When planning for retirement, you’ll want to take a look at these 20 places where $150k is more than enough to retire.
With Social Security retirement benefits sitting at an average of $1614 per month as of January 2022 (as reported by the Center on Budget and Policy Priorities), it might be smart to look into places outside of the United States that would accommodate a comfortable retirement on a lower income.
Can You Retire With $150,000?
There is no simple answer to how much you will need in retirement. You save as best as you can and try to overplan for retirement because the rate of inflation and deflation is just unknown.
In addition, you have no idea how long you’ll live after you retire, also known as your life expectancy.
If you have $150,000 saved for retirement in addition to your social security income, you will have to find ways to live within your means and budget your money well.
It will be tough to live in the United States on that budget, but not impossible. However $150k will go much further in other countries.
Consider Reading: 10 Things You Need to Do Before Retirement
How Much Money Does the Average American Retire With?
The average American retired with $98,800 in 2021, which Due points out was a 13% increase from the previous year.
Many Americans, 40% to be exact, think that they will need $1 million to carry them through retirement.
Yet according to SpendMeNot, only 1 in 6 individuals have $1 million for retirement. In addition, almost 70% of working individuals anticipate having to work to live in retirement.
What is a Good Monthly Retirement Income?
Most financial resources suggest an average of 80 percent of your income at the time of retirement. Think of it as basically your salary after taxes and retirement contributions are taken out.
This will provide a comfortable retirement without having to guess at life expectancy or healthcare expenses.
How to Use a Retirement Calculator
A retirement calculator is a tool used to determine your retirement income based on multi-factor combinations. You’ll need to enter;
- Your current age
- Retirement age
- Income (total household if both spouses work)
- Current retirement savings if applicable
- Rates of return on investments both pre-retirement and post retirement
- Life expectancy
- Expected rate of inflation
- Expected raise in social security
When all of these factors are put into the calculator, you’ll get a balance of what you’ll have when you retire if your numbers are accurate.
Bankrate has a retirement calculator that will give you a good idea of what to expect for your retirement.
20 Places Where $150K is More Than Enough to Retire
When looking outside of the United States to retire, these are 20 places where $150K is more than enough to retire and live comfortably:
- Costa Rica
- Czech Republic
Top Countries Where You Can Retire on 150K
The top countries to retire on $150K are not surprising to most travelers.
At the top of the list is Costa Rica.
This super affordable country offers excellent beaches and is extremely safe with many sought-after amenities such as beautiful tourist spots, markets, and medical facilities for both insured and uninsured.
For the closest to home, Mexico is next on the list for a comfy retirement on $150K.
It offers beautiful beaches, temperate weather, and historical sites throughout. In addition, Americans will be familiar with chain stores and cafes.
Panama has been a favorite of retirees for countless years. So many tourists comment on the cleanliness of the country and friendliness of the natives.
The mild weather and beautiful landscape in combination with the low cost of living create a paradise for those looking to retire.
Peaceful and historically rich Mediterranean country of Malta is a top-ranking retirement place.
Their visa policies are lenient and easy to work with so for those who want long term residency, they should have no problem.
Another perk to this island is that English is one of their main languages, making it very easy for Americans to make the move.
Malaysia is another low-cost-of-living option for retirees. A city apartment for two runs about $600 per month while the coastal one-bedroom apartment is only about $225 per month.
The private medical facilities offer excellent care for those concerned about health issues. As lovely as Malaysia may sound, there has been an uprising in violence in the country and Americans are advised to take caution.
Where is the Safest and Cheapest Place to Retire?
More than being affordable, it is important to find a retirement spot that is safe. Just as Malaysia has a warning label, so does Mexico and quite a few other countries on the list.
On the other hand, there are several places that are notably safe to land without breaking the bank.
The first is Portugal with a low cost of living, (roughly one-third the cost of American living) but ranked in the top five for safest place to live.
The second safest country that is affordable is Slovenia. It is ranked in the top ten for safest in the world and is much less expensive than the United States.
Also ranked in the top ten safest countries, Czech Republic is a good choice for cheap and safe retirement. It is the most affordable out of these three.
Read Also: 25 Best Vacations on a Budget
In Conclusion: 20 Places Where $150K is Enough to Retire
If you feel as if your retirement funds of $150K will restrict your living situation in the United States, there are plenty other places to find a paradise on your budget.
There is no reason to continue working through retirement if your retirement savings is not fantastic.
Park yourself on the sunny beaches of Costa Rica or enjoy the rich culture of Portugal, rediscover the pyramids of Mexico or find a new favorite brew in Czech Republic.
All of these impressive 20 places where $150K is enough to retire can provide retirees a place to call home for years to come.