If your retirement income is making it difficult for you to live where you live, maybe it's time to go abroad as your income can give you a quality lifestyle. Places with lower living expenses generally have a lower average wage and this means that the cost of living will be lower.
But you got your Social Security, your pension, and maybe some savings that you can use to make an income. This income can pay in a low-cost living country for a fairly good lifestyle there.
Where is the cheapest to live?
You will generally find a lower cost of living in
* Eastern Europe
* Central and South America, and
* Asia
Living expenses vary in these areas but the further away you are from the tourist spots, the cheaper things you will get. However, Bulgaria, Romania and Croatia in Eastern Europe are very inexpensive. India and the Philippines in Asia are very cheap like Nicaragua and Ecuador in the Americas Retire in Asia.
A rough estimate of the monthly cost of living in Cuenca, Ecuador is:
Accommodation (rent a luxury two-bedroom apartment): $500
Utilities (including phone, internet, and cable TV): $150
Maid (twice a week): $60
Grocery: $275
Maintenance and fuel for one car: $140
Clothes: $70
Entertainment (two people eat out eight times a month at top restaurants or other entertainment): $200
Medicare (four $30 doctor visits per year for two people, divided over 12 months): $20
Total per month: $1,415;
This translates to an income of about $17,000 per year or $47 per day.
Panama, Argentina, and Brazil cost a bit more but can offer you more connection to your American lifestyle. But the world is developing rapidly. You really have to shop around for what's best for your circumstances.
* Where do you start and how do you compare?
Use the Internet to find out about the cost of living in all the countries that interest you. A new, free site at Numbeo.com gives you plenty of indicators of living expenses - all the way to rent, electricity, meals, etc.
The indexes on this site are related to New York City which each index is set at 100 (%). Another city with a rent index of 120 means that rents are on average 20% more expensive than New York City. The rental index of 70 is 30% less expensive than New York City.
The indexes they tabulate for each country are:
* Consumer Price Index (CPI)
*Rental Index
* Grocery Catalog
* Catalog of restaurants
* Consumer price index plus rent
* Local Purchasing Power If the local purchasing power is 40, this means that residents of that city who earn an average salary can buy goods and services 60% less than New York City residents at an average salary.
International Living at internationalliving.com also tabulates quality indexes of cities around the world to create a global retirement index for each country. They created this index from weighting the scores of eight indexes for each city.
The eight indexes are based on a score from 0 to 100 where 100 is the best score for the value of your money. These indicators and their weight in the Global Retirement Index are:
*Real estate weighted 15%
* Leisure, leisure and culture weight 10%
* Cost of living, 20%
* Safety and stability weight, 5%
* Healthcare weight, 20%
* Climate weight, 5%
* Special Benefits: This category takes into account government provisions that make moving to and living in each country easier and more expensive for foreigners. weight, 20%
* infrastructure. weight, 5%
Under this scheme, in 2009, Ecuador, Mexico, Panama and Uruguay took the highest place - in the upper 70s, the United States took only 62nd place.
What to consider and compare when searching for a country - and a locality there - that's right for you
Think of a country that gives you
* Reasonable access to family and enjoyment of fun such as museums, skiing, golf, etc.
* Acceptable weather
* A sense of community that you can feel far from you
* What specialized health care you should get?
Prepare yourself and be adaptable
The more you integrate into your new country, the better deal you will get to live. Although English is the common language in the world, you should try to learn some local languages. The locals appreciate when you do. With a few words under your belt, you'll be able to shop outside the traps of tourists, like the locals, at heavily discounted prices.
Be prepared to learn and adapt. You may have to leave some of your old habits behind. Look beyond the obstacles you face. Being friendly, positive, and adaptable will make you friends and enhance your life on the outside.
