How Cheap is it to Live in a Foreign Capital?

“An increasing number of Americans are retiring overseas to capital cities that offer a culture-rich lifestyle, excellent infrastructure and top-class dining and entertainment—and an affordable price tag, according to Internationalliving.com.”

A new report from International Living finds five international capitals, where a couple can retire on less than $37,000 a year. Think Advisor’s recent article, “5 Foreign Cities to Retire on $37K a Year or Less,” reports that by International Living’s calculations, that equates to $63,568 a year, or $5,297 per month, for a couple to retire comfortably in Washington, D.C.

“An urban retirement holds an increasing appeal for baby boomers keen on the idea of staying active and aging in place. In big cities like Washington, D.C., retirees can easily access theater, dance, museums, restaurants, doctors and grocery stores without getting in a car,” Jennifer Stevens, executive editor of International Living, said in a statement.

“However, all that comes with a high price tag — especially for living and housing costs. The median household income in D.C. is $72,935, but experts say you need more like $90,811 to live there comfortably as a working person.”

However, retirees can gain all the same benefits of a cosmopolitan, urban lifestyle in the best-value capital cities overseas—for much less. The International Living report gives us five capital cities in Europe, Latin America, and Southeast Asia, where a retired couple can live very nicely on less than $37,000 a year:

1. Hanoi, Vietnam: Hanoi has one of the lowest costs of living of any major city in Southeast Asia. A couple can live a comfortable lifestyle there on a budget of $905 per month or less, or $10,860 a year.
2. Lisbon, Portugal: Home to half a million people, Lisbon is a spot where retirees can “enjoy a European lifestyle at Latin American prices,” according to the report. A couple can live well here for $3,065 a month, or $36,780 a year. The report claims that Lisbon is one of the most affordable capitals in Western Europe.
3. Panama City, Panama: A couple can rent a two-bedroom apartment in the central city for $1,765 a month, or $21,180 a year. For American expats, Panama is also convenient because the currency is the U.S. dollar.
4. Phnom Penh, Cambodia: This city has plenty to offer expats, like a stunningly low cost of living, bustling markets and a thriving food scene. All this comes with colonial French architecture and temples. According to International Living, a retired couple can enjoy a good life here on $1,837 a month, or $22,044 a year.
5. Quito, Ecuador: Quito is one of the highest capital cities in the world, located in the Andes mountains at 9,350 feet. The report says that it has everything expats would expect to find in any big city, like museums, architecture, art and theater for much less than what it costs in North America. A monthly budget for a couple in Quito would cost $1,650 to $1,825, or a yearly total of $19,800 to $21,900.

Reference: Think Advisor (September 13, 2018) “5 Foreign Cities to Retire on $37K a Year or Less”