When deciding whether to retire abroad, it’s important to consider how far your finances will stretch. Recently, NetCredit conducted a study into how much it costs fpr Americans to retire comfortably in various countries.
Do you have $600k put aside for your retirement? If you’re depending on your savings to keep you in your present lifestyle when you quit work, that’s how much you might need.
Just 14% of Americans in their 40s and 50s have more than half a mil put away – and if you’re in a similar position, you could enjoy a fuller retirement in a more affordable country.
There are many good reasons your retirement fund could be low. Sadly, the lockdown has forced nearly one-third of Americans to slam the breaks on their retirement savings.
In fact, around 9% have withdrawn from their savings just to get by. Even if your savings remain untouched, you might have underestimated what you’ll need to get by or lack the income to save comfortably.
Whether you’re on track to save what you need or not, retiring abroad is a handsome option.
Retirement is an opportunity to learn new things, gain new experiences and meet new people. And many places are much cheaper to live in retirement than the US.
For our latest study, we figured out that to retire at the average age in America (64) with the average life expectancy (78.7) you’d need around $601,489 in the bank.
We applied the same calculations to every country on Earth to see how much a 64 year old would need to maintain the same quality of life: going out once a week, takeout coffee once a week, no smoking, moderate drinking, no taxis or rideshares and two vacations, among other controls.
The result is a series of maps of the most affordable places to comfortably retire around the world.
source: Netcredit