For most people considering a move especially in retirement, affordability is the single-most influential factor in choosing an overseas retirement destination.
This is because many are fixed incomes so they are looking for a country where the cost of living suits their budgets.
Cost of living will cover:
– Groceries
– Rent
– Utilities
– Health Care
– Household Help
– Eating Out
– Gym Membership
– Travel
– Transportation
– Unexpected Costs
For some, an affordable location can mean more costs for leisure activities because it will provide the peace of mind knowing you are financially secure while living comfortable.
Below are the most attractive exact havens here your money will go much farther than North America.
1. Vietnam
Vietnam provides gorgeous scenery, culture and an astoundingly low-cost and high quality lifestyle.
You can live in modern homes and apartments, eat out, hire a housekeeper, and travel for under $1,500 per month.
In the past year, rents have decreased from 20% to 50% throughout Vietnam. In popular expat havens such as Hoi AN and Hha Trang, luxurious, one-bedroom apartments that rented for $600 per month a year ago are now available for a mere $300 per month. Rents in Hanoi and Ho Chi Minh City have decreased by around 30%, making these cities far more affordable now than even their previously modest prices.
Electricity costs are similar to North American but other utilities are far less expensive.
A one-month prepaid cellphone plan through Vinaphone, for example, offers 3 GB of data and all the calls and texts that you’ll likely need for about $3 per month. High-speed fiber-optic internet costs $12 per month and cable TV plans offering a good assortment of English-language stations start at a mere $7 per month. Packages including cable TV, internet, and cell plans start at $10.50 per month.
Most rental apartments include both cable TV and high-speed internet in the rent, though, so even those would not be typical expenses in your budget; utilities are often not included with house rentals, but they add little to the total cost.
Local wages are low in this middle-income country—many entry-level jobs start out at less than $200 per month—and having a housekeeper, gardener, or other service-related help is quite affordable. Hardworking housekeepers are happy to be paid $2.50 to $3 per hour, with an annual bonus before the important Tet (Lunar New Year) holiday.
Local groceries cost less because fruit, vegetables and meat can be bought at local markets. Supermarkets are a bit more expensive than local markets but it does allow one-stop shopping.
Vietnamese cuisine is one of the freshest and healthiest in the world, and it’s one of the things that attract so many visitors. A big bowl of the enormously popular, hearty Vietnamese phở (beef or chicken soup in a richly complex clear bone marrow broth, seasoned with fresh herbs, chilies, and sprouts), or a bánh mì (a sandwich made with meat, eggs, or pâté, served with cucumber, carrots, and fresh herbs on a French-style baguette) costs about $1.50.
A meal for two at a sit-down local restaurant generally costs less than $10 including beer or soft drinks, and even a meal at an upscale Vietnamese restaurant rarely comes to more than $25 for two people, including beverages.
The majority people in Vietnam, expats included, drive small, gas-efficient motor scooters, so even though gasoline prices are the same or slightly higher here than in North America and the cost of operating a vehicle is less. If you prefer to take a bus, a ticket only costs about $0.31, though bus availability is limited in smaller towns and rural areas. Ride-hailing companies like Grab Taxi that offer fixed fares are an affordable way of getting around; they are often quite a bit less expensive than traditional metered taxis. A mile-long trip costs around $1, though you could also hail a Grab Bike motorbike for about half that price.
Entertainment is another bargain in Vietnam. Watch the latest Hollywood blockbuster at the theater for $4, or gain admission to one of the many excellent museums throughout the country for just $2 or $3. Fitness clubs will often offer promotions if you agree to purchase a six-month or annual membership; it works out to around $25 per month at most fitness centers.
Flights on quality airlines are another affordable indulgence. One-way flights from Ho Chi Minh City to Hanoi are currently just $33; flights from Ho Chi Minh City to Singapore cost $52, and a flight from Ho Chi Minh City to San Francisco is only $439. The relatively new startup, Bamboo Airways, is beginning new routes from Vietnam direct to Los Angeles, San Francisco, and Seattle. Though prices have not yet been announced, the nonstop flights should decrease the flying time from Vietnam to the States by several hours.
Medical care is extremely reasonable with same-day appointments with a specialist at an international hospital cost $20 or less, including a translator; Dentist charges are also very low and many prescriptions can be filled over the counter and cost about 10% of the North American costs.
2. Bali
The tropical Indonesian island of Balii, also known as the “Island of the Gods,” is one of the prettiest places on Earth. While only about the size of Delaware, this little paradise contains dozens of gorgeous white-and-black-sand beaches, incredible waterfalls, volcanoes, terraced rice fields, secret gardens, and primeval jungles.
Since Bali has been a popular international vacation destination for decades, it is well suited to accommodate travelers of all budgets. Five-star restaurants rub shoulders with tiny warung, where a meal of nasi campur (mixed rice), served with meat and vegetables, costs around $1.50. Housing ranges from opulent seaside mansions to tiny huts in the countryside, and foreigners are just as likely to live at either extreme. Based here, you could live as luxuriously, or as frugally, as you choose.
Seaside communities such as Sanur and Canggu provide a lifestyle costing less than $1,500 per month (includes a 2 bedroom house, all utilities, eating out and some imported foods. Upscale towns like Seminyak and Legian are a more expensive but still below North America.
Furnished, two-bedroom houses in Sanur that include small yards and private pools range from around $450 to $800 per month, while three-bedroom apartments in desirable neighborhoods throughout the popular southern beach areas rent for $550 to $1,500 per month. Most leased properties require payment of the entire lease upfront, whether it’s for six months or 20 years. The benefit is rent will not increase over time but the initial outlay can be steep. Short-term rentals through Airbnb or working out a monthly agreement can help those not wanting a long lease.
The artist’s community of Ubad, in the hilly interior, offers a high quality of life for even lower prices than the southern resorts. One-bedroom apartments start at less than $300 per month, and the town has an incredibly large selection of restaurants where you can get delicious local meals for $3 or less.
Other options for living in Bali include the laidback small towns of Amed on the northeast coast, Candi Dasa on the eastern coast, and the towns on the far north side of the island, including Lovina, which is one of the best places in Bali to watch spectacular sunrises and the dolphins playing just offshore. All these towns offer a high quality of life for even lower prices than the southern resorts.
Bali’s airport is in the centrally located city of Denpasar. For the vast majority of people living here, home is less than an hour’s drive from the airport. There aren’t any direct flights between Bali and the U.S., so you’ll need to change planes in Taipei, Istanbul, Tokyo, Singapore, or another transportation hub along the way.
“As for getting around, most expats who live in Bali own motorbikes or cars, though others who don’t care to drive on the frequently traffic-clogged roads hire their own drivers for $25 or $30 per day to get around. Regardless of what mode of transportation you use, Bali is a small island, and getting around isn’t expensive. Bemos—small vans that have been converted into little buses—ply the streets in some areas, and in-town rides generally cost a dollar or less.”
If the idea of living on a tropical island with an idyllic climate, friendly locals, a thriving expat scene, and an affordable lifestyle appeals to you, consider a trip to Bali. It’s a beautiful place that has been welcoming western tourists to its sun-drenched shores for nearly a century.
3. Bolivia
Although Bolivia is not an obvious choice for many, it tied for third place.
This little South American haven, wedged in between Peru, Argentina, Brazil, Chile, and Paraguay is safe. The local Andean Indigenous culture is rich. The cities balance tradition and history with modern amenities and conveniences.
Bolivia has one of the lowest costs of living. Consider the cost of everyday, common expenses like: Rents starting at $200 for nice apartments in good neighborhoods close to everything in town; the menu del día of soup, an entrée, fruit juice, dessert, and coffee for under $2 at the no-frills neighborhood restaurants; meals at top-end restaurants, with wine, for about $30 for two; a latte or cappuccino at a trendy café for 75 cents.
Other affordable everyday expenses include: A taxi ride anywhere in town for about $1.50 (less for shorter trips); a cross-country flight for $45; a visit with a primary care doctor $15, and a specialist $30; medications at 30% U.S. prices; a healthcare plan at a private facility is $100 per month; a weeks’ worth of groceries for two for $20 per week; a gardener and maid twice a week for $150 per month; and all monthly utilities for $50.
4. Cambodia
Cambodia tied Bolivia. This small Southeast Asian countries is one of the fastest growing economies in the world.
The capital city of Phnom Penh has blossomed into a bustling city full of skyscrapers, malls, and upscale restaurants. It’s hardly recognizable from the ramshackle metropolis that it was just a decade or two ago. Fortunately, this city—and the rest of the country—still offers solid value for foreigners looking to live in a place with cheap beer, warm weather, friendly locals, and an active expat community.
Rent in the smaller towns and cities can be a bargain. Battambang, Cambodia’s arty, second-largest city, located not far from the Thai border in the northwest corner of the country, provides a good example. One-bedroom apartments start at around $225, and houses don’t cost much more than that. Living here, you’d be in a classic French Colonial-era city; the downtown is dotted with art galleries, interesting architecture, and some excellent restaurants. If you venture just a short distance from town, you can explore ancient Khmer ruins. Best of all, Battambang is small enough and flat enough that you can get around quite easily on foot or by bicycle. Tuktuks (motorbike-powered rickshaws) are always available to provide rides in the city for about a dollar; longer trips are affordable, too, though you may want to bargain a bit.
Medical care in Cambodia has improved recently, and the country now has its first JCI-accredited hospital. The Royal Phnom Penh Hospital—owned by the huge Bangkok Hospital consortium—offers full check-ups, including a physical examination, an EKG, and a full laboratory workup for only $115. Doctors in private clinics charge as little as $5 for consultations, though a visit with an English-speaking doctor will cost about $25.
It takes at least 18 hours to fly from Cambodia to the U.S., but flights are quite reasonable. One-way tickets between Phnom Penh and San Francisco start at around $600, and you can find round-trip tickets starting at $1,041 or less. Prices are similar for travel to other coastal cities in the U.S. The country has two international airports: Phnom Penh and Siem Reap. Of these, Phnom Penh is the larger of the two airports and handles more destinations. Since there are no direct flights to the U.S. or Canada, you’ll need to make at least one transfer along the way.
Cambodia uses two currencies, but the main one you’ll see is the U.S. dollar. They’re dispensed at most ATMs, and outside of making small purchases at the market or buying street food, most items are priced in dollars. When making most of your purchases, use dollars; your change will be in Cambodian riel.
