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Revealed: These are the most affordable countries for retirement

Photo by Mac McDade

Many people have worked tirelessly for decades in order to have a comfortable retirement but with the current cost of living crisis there has been a surge of interest for people looking to move abroad, with searches for ‘best places to live in retirement’ increasing by +480% over the past 12 months.

With over 100 countries to choose from (all boasting different cultures and lifestyles) finding the perfect location to live out those golden years can cause a headache for millions each year.

But just which country in the world is best suited on a financial front for those about to wrap up their work life?

To help, life insurance brokers Reassured analysed six key factors most people consider when they’re thinking about moving abroad to reveal the most affordable countries for retirement in 2023 using weighted metrics for cost of living, cost of accommodation, cost of transport, annual levels of sunshine, life expectancy, and total population over 65.

Reassured can now reveal the top 10 most affordable countries to retire in:

RankCountryAnnual Sunshine (Hours)Life Expectancy (Years)Cost of Living IndexAccommodation Cost (£)Cost of Transport (£)% Population Over 65Total Score
10Puerto Rico2963.87867438.6248.42226.264

Greece is the most affordable country for retirees

Taking the number one spot is Greece, which is an already popular retirement destination, so there is no surprise that it came out on top. With 2,773 annual hours of sunshine and the third-largest global population over the age of 65, you’ll be relaxing in good company before you know it.

Greece is home to snow-capped mountains, golden beaches, great food and ancient history, giving you more than enough to explore now that you’re living a life of leisure with more money in your back pocket.

Second in the rankings is Portugal, a classic destination for expats and retirees alike, Portugal is home to a wealth of retirement-friendly activities that can be enjoyed all year round. Portugal is ranked 9th for annual sunshine hours, getting 2,806 overall, which makes it one of the sunniest countries in Europe.

Third in the rankings is Malta, blessed with spectacular panoramas of the Mediterranean Sea, Malta is rich in history, culture, and wine production. An added benefit for any retiree is that public transport is cheap at just £23.12 per month, which makes getting around a breeze.

The home of some of the finest cuisine and culture in Europe, Italy ranks as the 4th best retirement hotspot. With a relatively cheap accommodation cost of £450.98 per month. Italy also has the third-highest life expectancy rate at 82 and the second-highest population over 65.

No retirement index would be complete without the mention of Spain when you think of an expat destination, Spain is often the country that springs to mind and for a good reason. So we’re not surprised that it comes in 5th place. With a relatively low cost of living and a high life expectancy, the Spanish golden coast is an incredible destination for those golden years.

If you fancy something more exotic for retirement, Cuba (6th), Japan (8th) and Puerto Rico (10th) are all featured as one of the best affordable retirement destinations.

Phil Jeynes, Director of Corporate Strategy at Reassured comments on the research: “With the current high cost of living in the UK, many Brits are looking to move abroad to retire. Our research identified an array of incredible destinations to choose from to live out those golden years with more money in the pocket to enjoy life in a new country.”

The full report and data can be viewed at: https://www.reassured.co.uk/most-affordable-countries-to-retire-to/