Top 10 Cheapest Retirement Locations in the World

The cheapest retirement locations in the world do not necessarily have to be low in terms of quality of living. If you make your choices carefully, it is possible to have a great retired life in a beautiful place that has a low cost of living at the same time.

Top 5 Cheapest Retirement  Destinations Close to the U.S.

If you prefer to stay close to the United States after retirement, with affordable costs of travel back home, consider these options.


This is a tiny country located in South America, renowned for its warm climate, scenic beauty and pristine beaches. Uruguay’s capital city Montevideo consistently ranks among the low cost cities of the world that offer a great quality of life.


Mexico is an ideal retirement haven for the American retirees. There is a substantial American expat population in Mexico. Healthcare facilities are good near all the major cities, and cost of healthcare is highly affordable.

Costa Rica

Costa Rica is one of the best places to consider if you are looking for the cheapest retirement locations in the world. For the retirees, their income as well as any capital gain benefits are tax free in the country. So particularly for those who have a substantial retirement income, this is a good place to consider from a tax saving viewpoint.


Argentina offers European charm, and the cost of living is cheap in the interior or rural regions. Another advantage for an American retiree is that a majority of people can converse in English. Situation of law and order is better compared to most other countries in South America.


One of the spectacular tourism hotspots in the Caribbean, Antigua offers hundreds of pristine beaches. Cost of living is cheaper than many Caribbean islands, and flying back home is quite affordable too.

Top 5 Cheapest Retirement Locations Distant from the U.S.

If you do not mind living in a region that is located at a long distance from the United States, you can explore a number of exotic options where the cost of living is affordable.


The interior regions in Italy, particularly in the South, offer a fairly low cost of living compared to an average American city. The history, cultural heritage, art and architecture, and great weather make it a wonderful retirement option for anyone. If you love Italian food, and are willing to learn the local language even informally, you can savor the richness of this place.


New South Wales and Victoria province in Australia are fairly affordable, and offer a great quality of life at the same time. Excellent medical facilities, entertainment opportunities and good law and order make it a great choice among the cheapest retirement locations in the world.


Cyprus is a tiny Mediterranean island located near Turkey. It is one of the finest retirement places in the world because of its warm summers, moderate winters and its breathtaking scenic beauty. Cost of living is substantially cheaper than the average American city.

Canary Islands

In the list of the cheapest retirement locations in the world, the Canary Islands must rank high. This exotic group of islands is just a ferry ride away from Spain. Climate remains mild all the year round, and the cost of living is among the lowest you can expect at any good retirement place in the world.


Among the most exotic and culturally enriched countries in the world is India. Prime cities in the country are getting expensive to live in, but the smaller regions are still among the most affordable places to retire in the world. Consider Goa, which is renowned for its wonderful beaches and moderate climate throughout the year. Cost of living is cheap and the majority of people can converse in English.


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