending on comprehensiveness.
19. San José, Costa Rica
Insider Monkey Score: 23
Cost of Living: $2,000
Costa Rica offers some of the best healthcare in Latin America and is one of the cheapest places to retire with good healthcare. Health insurance costs start as low as $100 per month. Expats can access both the universal healthcare system called the Caja Costarricense de Seguro Social, or the private system. Both systems are subject to constant upgrades, so expats can get treated with peace of mind. Clinica Biblica and Hospital La Catolica in San Jose are two of the three largest private hospitals that expatriates use in the country.
18. San Miguel de Allende, Mexico
Insider Monkey Score: 32
Cost of Living: $1,200
Expats often opt for San Miguel de Allende due to its world-class and easily accessible healthcare. Retirees who are legal residents in the country can get IMSS coverage, i.e. Mexican public health insurance. IMSS clinics and hospitals are located across the country and provide decent healthcare at a fraction of the cost. For those in the 60-69 age bracket, the annual premium for IMSS as of March 2023 was $18,300. Another option for expats is to sign up for private health insurance, where the average cost of a comprehensive healthcare plan is $5,900 annually.
17. Sliema, Malta
Insider Monkey Score: 36
Cost of Living: $2,000
Next up on our list of cheapest places to retire with good healthcare is Sliema, Malta. Malta is an affordable English-speaking country where expats can live comfortably on $2,000 a month. The World Health Organization has ranked Malta’s healthcare system at number 26, ahead of healthcare programs such as those in Portugal and the UAE. Expat residents can choose between public and private health systems in the country. St. James Capua Hospital is one of the best private hospitals in Sliema, offering healthcare that is in line with EU standards. To give you an idea, specialized doctor appointments range anywhere between $10-$70, general practitioner (GP) costs $10-$25, and CBCs cost $20 on average. Meanwhile, private insurance costs range from $300 and up.
16. Valencia, Spain
Insider Monkey Score: 37
Cost of Living: $2,400
Striking the best balance between affordability and good-quality healthcare, Valencia in Spain can be a nice place for expats to retire to. According to the Expat Insider Survey report 2023, Valencia ranks 1st in affordability and 3rd in availability of healthcare, implying that healthcare is one of the best worldwide. The average cost of private health insurance for expats is $150 per month.
15. Medellín, Colombia
Insider Monkey Score: 39
Cost of Living: $1,100
Home to some of the best hospitals in Latin America, Medellín ranks at 15th position on our list of cheapest places to retire with good healthcare. Expats have access to the public healthcare system, but many choose to go with private health insurance because of better quality of care. Colombia's healthcare system ranked one point higher than the US in the 2023 World Health Organization Index, and expats can choose to get their treatment done here with peace of mind.
14. Mérida, Mexico
Insider Monkey Score: 39
Cost of Living: $1,200
Merida, one of the safest places to retire in Mexico, has world-class health infrastructure in place to support expat health. A large number of public and private healthcare options are available for them to choose from, and top medical facilities with certified professionals can be availed at affordable costs. Healthcare costs in Mexico are an estimated 50% less than in the US, and depending on the insurance company and level of coverage, expats pay $1,000 to $2,000 per year. Comprehensive plans can cost an average of $5,900 annually.
13. Panama City, Panama
Insider Monkey Score: 40
Cost of Living: $1,500
Panama City is home to top-notch hospitals and quality health facilities, making it one of the cheapest places to retire with good healthcare on our list. Punta Pacifica, associated with John Hopkins Hospital, is a hub for high-quality medical services. Expats quote GP costs to be around $20 on average while specialist charges an average of $65. The Panamanian insurance market is dominated by MAPFRE and Family Medical, the two largest private insurers. Monthly coverage costs typically range between $50 and $125, depending on your age.
12. Quito, Ecuador
Insider Monkey Score: 41
Cost of Living: $1,500
Ecuador is one of the least expensive countries to retire to. It offers the best healthcare for expats at a fraction of the cost an individual would pay in the US. According to Bloomberg, the country’s healthcare system is the 20th most efficient system in the world. Major cities such as Quito offer expats access to top-tier healthcare. According to International Living, general practitioner costs $20 to $35 while specialists runs range anywhere between $40 to $80. The overall cost of living is also low, making it one of the best places for low-income seniors to live.
11. Cuenca, Ecuador
Insider Monkey Score: 41
Cost of Living: $1,600
According to Medical Tourism Magazine, retirees can benefit from the top-rated medical facilities in Cuenca at one-tenth of the costs they would pay in the US. Undoubtedly, it is one of the cheapest places to retire with good healthcare in the world. Moreover, the expats can expect to pay a monthly premium as low as $70 in Ecuador, whereas they pay an average of $1,200 per month in the US. Expats can also choose the Social Security Healthcare option where they need to provide proof of income to set the rate of their local Instituto Ecuatoriano de Seguridad Social (IESS) insurance, the public medical care in the country.
10. Bogotá, Colombia
Insider Monkey Score: 42
Cost of Living: $800
As discussed earlier, Colombia is one of the countries with the best retirement healthcare. According to Colombian Visa Services, urban centers such as Bogotá offer 100% health coverage, indicating that healthcare standards in the country are of high-quality. Mandatory EPS public health insurance costs a minimum of $36, where the rate of the EPS coverage is calculated at 12.5% of the income per month.
9. Valletta, Malta
Insider Monkey Score: 43
Cost of Living: $2,000
Another cheap place to retire with good healthcare is Valletta. While expats can go with a local Maltese plan, it is generally advisable to purchase an international health policy so that they can gain access to hospitals and doctors as per their liking, as well as avail health insurance in other countries as well.
8. Lisbon, Portugal
Insider Monkey Score: 47
Cost of Living: $2,000
Portugal is one of the cheapest countries for retirement. Lisbon, in particular, stands out for its affordable and quality healthcare system, making it an attractive destination for expatriates. Offering a wide range of medical services and facilities, including public and private options, the city ensures residents can access excellent healthcare without breaking the bank, fostering a healthy and budget-conscious lifestyle.
7. Kuala Lumpur, Malaysia
Insider Monkey Score: 50
Cost of Living: $1,200
Kuala Lumpur is characterized by well-trained medical staff, inexpensive health costs, and state-of-the-art facilities. It is more advisable for expats to go for private health insurance in the country, especially for medical emergencies and major surgeries.
6. Phuket, Thailand
Insider Monkey Score: 51
Cost of Living: $1,500
Another country that is revered for offering cheap but good-quality healthcare is Thailand. Some of the best hospitals in Phuket include Bangkok Hospital, Dibuk Hospital, and Bangkok Hospital Siriroj.
