Financial professionals report that workers should save between 10 and 15% of their pre-tax income starting in their mid-20s. The median retirement fund for age groups 55-64 holds $537,560; however, not everyone has the financial freedom to save or to allow their investments to hit $500,000 during their career. The average annual retirement expenditure also alters based on location. For example, a retiree hunkering down in Alabama spends an average of $50,980 in retirement each year, while an individual retiring in California spends an average of $83,906.
We know that not everyone has the luxury of spending upwards of $80,000 a year in retirement, so we researched alternate retirement locations. We will break down how far $110,000 goes in each of these gorgeous retirement destinations.
1. Mexico
The average cost of living in Mexico is around $982 a month. Filter that number into a yearly budget, and you get $11,784. That yearly budget affords you a little over nine years in retirement, surrounded by spectacular churches and cerulean beaches. If you want to spend less money in retirement, opt for cities like Leon or Morelia, where the average cost of living drops to $812 a month or $9,744 a year. Average rent ranges from $329 for a quaint, one-bedroom room outside of the city to $629 in the city’s hub. Compared to the average rent for a one-bedroom in the US ($1,289), living in Mexico would save you between $700 and $1000 each month.
2. Ecuador
Diversity thrives in Ecuador. Vibrant sea life swims through (and stands on) the Galapagos Islands, an archipelago accessible by ship. At the same time, snow layers the tips of the Andes Mountains, opening up prime skiing real estate to tourists and residents.
The cost of living in the US is 167.7% higher than the price of living in Ecuador, including rent. The average rent for a one-bedroom apartment in a thriving Ecuadorian city center costs 338.24 vs.1,758.34 in the US. Moving out into a quieter, remoter area, rent costs 276.70 for a one-bedroom in Ecuador and 1,445.20 in the US. You can scrape by on $700 a month or $8,400 a year in Ecuador, meaning the $110,000 lasts about 13 years.
3. Portugal
Mysterious caves appear near a bright-blue body of water. Variegated houses fleck the seashore, alluring guests to the town. The scent of fresh grapes from the vineyard wafts through the walkways. You’re in Portugal.
The cost of living in Portugal is around 36% lower than that in the US, with rent prices costing 41.4% below the US average. A one-bedroom dwelling in a remote part of Portugal costs $802.60 vs. the $1,445.20 floating around the US marketplace. For fancier arrangements, expect to pay 1,041.83 in Portugal and $1,758.34 in the US. An expat can survive on $23,000 a year in Portugal, making for a shorter retirement period of close to five years. That brief period allows for the retiree to navigate other options moving forward.
4. Panama
Panama may be the place for you if you have an unquenchable thirst for adventure. The famous Panama Canal flows through the country, connecting the Atlantic Ocean to the Pacific. The biodiverse climate teems with marvelous creatures. Birds ruffle their feathers throughout the Central American isthmus, greeting the numerous birders gathered to appreciate the species. Below the surface, manatees float in shallow waters.
The cost of living in Panama is 38% lower than the price of living in the US. Putting the numbers into perspective, a month of public transit access costs $23.33 in Panama. In contrast, the same ticket costs $65.73 in the US. Rent prices in Panama shift from $496 for a small one-bedroom in the suburbs to $697 for a one-bedroom in a city’s epicenter. Rent in the US costs about $1,000 more for the same kind of apartment. A $110,000 budget spreads through sixteen years of retirement.
5. Costa Rica
Blue morpho butterflies flit through the sky, attracting eyes with their bright blue, almost translucent coloration. Monkeys and sloths climb through the forest, surrounded by hundreds of critters and creepy crawlers. Visitors drink out of pineapples and enjoy various fruit-flavored smoothies and the freshest rice and beans in the world.
Citizens in Costa Rica spend an average of $1,073 on a comfortable monthly lifestyle. Multiplied by twelve, that monthly expense equals out to $12,876 in expenditures per year. When dividing the sum by 110,000, a retiree can stretch their fund for eight years in Costa Rica. Rent in Costa Rica remains 56.7% lower than the rent prices in the US. Plan to pay $738 for a one-bedroom in an expensive area and knock down the price of $200 for an apartment in a budget-friendly area. Living in Costa Rica saves an estimated $1,000 each month on rent, or $12,000 a year.
6. Montenegro
Mountain tops peek out, bordering the Balkan country of Montenegro. Within the mountainous enclosures, ancient churches dating back to the Middle Ages invite onlookers to engage with their beauty. The Adriatic Sea lines the eclectic country, pairing ancient architecture with astonishing beaches, bringing something suitable for everyone.
The cost of living in Montenegro sits 88.6% below the cost of living in the US. The US also has a rent markup rate 157.3% higher than Montenegro’s market. To put that into perspective, a fair-sized one-bedroom space in Montenegro costs $514, with a city apartment of the same size costing $683.58. Montenegro eats up the $110,000 retirement fund in a little over eight years with a yearly budget of $13,200.
7. Colombia
Move to a setting where the Caribbean coastlines mingle with the Amazon: a landscape featuring tree canopies, howler monkeys, and spider monkeys slinging through the trees, plus a gathering of river dolphins and giant otters bathing in the Amazon River. Aside from the Amazon, mountain tops and valleys fluctuate through the landscape, introducing dramatic peaks and unparalleled scenic views of the country.
A stable life in Colombia costs an average between $650 and $1200, depending on the preferred lifestyle. Frugal retired expats can find a one-bedroom apartment immersed in city life for $354 vs. a remote-located dwelling for $300. Tacked onto the rent price, the cost of living in Colombia is 58.1% lower than a US lifestyle. Frugal favorers smooth $110,000 over almost 15 years, while lavish livers dole out the set retirement fund over 7.5 years.
8. Indonesia
Incense stems from the offerings distributed throughout the streets and sidewalks. Locals cruise by on scooters, operating at wicked speeds with intense vehicle control. Dogs and cats roam through businesses, taking a liking to random strangers willing to pet them. Remarkable temples and places of worship invite everyone in to share their love of their god(s).
An Indonesian transplant can live on a budget of $559 a month, or $6,708 a year, unfurling the concrete $110,000 fund over a steady 16 years. Digging into those numbers, we find that Indonesia fares on a cost of living percentage 206%below the US average. Enjoy a nice meal for two people in Indonesia for $16, whereas the US charges $75. Or purchase a pound of rice for $0.41 in Indonesia, where the same bag costs over $2 in the US. Find apartments within expensive cities for $300 in Indonesia and $167 in the cheaper sides of the country.
9. Taiwan
Envision dramatic rocks set on either side of a stream peppered with stones and dense greenery. Over the top of the stream, park visitors climb over footbridges, challenging their fears. Along the way, temples gaze out over iconic lookouts, imploring guests to admire or come in the worship doors. Beneath the temples, a waterfall splits into several avenues, streaming down a rock wall. Over at Sun Moon Lake, a purple-pink sunset paints the sky over the azure lake. Campers and boaters revere the lake’s mountainous backdrop.
Restaurant costs between the US and Taiwan stand out when comparing the differences. Restaurant prices in Taiwan are 62.5% lower than in the US. A meal at a fast-food chain costs $5 in Taiwan and $11 in the US. Monthly rental prices range from $325 to $457 in Taiwan, with an average yearly expense of $9300 to $14,400. Diving into those numbers, $110,000 goes 12 years on the lower side and eight years on the pricier side.
If you are good at speaking English, you could pick up a side gig teaching at a school.
10. India
Want to live in a stunning landscape featuring the marble marvel of the Taj Mahal? The ivory-marbled mausoleum stands prideful on the Yamuna River. India’s scenery and landscape turn it into a gorgeous spectacle, what with thewide range of scenery from the Himalayan Mountains to coastal safari jungles outlined with bamboo. In addition to jungles, architectural feats, and the Himalayan mountains, The Indian Desert adds its own flair of beauty to the Asian country.
The cost of living in India is 307% lower than what an individual spends each year in the US. Rent alone is 684% higher in the US than in the Indian market, meaning a one-bedroom room in an Indian metro area costs $200, and a cozy apartment right outside the metro area costs $125. Adding in the annual cost of living to the rent price, you will find a monthly expense rate of $441 and a yearly rate of $5292. Therefore, based on the $110,000 retirement fund, a retiree can spend up to 20/21 years in India.
11. Croatia
Along the Croatian coast, carbonate rocks just above sea level, cradling multi-colored homes. Part of Croatia’s charm lies in the country’s passion for preservation. Croatia’s architecture specializes in three main styles: baroque, Romanesque, and Renaissance, and three distinct styles create Croatia’s unique landscape. Eight national parks prance through the country, displaying waterfalls near protected Roman catacombs and archipelagos that double as UNESCO heritage sites.
The cost of living in the paradise is 76% lower than the cost of living in the United States. If you single out rent, the cost of rent in Croatia is 180% lower than the housing prices in the US. A one-bedroom apartment in an urban area costs an average of $60, and a one-bedroom apartment in a rural part of Croatia costs an average of $470. An expat in Croatia spends an average of $1140 each month and $13,680 each year, causing the $110,000 to last eight years.
12. Czech Republic
Snowfall dusts the tops of myriad mountains collecting in the European country. Trees hug together, forming a forestry that protects the Karlštejn Castle, a neo-gothic, royal relic built by Charles IV in the 14th century. Riverboat rides through the Punka Caves disclose an up-close viewing of gigantic stalactites and stalagmites. The Czech Republic, like Croatia, masters in preservation, maintaining their ancient architecture and their world wonders.
The cost of living in the Czech Republic is 51% lower than the cost of living in the US. On average, a person living in Czech spends $1,200 a month, or $14,400 a year. The average rent for a one-bedroom in a busy Czech town is $831. The average rent for a one-bedroom in a less crowded Czech town is $664. A potential retiree facing a $110,000 retirement fund could live in Czech for 7.5 years.
13. Oman
Glacial runoff disperses into streams that gather in a valley formed between cliffs. These cliffs, gigantic rock formations, pop up on either side of the stream, materializing in one of the most beautiful natural occurrences ever invented. Oman’s desert fjords weave cobalt water through sandy rocks. Fishing towns materialize on the sides of the natural feature. Another exceptional aspect of Oman is the original Arab architecture inhabiting the setting. Over 15,000 places of worship appear in Oman.
Rent in Oman is 71% lower than rent in the US, with a one-bedroom in the city costing $531.82 monthly and an apartment bordering the city costing $366.58. Adding on additional expenses, the cost of living in Oman is 50.4% lower than what one pays in the US. For example, a 12-ounce water bottle costs $0.28 in Oman vs. the $2.05 it costs in the US. An expat starting their retirement career in Oman may pay $1098 a month or $13176 a year. When we factor those numbers into the $110,000, we discover an expat can live up to eight years on that budget in Oman.
14. Malaysia
Most of the pretty places on this list have a diverse landscape, offering different settings to everyone. Malaysia is no different. The Asian country flexes its impressive islands as it also boasts its city life and religious architecture. Perhaps the best religious architectural sight is Kota Kinabalu, an island presenting a floating mosque. A few miles away from the floating mosque, snorkelers dive below the water, cherishing the flourishing sea life. Above water, The Cameron Highlands (rolling hills) fuel the region with physical tea leaves, flowers, and unforgettable aromas.
The cost of living in Malaysia is 61.7% lower than that in the US. Rent prices are 79.6% lower in Malaysia, too, with a one-bedroom apartment spanning from $261.12 to $361.90. In Malaysia, the majority of citizens spend $582 per month or $6,984 per year. Based on those numbers, an expat in Malaysia can survive for almost 16 years on $110,000.
15. Japan
Cherry blossoms bloom on tree branches, nestled along the Meguro river. Media loves using the aesthetic landscape in depictions of Japan, showcasing just a sliver of its beauty. Take a moment to peer out from the cherry blossoms. What do you see? Mount Fiji unfolding in the distance? Or, do you see layered temple stocked with flared rooftops? Perhaps you see waterfalls racing down craggy rock, framing the backdrop.
The cost of living in Japan with rent is 63.5% lower than prices in the US. The rent prices sit at a 178.4% higher rate than rental prices in the US. Therefore, a one-bedroom place in the forefront of a Japanese city costs $602.3, and a bedroom placed in a quieter area costs $395.62 on average. Monthly, expats should budget $1,071.24 and $12,854.88 a year to sustain the average cost of living. Running on the $110,000 retirement fund, retired Expats can expect to live out their retirement dreams for 8.5 years.
16. Georgia
Begin your ideal retirement in the underrated Eastern European country of Georgia. Fortresses creep up into the line of sight, accompanied by strangely shaped man-made structures like wavy steel Peace Bridge or the Tetris-esque Writer’s House of Georgia. The European country houses The Great Caucasus, Europe’s highest mountain range, accenting secret mountain villages within the snow-capped peaks. Leaning into Georgia’s rich history, The Ancient Great Silk Road remains alive in the Mogao caves. The trade route allowed people to move their goods from the east to the west through wisps of winding granite roads.
Georgia’s cost of living is 133.2% lower than in the US, and rent prices are 216% higher in the US compared to Georgia’s living prices. A one-bedroom in Georgia is listed at $581.79 in an urban area, and a one-bedroom in a suburban area is listed at $400.51. To further highlight the discrepancy between the two locations, let’s examine food prices. A meal for one at a casual restaurant in the US costs $20. The exact same meal in Georgia costs a customer $9.11. A pound of cheese in Georgia costs $3.70 vs. $5.84 in the US. An expat should budget $968 a month, or $11,616, to meet the average cost of living in this country. We find, based on those numbers, that $110,000 divvies up into 9.5 years of retirement.
Final Thoughts:
$110,000 does not sound like a lot, and in reality, it isn’t a lot of money. The good news is that if you are not retired now, then you have time to increase the amount of money you will need. The other thing is that this article does not count any Social Security payments you may have. Each payment is different and can help you survive a bit longer in these destinations.
If you are looking to have more money in retirement, then it is time to start investing it. Investing your money in a simple index fund or ETF that tracks the US market or S&P 500 could help you get anywhere between 7-10% annually, averaged throughout the years. That means investing just $10 a day for 30 years at 8% can bring in over $400,000, but if you were to make that $15 a day instead, you could end up with $400,000 in 25 years. That is the power of compounding interest. If you want a better retirement, start investing today.