If you’ve ever looked at your monthly retirement income and wondered, “Could this stretch further somewhere else?”, you’re not alone.
As a former financial analyst turned writer, I still think in spreadsheets—especially when it comes to life’s biggest decisions.
But here’s the simple truth I’ve seen again and again: where you live can matter more than almost anything else when it comes to living well on a fixed income.
Prices, health care access, climate, community—those aren’t just numbers. They shape your daily joy.
Before we dive in, a quick word on how I think about “value.” It isn’t just “cheap.”
Value is the sweet spot where four things intersect: affordable housing and groceries, reliable health care, straightforward residency options, and an everyday life that feels good—walkable streets, fresh produce, and friends to share it with.
Purchasing power and price levels differ wildly by country, and that difference can change how far your income actually goes.
Below are seven places that consistently deliver a lot of life for the money—if you’re living on retirement income and want both comfort and meaning.
Pro tip as you read: The capital and the “Instagram-famous” neighborhoods tend to be pricey. Real value usually sits one or two train stops out, or in smaller regional cities.
1. Portugal: Coastal calm with practical perks
If you crave a slower rhythm, Portugal delivers.
Outside Lisbon and Porto, rents soften, cafés multiply, and markets brim with produce.
Coastal towns like Setúbal, Aveiro, or Lagos—and inland gems like Évora—often give you the same sunshine and culture minus the premium price tag.
I also love the everyday conveniences: reliable public transit, walkable cores, and an easy cadence to life.
Portugal’s health system is well-regarded, and private plans are comparatively affordable.
Pair that with tons of parks and coastal trails and you’ve got a lifestyle that rewards morning walkers and sunset chasers.
A tip from my budgeting brain: run separate line items for “housing” and “local transport.” Portugal’s value really shines when you don’t need a car for daily life.
2. Spain: Market-fresh living at a friendly price
Spain is where many retirees realize they can afford the life they thought was out of reach—especially in Andalusia, Valencia, or Murcia.
Week after week, I hear the same story: “I spend less, but I eat better.”
That’s the magic of Mediterranean markets; produce, legumes, and bread are affordable and abundant, and a plant-forward diet is both delicious and budget-friendly.
The day-to-day can be wonderfully simple: morning coffee, a mid-day shop through the mercado, and a long walk along the promenade.
Spain’s cities are famously walkable. If you’re strategic about location, you can skip owning a car altogether.
Tiny practice that pays off: spend your first month tracking grocery prices by stall.
You’ll quickly find your “regulars” for olive oil, fruit, and bread—your budget (and dinner table) will thank you.
3. Mexico: Big-country choice, small-city budgets
Mexico offers a spectrum of lifestyles. If one place isn’t the right fit, the next region over often is.
For low-key living, look beyond the famous beach hubs to cities like Mérida, Puebla, Querétaro, or the Lake Chapala area.
The value tends to be strongest in neighborhoods a little outside the gloss.
You’ll also find excellent private medical facilities in mid-sized cities, often with shorter wait times.
Many retirees build a hybrid routine: a general practitioner for day-to-day needs, and private specialists when needed.
Add in affordable fresh food (hello, street markets), and your quality-of-life-to-cost ratio climbs fast.
One more practical note: currency swings can affect your budget. Lock in longer leases when exchange rates are favorable to you, or hold a small buffer in pesos for peace of mind.
4. Panama: Dollarized stability and retiree benefits
Panama blends modern infrastructure with an everyday ease that’s hard to beat.
It’s dollarized, which simplifies finances for U.S. retirees, and regional hubs like Coronado, Boquete, and David offer a more relaxed pace than Panama City.
Fresh produce, tropical fruit, and abundant walking routes make it easy to eat well and move more without spending much.
The country is famous for retiree-friendly perks and a strong expat network.
That social web matters—especially in the first year. Shared rides to the market. Dinner groups. Nice neighbors who’ve already navigated local systems.
It’s value you can’t measure until you have it.
5. Malaysia: Urban convenience, island calm
If you love modern conveniences but not modern price tags, Malaysia is compelling.
Kuala Lumpur’s suburbs and Penang (George Town especially) tend to offer excellent value: reliable infrastructure, efficient transit, and a food scene that makes plant-forward eating both joyful and affordable.
I also appreciate the climate variety—tropical, yes, but different coasts stagger monsoon seasons.
That means you can travel domestically to chase sunshine, which is a nice (and inexpensive) perk when family visits. Private health care is high-quality and comparatively affordable, with English widely spoken in many clinics.
One micro-habit I use: set a monthly “curiosity fund.” RM100 or so for trying new hawker stalls, markets, or regional train trips.
Curiosity is the cheapest life upgrade I know.
6. Thailand: Gentle living with world-class care
Thailand’s appeal is simple: relaxed days, warm hospitality, and a cost profile that lets you say “yes” more often.
For retirees, Chiang Mai and Hua Hin are perennial favorites—walkable, friendly, and easier on the wallet than Bangkok’s core.
If you enjoy outdoor life, mornings in the park and evening markets become your natural rhythm.
Private hospitals in major centers are globally regarded, and routine care can be both accessible and pleasant.
It’s one of those countries where a little language learning (hello, thank you, please) goes a long way socially—and value-wise.
Locals often steer you to better, less expensive options once they know you’re trying.
7. Turkey: Mediterranean magic on a budget
If you’re dreaming of sea views without the sticker shock, put Turkey on your list—especially Izmir, Antalya, or smaller Aegean towns.
Fresh vegetables, bread, olives, and herbs are staples here, which naturally nudges your diet in a plant-forward direction (and keeps the grocery bill kind).
Inflation has been a headline in recent years, yet many day-to-day costs remain comparatively modest outside major tourist zones.
The payoff is a high quality of life for the price: long seaside walks, bustling bazaars, and café culture that makes socializing simple and free.
How I pressure-test “value” before I go
This is the checklist I’ve used (and coached others to use) before choosing a new base:
1) Price-level reality check. Don’t just compare exchange rates—compare prices.
Purchasing power parity (PPP) helps you gauge what a basket of goods actually costs across countries. When PPP differs meaningfully from the exchange rate, your income can stretch further (or not) than you expect.
2) Health care plan, in writing. If you’re a U.S. retiree, know that Medicare’s coverage outside the United States is very limited, with only narrow exceptions.
Plan for private insurance or a local health plan that fits your needs and budget—ideally before you arrive.
3) Housing-first budgeting. In retirement, housing is often your single biggest lever. Run the numbers with and without a car, and include utilities, internet, and building fees. Test different neighborhoods; the value swing within the same city can be dramatic.
4) Proximity to joy. What do you want within a 15-minute walk? A farmers’ market? A waterfront path? A bus stop? Make a “joy map,” then hunt for apartments inside that circle. You’ll spend less and live more.
5) Visa and residency due diligence. Rules change. Always check official government sites for updated requirements, income thresholds, and health insurance mandates. If paperwork isn’t your superpower, factor in the cost of a local attorney or relocation service.
6) Community fit. Visit for a month, not a weekend. Join a walking group, volunteer at a market, attend a language exchange. You’re testing daily life, not vacation life.
Why these seven?
You’ll see these countries appear again and again in independent retirement rankings because they tend to hit the practical sweet spots: reasonable housing, quality health care access, a slower (and sunnier) pace, and communities that welcome newcomers.
None are perfect—and every country changes over time—but they consistently offer a lot of life for the money.
If you’re still undecided, here’s a 15-minute exercise I give clients:
Pick two countries from the list above.
For each, find a mid-sized city (not the capital).
Price a 1–2 bedroom apartment, a month of local transit, and a weekly market shop. (Use conservative estimates.)
Add a modest “treat” budget: two café visits and one dinner out per week.
Compare totals to your current spending.
You’ll learn more from that exercise than from ten glossy articles.
A final, practical nudge
I’m at my happiest when I can run in the morning, pick up vegetables at a local market, and end the day with a simple home-cooked meal.
That’s true in my hometown, and it’s true abroad. Most of the countries above make that rhythm easy—and affordable.
If you’re living on retirement income, your most powerful move might be changing your map, not your lifestyle. Start with one scouting trip. Take your spreadsheet. Take your walking shoes.
See how it feels to buy tomatoes from a vendor who remembers your name.
And then—if the numbers and the heart both say “yes”—give yourself permission to live well for less.