This article takes a look at the 25 best cities where you can retire on $1,500 a month. If you wish to skip our detailed analysis on why seniors are rethinking retirement and the retirement divide between executives and employees, you may go to 5 Best Cities Where You Can Retire On $1,500 a month.
Rethinking Retirement
With thousands of seniors having navigated their way into retirement without a significant nest egg, the query on the table is rather straightforward: What are the odds of retiring well on social security? Given the latest analysis by the Bureau of Labor Statistics (BLS), the prospects don’t look too promising. According to them, the average retiree spends an estimated $4,345 on monthly expenses. Meanwhile, figures from the Social Security Administration reveal that as of August 2023, the average social security check is a mere $1,705.79.
As of the same year, an average of 67 million Americans have been receiving a Social Security benefit, equating to nine out of ten people. Out of this number, 12% of men and 15% of women are relying on their social security checks for 90% of their incomes, a staggering figure given the shaky future of social security funds. To save themselves from the overwhelming levels of inflation and cost of living crisis, many Americans are now rethinking retirement in the US, and moving to other parts of the world.
In this regard, the Wall Street Journal interviewed 6 retirees, who have revealed saving as much as $1.8 million by retiring to other countries. The takeaway? Achieving your dream retirement doesn't necessarily require a substantial retirement fund. Some of the most popular overseas retirement destinations that retirees can choose to live a comfortable retirement include Thailand, Spain, Colombia, the Dominican Republic, the UK, Mexico, Japan, and Canada. Retirees can also check out countries to retire on $1,500 a month, such as Cambodia, Colombia, Guatemala, and Nicaragua. There are even places that promise expats an easy monthly income requirement of $1,000. You can explore some of these awesome places to retire on $1,000 a month to make the most of your retirement funds, all without compromising on your standard of living.
Retirement Disparities: A Divide Between Executives and Employees
The incongruity is that while the regular employee grapples with the limits presented by 401(k) plans, many senior executives of S&P 500 companies such as Walmart Inc. (NYSE:WMT), Hyatt Hotels Corporation (NYSE:H), and The Home Depot, Inc. (NYSE:HD) are cashing in on fat retirement checks. According to the Institute for Policy Studies, the top five executives of S&P 500 firms have had an astounding collective figure of $8.9 billion in special tax-deferred accounts at the end of 2021.
The report further reveals that 46% of Walmart Inc. (NYSE:WMT) workers have zero balance in their company's 401(k) accounts. Meanwhile, at the end of 2022, the CEO of Walmart Inc. (NYSE:WMT), Doug McMillon, was reported to have more than $169 million in his deferred compensation account. Almost 36% of Hyatt Hotels Corporation (NYSE:H) workers and 53% of eligible participants in The Home Depot, Inc. (NYSE:HD) haven't been able to save up in their 401(k) accounts either. Moreover, Board Chair and billionaire of Hyatt Hotels Corporation (NYSE:H), Thomas Pritzker, is stashing $91 million, tax-free, in his deferred compensation account. Former CEO and current Board Chair of The Home Depot, Inc. (NYSE:HD), Craig Menear, has $14.8 million in deferred compensation.
While top executives benefit from the lucrative arrangements stemming from the deferred compensation double standards, regular employees are often left to fend for themselves in the retirement savings game. Due to the widening retirement gap and persistent economic challenges faced by such retirees, many individuals have been exploring their options and exploring places around the world to retire cheaply.
25 Best Cities Where You Can Retire On $1,500 A Month
Next, we listed out all the cities with a cost of living of $1,500 (or lower) a month. We ranked them on factors such as climate, amenities, and livability to score them out of 15 each. Places were then sorted in ascending order from the lowest to the highest scores.
Here are the best places where you can retire for $1,500 a month:
25. Loja, Ecuador
Insider Monkey Score: 9
Known as the Music and Cultural Capital of Ecuador, Loja offers retirees beautiful natural surroundings, access to quality healthcare, and an affordable cost of living. Retiring here does need some Spanish skills, but other than that, it is a beautiful retirement destination to spend your golden years.
24. Mumbai, India
Insider Monkey Score: 10
Also known as the “City of Dreams”, Mumbai is another potential destination to retire on $1,500 a month. The city boasts a beautiful coast, as well as many parks and green spaces. Healthcare is affordable and high-quality here. There is also an active expatriate community to socialize with.
23. La Paloma, Uruguay
Insider Monkey Score: 10
The small seaside city of La Paloma in Uruguay is another one of the best cities where you can retire on $1,500 a month. The temperature in the city typically varies from 46°F to 80°F. Stunning beaches, laid-back atmosphere, and good quality of life make this beach retirement destination an ideal place to spend one's golden years.
22. Barahona, Dominican Republic
Insider Monkey Score: 11
Retiring in Barahona allows retirees the chance to experience laid-back living against a picturesque coastal backdrop. From stunning beaches to the warm tropical climate and its tight-knit local community, retiring to this city is no less than a dream. The mean yearly temperature recorded in the city is 76.4 °F.
21. Prague, Czech Republic
Insider Monkey Score: 11
Home to more than 120,000 expats, Prague is an attractive destination to retire in the Czech Republic. The city offers a rich combination of culture and history, along with affordable living, a relaxing lifestyle, and high-quality healthcare.
20. Kobe, Japan
Insider Monkey Score: 11
One of the top cities to retire in Japan is Kobe. The climate is mild and temperate, the gourmet scene is fantastic, and the affordable cost of living makes it easy to retire at $1,500 a month. Some perks of living here include less crowded spaces, fewer traffic jams, and a good quality of life.
19. Pattaya, Thailand
Insider Monkey Score: 11
Retirees who wish to enjoy city-amenities without compromising on their tropical beach lifestyle can choose to retire in Pattaya, Thailand. Everything from grocery to shopping and rent is affordable in Pattaya, making it one of the best cities where they can retire on $1,500 a month.
18. Manizales, Colombia
Insider Monkey Score: 11.5
Often compared to the likes of California, and even Oregon because of its weather and terrain, Manizales is a nice place to retire on a monthly budget of $1,500. Throughout the year, temperatures typically fluctuate between 57°F and 73°F. Retirees can enjoy dining and nightlife at Cable Plaza, shop at Mall Plaza or Centro Comercial Fundadores, and play games such as golf and soccer at private Club de Manizales. The city enjoys inexpensive and high-quality healthcare, friendly locals, and a relaxed lifestyle.
17. Alicante, Spain
Insider Monkey Score: 11.5
The charming city of Alicante is one of the best places to retire in Spain. Brimming with beaches, bars, and restaurants, it's ideal for those who wish to live an exciting beach life. The city enjoys over 2,800 hours of sunshine throughout the year and has an average annual temperature of about 66.74°F.
16. Corfu, Greece
Insider Monkey Score: 11.75
Set on the famous Corfu island, Corfu City appeals to the retiree looking for a slow pace of life. Owing to its sizable expat community, friendly locals, beautiful beaches, and gorgeous sunsets, the city is a fantastic destination to retire to. It enjoys a Mediterranean climate, with average temperatures being 62.8 °F.
15. Murcia, Spain
Insider Monkey Score: 11.75
With more than 3,000 hours of sunshine per year, Murcia appeals to retirees who've grown tired of the colder climates. The region boasts 27 beaches with Blue Flags, representing their high environmental and quality standards. Retirees can lead an active lifestyle here and also devour delicious Spanish cuisine alongside. Its rich cultural heritage, high-quality healthcare, and safety make it one of the best cities where you can retire on $1,500 a month.
14. Santa Ana, Costa Rica
Insider Monkey Score: 12
Santa Ana, the head city of the Santa Ana canton, provides retirees with a healthy mix of a peaceful environment, affordable healthcare, and a welcoming community. There are well-kept gardens, parks, and green spaces that add to the beauty and allure of retiring here.
13. Uppsala, Sweden
Insider Monkey Score: 12
Retiring on $1,500 a month in Uppsala, Sweden is very much possible with a modest lifestyle. The vibrant university town is ideal for the retiree who wishes to engage in lifelong learning and enjoy its rich culture. Excellent healthcare and a high quality of life are some other reasons to retire here.
12. Braga, Portugal
Insider Monkey Score: 12
Situated in the far north of Portugal, Braga provides an ideal balance of affordable living, a pleasant climate, and a rich history. It is one of the oldest cities in Portugal, promising a tranquil environment and well-regarded healthcare. The city enjoys a moderate climate, with summer temperatures averaging 69 F and winters around 47 F.
11. Georgetown, Malaysia
Insider Monkey Score: 12.5
George Town is regarded as the colorful and cultural capital of Malaysia's Penang Island. Residents in the city get to enjoy an affordable cost of living, a warm tropical climate, and access to high-quality healthcare. Its distinct and delicious cuisine has also deemed it as the gastronomical capital of Malaysia.
10. Antwerp, Belgium
Insider Monkey Score: 12.5
One of the best cities to retire in Europe, Antwerp is a walkable city that promises a rich cultural heritage, excellent healthcare, and delectable cuisine. Retirees here get to enjoy a cosmopolitan lifestyle and a high standard of living.
9. Panama City, Panama
Insider Monkey Score: 12.5
The Pensionado Visa in Panama provides retirees with a straightforward pathway to gain residency in the country. Retirees often choose Panama City when retiring to this country, availing facilities such as affordable living, tropical climate, and stunning natural beauty.
8. Phuket, Thailand
Insider Monkey Score: 12.75
Phuket in Thailand is nothing less than a tropical paradise, offering an affordable cost of living, stunning beaches, and a vibrant expatriate community. Expats usually choose to live close to Rawai, Kamala, and Surin Beaches, to enjoy a peaceful beach lifestyle.
7. La Paz, Mexico
Insider Monkey Score: 12.75
Renowned for its seafront promenades brimming with beaches, parks, and Mexican art; La Paz is one of the best places to retire in Mexico. There are excellent healthcare options available, plenty of recreational opportunities, and a laid-back lifestyle.
6. Belize City, Belize
Insider Monkey Score: 12.75
Offering a combination of affordable beaches, reasonable living costs, and a welcoming local community, Belize City can be an attractive destination to retire to in Belize. Retirees will find all kinds of medical facilities, restaurants, and cultural attractions here.
