Living abroad can stretch your retirement savings and give you a higher quality of life for less.

Retiring early doesn’t have to mean cutting expenses or limiting travel. Many countries offer a lower cost of living, excellent healthcare, and a relaxed lifestyle, making it easier to retire early while still enjoying life to the fullest. Whether you want beachfront living, a historic city, or a peaceful countryside retreat, there are destinations where your savings can go much further than they would in the U.S. or Western Europe.

Let’s explore some of the best and most affordable countries for early retirement and travel.

In this article

Key takeaways

• Countries in Latin America, Eastern Europe, and Southeast Asia offer the best balance of affordability and quality of life.
• Many of these destinations provide retirement visas, tax benefits, and low-cost healthcare.
• A monthly budget of $1,500–$2,500 can provide a comfortable lifestyle in many of these locations.

Best Countries for Affordable Early Retirement

Here’s a look at some of the best destinations where you can retire early and maintain a high quality of life at a lower cost.

1. Portugal

Portugal has become one of the most popular retirement destinations for expats due to its affordable cost of living, warm climate, and excellent healthcare.

• Cities like Lisbon and Porto offer a vibrant culture, while the Algarve region is famous for its relaxed beach lifestyle.
• The D7 Visa allows retirees to live in Portugal if they have passive income (such as Social Security or rental income).
• High-quality public and private healthcare at a fraction of U.S. costs.

Best for: Retirees looking for mild weather, strong expat communities, and a mix of city and coastal living.

2. Mexico

Mexico is a top choice for early retirees because of its proximity to the U.S., low cost of living, and excellent food and culture.

• Cities like Mérida, Puerto Vallarta, and San Miguel de Allende offer affordable yet high-quality living.
• Healthcare costs are 50-70% lower than in the U.S., with many doctors trained in the U.S. or Europe.
• The Temporary Resident Visa allows foreigners to live in Mexico for up to four years with proof of sufficient income.

Best for: People who want affordable coastal living, easy access to the U.S., and a vibrant expat scene.

3. Thailand

Thailand is famous for its low-cost living, tropical climate, and high-quality healthcare.

• Popular retirement destinations include Chiang Mai (for its laid-back atmosphere) and Bangkok (for city life and modern amenities).
• The Retirement Visa (Non-Immigrant O-A Visa) requires proof of retirement income but allows long-term residency.
• Affordable, world-class healthcare, with many hospitals catering to international patients.

Best for: Those looking for a warm climate, affordable luxury, and a strong expat community.

4. Ecuador

Ecuador offers an incredible mix of mountains, beaches, and colonial cities at some of the lowest living costs in Latin America.

• Cities like Cuenca and Quito have a European feel with low rent and high walkability.
• The Pensioner Visa requires only $1,350 in monthly income to qualify.
• One of the few countries that uses the U.S. dollar, making it easier for retirees who don’t want to deal with currency exchange fluctuations.

Best for: Retirees who want low taxes, a mild climate, and a mix of modern and historic living.

5. Colombia

Colombia has transformed into a top retirement destination, offering beautiful scenery, vibrant cities, and affordable high-end living.

• Medellín is one of the most popular choices, with its “eternal spring” weather and strong expat community.
• The Retirement Visa (M-11 Visa) requires a pension or passive income of just $750 per month.
• High-quality healthcare at a fraction of U.S. costs, with several hospitals ranked among the best in Latin America.

Best for: Retirees who want modern city living, mild weather, and affordable healthcare.

6. Hungary

For those looking for an affordable European retirement destination outside the more expensive areas of Spain or Italy, Hungary offers historic charm and low-cost living.

• Budapest is one of the most affordable European capitals, with low rent and rich cultural experiences.
• The Digital Nomad Visa (White Card) allows expats to stay in Hungary with proof of remote income.
• Hungary has some of the lowest taxes in Europe, making it ideal for those with international income sources.

Best for: Retirees looking for affordable European living with a mix of history and modern comforts.

How to Retire Early and Travel More

1. Leverage Geo-Arbitrage

Earning income in U.S. dollars or euros while living in a country with a lower cost of living allows retirees to maintain a high standard of living on a smaller budget.

2. Consider Healthcare Costs

One of the biggest retirement expenses is medical care, so choosing a country with high-quality yet affordable healthcare is essential. Some of the best options include:

• Thailand – World-class private hospitals at a fraction of U.S. prices.
• Portugal – Universal healthcare is available to expats with residency.
• Mexico – Affordable private healthcare with top-tier hospitals.

3. Take Advantage of Retirement Visas

Many countries offer special visas for retirees that require proof of income but do not require employment.

FAQ

What is the cheapest country to retire in?

Ecuador and Colombia offer some of the lowest living costs for retirees, with monthly expenses under $2,000 in many cities.

Do I need to be fluent in another language to retire abroad?

It helps, but many expat-friendly areas in Portugal, Mexico, and Thailand have English-speaking communities.

Can I still collect Social Security if I retire abroad?

Yes, U.S. citizens can receive Social Security payments in most foreign countries. However, tax obligations may vary.

Bottom Line

Retiring early and traveling is possible with the right destination and financial planning. By choosing a country with a low cost of living, affordable healthcare, and favorable visa options, you can stretch your savings and enjoy a fulfilling, adventure-filled retirement. Whether you prefer the beaches of Mexico, the mountains of Ecuador, or the history of Hungary, there’s a perfect place to make your retirement dreams a reality.