As millions of people reach retirement age, many continue to feel the effects of the financial crisis. For many, stretching their dollars, pounds or euros has become a necessity, as retirement plans and savings are woefully short to maintain their standard of living. Seniors are increasingly looking for low-cost retirement destinations abroad. The latest cost of living data reveals a number of exotic destinations where seniors can still enjoy the good life for less. Here are five cities you may want to consider.
Quito, Ecuador
Ecuador is ranked 193 out of 219 countries, while its capital city, Quito, is ranked 598 out of 780 major cities and regions included in the latest cost of living rankings. While at the bottom of the list based on cost of living, Ecuador tops several recent lists as the best place in the world to retire. Being over 9,000 feet high and close to the equator, Quito enjoys a constant cool climate with average highs near 70F and lows near 50F throughout the year.
Recent changes to the state-sponsored health care system, according to Huffingtonpost.com, extended care to all legal residents, including those over the age of 60, as well as those with pre-existing conditions. Combine good, affordable healthcare with what has been called the most beautiful big city in South America and you have a winning combination.
Nashville, Tennessee, United States
While Bankrate.com recently awarded Tennessee the title of best US state for retirement, Music City, as Nashville is often known, has become the state’s newest booming city. Retirees are coming to Nashville in record numbers due to low housing costs, no income taxes, and high quality of life.
Nashville, Tennessee is ranked 727 out of 780 on the list of the most expensive locations in the world.
Bali, Indonesia
Although still considered an inexpensive vacation and retirement destination, the island of Bali is becoming increasingly popular and gradually more expensive. Bali was ranked 597, up 67 places from last year’s ranking.
Sofia, Bulgaria
If spending your golden years exploring the capitals of Europe sounds like your retirement idea, Sofia, Bulgaria offers a great retirement option. Its low cost of living, excellent infrastructure, EU membership, bustling cultural and entertainment scene, plus easy low-cost connections to Europe make this a perfect base without the price tag of a city like Rome, Paris, or Zurich.
Bulgaria is ranked 211 out of 219 countries in the cost of living ranking, while Sofia is ranked 759 out of 780 locations.
Chandigarh, India
With the exception of Westerners who have traveled to India as medical tourists, Chandigarh, dubbed the “pensioners’ paradise”, is virtually unknown outside of India. That may be about to change. Like the characters in the 2012 British romantic comedy The Best Exotic Marigold Hotel, many older people see India as a potential retirement destination. Created from a mostly arid landscape beginning in the 1960s, Chandigarh is the administrative center for the states of Haryana and Punjab. It has unusually wide streets, well-organized public transportation, and the highest per capita income of any city in India.
Overall, India ranks as the 206 most expensive country on the list.
There are many considerations beyond cost of living that you need to take into account before choosing a place abroad to retire. Things like health care, access to western-style products, and proximity to family and friends will be important factors. The bottom line is that this is a personal choice, but an increasing number of people are happily choosing to broaden their horizons for a better quality of life in retirement.