10 best places to retire in the world on a budget.
Would you like to retire one day to a warmer climate during the winter months?
Today, we have a special topic that resonates with many of us – finding the ideal place to retire comfortably on a budget one day.
Whether you're from the UK, the US or anywhere else in the world, this post is for you.
We'll be exploring 10 amazing locations, considering factors such as:
- cost of living,
- weather,
- healthcare,
- housing,
- safety, and
- overall quality of life.
This is after we asked our audience in a poll what most important to them if they retired outside the UK:
We’ll be counting down from Number 10 to Number 1, so make sure you read on and don't miss number 1 on the list as it really surprised us.
Need to plan for a comfortable retirement? 😀
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10 Best Places To Retire In The World
To get this topic going, jump into the comments right now and tell us, where in the world you would like to retire.
Here are some assumptions we made for this post:
For cost of living numbers, we’ll use London as a base and for all our locations, we’ll work out the cost of living relative to London.
We will assume that when you are retired, for easy access to various amenities, you will be living without children in a 1-bedroom apartment inside the Centre for all locations we’ll look at to keep things reasonable.
Here is the estimated cost of living in London at the moment according to Numbeo.
These numbers will change in the future due to inflation.
- A single person's estimated monthly costs are £1,086.7 ($1,369.24) without rent.
- An apartment (1 bedroom) in City Centre costs £2,210.64 ($2,785.41) per month
- This brings the estimated total cost to £3,297.34 ($4,154.65)
For a couple, you’ll have a bit more in terms of costs but not too much more as there will be many savings due to shared costs.
Here are the top 10 best places to retire in the world:
Location 10: Algarve, Portugal
The Algarve is a great place to retire with more than 300 days of sunshine.
It has beautiful beaches and a laid-back culture that makes it a popular place to move to.
The cost of living in the Algarve is also affordable, particularly when it comes to food and drink.
Portimão and Faro are the two largest cities on the Algarve.
Faro is the prettier of the two with more to offer Tourists.
In terms of cost of living:
- An apartment (1 bedroom) in City Centre on average would cost around £854 ($1076) but it could be higher or lower.
- Overall, it is possible to live in the Algarve for between £900 ($1,134) – £1,200 ($1,512) per month for a single person.
- It will be a bit more for a couple.
Here is how the cost of living in the Algarve compares to London:
In terms of Quality of Life (higher is better) here is the ideal for all locations:
- Purchasing Power Index (higher is better)
- Pollution Index (lower is better)
- House Price to Income Ratio (lower is better)
- Cost of Living Index (lower is better)
- Safety Index (higher is better)
- Health Care Index (higher is better)
- Traffic Commute Time Index (lower is better)
- Climate Index (higher is better)
Now, here is the Quality of Life Index for Algarve compared to London:
Here is what the weather looks like throughout the year:
What we think of Algarve, Portugal:
- We loved it when we visited and the people were nice.
- The weather is decent in those important Winter months and the beaches are stunning.
- Overall, we can see ourselves living here.
Location 9: Accra, Ghana
Accra, Ghana, offers retirees a vibrant cultural experience, affordability, and a tropical climate.
With a rich history and diverse traditions, the city's low cost of living and developing infrastructure provide a comfortable retirement.
The multicultural environment, English language, and stunning landscapes make Accra an increasingly popular choice for a fulfilling retirement in West Africa.
Here is what the cost of living looks like in Accra, Ghana:
- A single person's estimated monthly costs are £396.1 ($499) without rent.
- An apartment (1 bedroom) in City Centre is £342.04 per month
- The total cost of living in Accra for a single person is £738.14 ($930) per month. It will be a bit more for a couple.
Here is how the cost of living in Accra compares to London:
Now, here is the Quality of Life index for Ghana
Here is what the weather looks like throughout the year in Accra, Ghana:
What we think of Accra, Ghana:
- Having been to Accra, Ghana ourselves, the key observation is that the safety, climate, culture and people are the biggest attractions.
- It is cheaper but getting more expensive as it gains global attention.
- The point on pollution above is important though because this points to potential future health issues. However, this pollution is not everywhere.
Location 8: Chiang Mai, Thailand
Chiang Mai, Thailand, stands out as an alluring retirement destination with its rich cultural tapestry, affordability, and pleasant climate.
Retirees can immerse themselves in Thai traditions, benefit from a low cost of living, and enjoy the city's vibrant expatriate community.
The combination of cultural charm, economic advantages, and a welcoming atmosphere makes Chiang Mai an increasingly popular choice for a fulfilling retirement in Southeast Asia.
Here is the summary of the cost of living in Chiang Mai, Thailand:
- A single person's estimated monthly costs are £403.7 ($508.67) without rent.
- An apartment (1 bedroom) in City Centre is £311.47 ($392.45) per month
- The total cost of living in Chiang Mai for a single person is £715 ($901) per month. It will be a bit more for a couple.
Here is the Quality of Life Index for Chiang Mai vs London:
Also, here is what the weather looks like throughout the year:
What we think of Chiang Mai, Thailand:
- Our family members have visited and enjoyed it.
- It seems pretty out of this world from what we're used to already.
- I think you'd need to be pretty open-minded to move and live here as there will be a huge cultural difference.
Location 7: Medellin, Colombia
Medellin, Colombia, stands as a dynamic and alluring retirement destination, celebrated for its pleasant climate, innovative urban transformation, and warm hospitality.
Nestled in a picturesque valley surrounded by lush mountains, Medellin offers retirees a comfortable and temperate environment.
The city's commitment to sustainability and social development is evident through its efficient metro system, cable cars, and vibrant public spaces.
Retirees can explore the cultural richness in the city's museums, enjoy lively street art, and savour the Colombian coffee culture.
With its resilient spirit and a burgeoning expatriate community, Medellin provides a unique and culturally vibrant setting for a fulfilling retirement experience in South America.
Here is the cost of living in Medellin, Colombia:
- A single person's estimated monthly costs are £430.0 ($542) without rent.
- An apartment (1 bedroom) in City Centre costs £357.26 ($450)
- This brings the total cost of living for a single person to £787.26 ($992). It will be a bit more for a couple.
Now, here is how the cost of living in Medellin compares to London:
Let's look at what the weather in Medellin looks like:
What we think of Medellin, Colombia:
- We spent 10 days in Bogota, Colombia and it was very safe and friendly and we were received well.
- It's likely to be the same as Medellin – very sunny, mountainous and cheap.
- Overall, although it is far from the UK, the cheap cost of living, food, weather and culture make it an attractive option although far from perfect.
- Oh, don't worry about the Medellin Cartel either. It was disbanded in the 90s.
Location 6: St George’s, Grenada
St. George's, Grenada, is an enchanting retirement destination boasting a blend of Caribbean charm, affordability, and a tropical climate.
Retirees can embrace the island's rich culture, benefit from a relatively low cost of living, and enjoy the stunning coastal landscapes.
With its welcoming community and relaxed atmosphere, St. George's offers an appealing option for a serene and fulfilling retirement in the Caribbean.
In terms of cost of living:
- A single person's estimated monthly costs are £762.3 ($960) without rent.
- An apartment (1 bedroom) in City Centre will cost around £616.56 ($777) per month
- This brings the total cost of living for a single person to £1,378.86 ($1,737). It will be a bit more for a couple.
In terms of quality of life in St Georges, Grenada compared to London:
It is clear that the only metric that's holding Grenada back relative to London is the property price to income ratio.
Here is what the weather looks like:
What we think of St Georges, Grenada:
- We visited in February 2014 and absolutely loved it. It's a hidden gem.
- Grenada is not as touristy as the other Caribbean islands.
- It is calmer, the people are friendly, but the cost of living is higher than a lot of other destinations we've looked at.
Location 5: Kigali, Rwanda
Kigali, Rwanda, emerges as a compelling retirement destination, characterised by its remarkable economic growth, political stability, and captivating landscapes.
Nestled in the heart of East Africa, Kigali boasts a temperate climate, making it an inviting setting for retirees.
The city's clean and organised urban design, vibrant markets, and friendly locals contribute to a welcoming atmosphere.
Retirees can engage in Rwanda's rich cultural heritage, explore the lush hills surrounding the city, and appreciate the nation's commitment to environmental sustainability.
With affordable living costs, a focus on security, and a unique blend of traditional and modern influences, Kigali offers a distinctive and promising retirement experience in the heart of Africa.
In terms of cost of living:
- A single person's estimated monthly costs are £350.4 ($441.5) without rent.
- An apartment (1 bedroom) in City Centre costs around £373.70 ($471) per month on average.
- This brings the total cost of living for a single person to £724.1 ($912.4) per month. It will be a bit more for a couple.
Here is how the cost of living in Kigali, Rwanda compares to London:
Now, here is the Quality of Life Index for Kigali – please look at the categories individually (not the total for this one):
Although the property price-to-income ratio is exceptionally high locally, your £ or $ may give you an advantage.
Here is what the weather looks like:
What we think of Kigali, Rwanda:
- When I think of Rwanda, I think of Hotel Rwanda and the UK's not-so-desirable immigration policy.
- However, Rwanda is an African nation to be proud of. One of order and inspiring progress.
- Our research shows that Kigali is very safe, clean, welcoming, warm and affordable. It is a big contender for us.
Location 4: Penang, Malaysia
Penang, Malaysia, emerges as an enticing retirement haven, boasting a harmonious fusion of diverse cultures, affordability, and a tropical setting.
Renowned for its UNESCO-listed George Town, retirees can explore the city's vibrant street art and savour a culinary tapestry reflecting Malay, Chinese, and Indian influences.
The city's strategic location in the Strait of Malacca, coupled with its historical charm, provides retirees with a unique blend of old-world charm and modern amenities, making Penang a culturally rich and captivating choice for a fulfilling retirement in Southeast Asia.
In terms of cost of living:
- A single person's estimated monthly costs are £397.9 (£501.35) without rent.
- An apartment (1 bedroom) in City Centre will cost around £329.27 ($414.88) per month
- This brings the total cost of living for a single person to £727.17 ($916.23) per month. It will be a bit more for a couple.
Here is how the cost of living in Penang compares to London:
Here is the quality of life summary and comparison to London:
It's amazing to see how much more quality of life Penang offers compared to London.
Here is what the weather looks like:
Here is what we think of Penang, Malaysia:
- We've been to Kuala Lumpur, Malaysia, and the initial treatment we received as people with Nigerian heritage by the taxi driver was not too warm.
- However, this does not mean that Penang is not friendly. Have you been?
- Overall, Penang appears to offer a much better quality of life than London, however, we'd say you should check the local attitudes to people from other ethnicities.
Location 3: San José, Costa Rica
San José, Costa Rica, emerges as an enticing retirement destination, celebrated for its harmonious blend of tropical beauty, a laid-back Pura Vida lifestyle, and a stable economic environment.
Nestled in the heart of Central America, San José offers retirees diverse climates, from the sun-kissed beaches of the Pacific and Caribbean coasts to the temperate highlands.
The country's commitment to conservation is evident in its lush rainforests, national parks, and abundant biodiversity.
Retirees can immerse themselves in Costa Rica's welcoming culture, enjoy a wealth of outdoor activities, and access a reputable healthcare system.
With moderate living costs, diverse housing options, and a reputation for safety, San José provides a unique and appealing setting for a fulfilling retirement experience in the midst of nature's wonders.
Here's what the cost of living looks like in San José:
- A single person's estimated monthly costs are £678.4 ($855) without rent.
- An apartment (1 bedroom) in City Centre costs around £516.33 ($651) per month
- This brings the total cost of living for a single person to £1,505.36 ($1897) per month. It will be a bit more for a couple.
The Quality of Life Index for San Jose (Hose) compared to London:
Here is what we think of San José, Costa Rica:
- It seems like a dream location but the traffic commute seems to be reducing the overall quality of life score.
- Interestingly, the pollution score is lower than in London, however, the overall cost of living is much higher relative to other locations.
- The biggest attraction for us is the laid-back Pura Vida lifestyle and the tropical beauty.
Location 2: Valletta, Malta
Valletta, Malta, beckons retirees with its historic charm, Mediterranean allure, and a unique blend of cultures.
As a UNESCO World Heritage site, the city showcases Baroque architecture, charming streets, and a rich tapestry of history.
Retirees can savour the island's diverse cuisine, explore ancient temples, and enjoy the mild Mediterranean climate.
Valletta's compact size fosters a sense of community, while its residency programs offer expatriates ease of integration.
With English widely spoken and a welcoming atmosphere, Valletta provides retirees a distinctively cultural and picturesque haven for a fulfilling retirement in the heart of the Mediterranean.
Here is what the cost of living looks like in Valetta, Malta:
- A single person's estimated monthly costs are £786.0 ($990) without rent.
- An apartment (1 bedroom) in City Centre costs around £835.16 ($1,052) a month
- This brings the total cost of living for a single person to £1,621.16 ($2,043) per month. It will be a bit more for a couple.
Now, here is the Quality of Life Index for Valletta:
And the weather:
Here is what we think of Valetta, Malta:
- This location will have less geopolitical risk and future risk of wars and unrest.
- The weather is great, however, it is not amazing during the cold winter months of December to April.
- The Mediterranean culture is a big attraction. However, you'd need to seriously consider the visa issues post Brexit for this location and others in Europe.
Location 1: Valencia, Spain
Valencia, Spain, emerges as a captivating retirement destination, blending historic elegance, a vibrant cultural scene, and a Mediterranean climate.
The city boasts stunning architecture, including the futuristic City of Arts and Sciences, complemented by a plethora of museums and festivals.
Retirees can indulge in Valencia's renowned gastronomy, highlighted by paella and fresh seafood.
With its moderate cost of living, beautiful beaches, and well-connected public transportation, Valencia offers a laid-back yet dynamic lifestyle.
The city's welcoming locals and diverse expatriate community make it an appealing choice for retirees seeking a harmonious blend of culture, history, and coastal charm in Spain.
Here is what the cost of living looks like in Valencia:
- A single person's estimated monthly costs are £556.8 ($701.57) without rent.
- An apartment (1 bedroom) in City Centre cost around £819.52 ($1,032.59) per month on average
- This brings the total cost of living for a single person to £1,376.32 ($1,734) per month. It will be a bit more for a couple.
This next bit was a shock! The quality of life metrics for Valencia, Spain are unbelievable!
This score of 200.17 towers over London's score of 129.05!
The weather also does not disappoint:
Here is what we think of Valencia, Spain:
- Valencia has one of the highest quality of life scores in the world for a reason.
- Mediterranean climate, lower cost of living, proximity to the UK (with cheap flights), safety and quality healthcare to name a few.
- The only issue we see is the potential visa issues with Brexit.
- Plus, although English is spoken by some, you'd have to learn Spanish to really fit in.
Cost of Living Summary For The Best Places To Retire In The World
Conclusion
Did Valencia surprise you?
Doing this research has certainly opened our eyes as this is a topic we've pondered for years as life in the UK seems to get worse overall.
We really enjoyed doing a deep dive into these locations and feel confident that even at modest budgets, one can have a comfortable retirement around the world.
There are also so many other locations that could have made the list, so we'd happily explore a part 2 if you tell us in the comments.
Where in the world do you think you’ll love to retire? Which of the 10 locations most resonated with you and why? Comment below and let us know 🙂
Creating that option to retire comfortably starts with building some wealth.
👉🏽Read our bestselling book, Financial Joy, a 10-week plan to help you banish debt, grow your money and unlock Financial Freedom.
Here is what to read next about the best places to retire in the world:
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Here is what to watch next about the best places to retire in the world:
Nick says
I was in Chiang Mai last April. The air pollution was terrible and could pose serious health problems for some people. Apparently this only lasts for a few months starting in January or February due to the dry season and the burning of fields. Hard pass for me even though I really liked the food, people and culture.
My son lived in Valencia before and during the start of the pandemic and we really enjoyed our visit in 2018. Valencia surprised us then but your ranking doesn’t surprise me now. Definitely my top choice from your list.
Portugal is delightful. The country – especially Lisbon – has become much pricier since our first visit in 2014. The Algarve is pleasant but I don’t know about spending the summer there.
Some of your other suggestions – Malaysia, Grenada, Malta, Rwanda – look interesting.
Costa Rica seemed too expensive to me based on a 2021 trip. Nice Pura Vida vibe but perhaps Panama is a better option.
By all means prepare a Part II. Mexico, Morocco, Vietnam, Indonesia?
The Humble Penny says
Hi Nick, very insightful. Thank you for sharing. Really interesting feedback on Chiang Mai! Yeah, pollution has the same silent damaging effect as inflation. It’s a big factor for sure. We’ll do a part 2.
Andrew says
It would be really good to include information on Visa’s and duration of stays in this breakdown or maybe in a part 2
The Humble Penny says
Great suggestion, Andrew. We’ll explore this and include it.
Matt says
This is a great article! Surprised by number 1, is there a website we can choose another city or country to do our own research?
Keep up the great work!
Thanks
Matt
The Humble Penny says
Hi Matt, thank you :). We used Numbeo.com but then sense checked the data too.
Shuja says
This is a very intersting list, thanks Humble Penny for this. Did you look at any smaller towns in India? It would take time to get used to the culture, but almost everyone speaks English
The Humble Penny says
Hi Shuja, thank you for sharing. It’s interesting you mention India. My brother visited 2 months ago and was meant to stay there for a month and had to leave in 3 days due to racism. It was very sad to see. People did not want to speak to him because he is Black.
DC says
Bogota and Medellin are 2 different cities! Would research deeper on that one, what about Cartagena in Colombia, been there as well and you get the Caribbean on topmof it, lovely!
Part 2, Brasil!! Although it’s huge! And from experience, north, east south, totally different, looking forward what you come up with!
The Humble Penny says
Thank you for sharing, DC! Yes, I’m pretty sure Bogota and Medellin are different but it was the only comparison that I personally had from real life. Interesting that you mentioned Brasil. I was there (Rio and Sao Paulo) in 2014 and enjoyed it but I always felt unsafe and watched my back a lot. However, my brother has been and his wife is from Brasil. He absolutely loved it and visited some of the non-touristy locations.
Yes to part 2!
YA says
Interesting, thanks for these locations. As a Nigerian, Ghana or Ruwanda definitely appeals to me close to home. Maybe there are places in Nigeria that would make the list (😃 😊 😀).We went to Portugal Madiera last year. It was lovely, but compared to living in Dartford, Kent, I really didn’t think it was that cheap in my opinion. Perhaps it was because we visited tourists areas. Other parts of Portugal could be cheaper. I look forward to your next list.
The Humble Penny says
Hi Yomi, thank you for sharing :). Part 2 is loading…