12 Best Cities to Retire in Central America
In this article, we will take a look at the 12 best cities to retire in Central America. If you wish to skip our detailed analysis on the financial state of retirees and retiring in Central America, you may go to 5 Best Cities to Retire in Central America.
The Financial State of Retirees
Are you afraid of outliving your assets? 70% of Americans today feel financially stressed, reports CNBC. They are working longer, spending less, increasing their stock exposure, and delaying claim on social security benefits. While these endeavors may be well-intentioned, without planning, they are merely blind attempts. As such, failure to adequately plan is a significant retirement blunder by retirees, leading them to save insufficiently for their golden years.
As a result, millions of Americans today are nearing their golden years financially unprepared. The US Census Bureau data notes that 50% of women, and 47% of men between ages 55 and 66, have no retirement savings at all. While saving for retirement is a must, AARP highlights that nearly 57 million Americans work for employers without a retirement savings plan.
Only 14 US states today have state-facilitated payroll deduction retirement savings or "Work & Save" programs for their employees. Such retirement savings plans are a convenient way for individuals to save for retirement. Savings ensure retirees have additional resources beyond their social security. It must be noted here that average social security benefits are only $1,600 a month, while average monthly expenditures for those 65 or older easily hover around $4,345. The grave disparities between income and expenditure have led many seniors to live below poverty line in the USA. The latest US Census Bureau data highlights that poverty among Americans aged 65 or older has increased from 8.9% in 2020 to 10.3% in 2021.
In order to retire comfortably, corporations such as Morgan Stanley (NYSE:MS), The Charles Schwab Corporation (NYSE:SCHW), and BlackRock, Inc. (NYSE:BLK) can help retirees take the right steps. Retirement solutions at Morgan Stanley (NYSE:MS) help individuals, families, and institutions reach their financial goals. Similarly, The Charles Schwab Corporation (NYSE:SCHW) and BlackRock, Inc. (NYSE:BLK) can help employees open Individual Retirement Accounts, or IRAs, for funding retirement years.
All three corporations, Morgan Stanley (NYSE:MS), The Charles Schwab Corporation (NYSE:SCHW), and BlackRock, Inc. (NYSE:BLK), are also good stocks to invest in, considering the aging baby boomer population being one of the factors for rising demand of financial services.
Retiring in Central and South Americas
Considering the lack of retirement funds and the graying demographics in parts of the USA, many retirees are considering relocation to cheaper areas such as the South. Apart from the South, there are plenty of affordable places to retire on the East Coast. For those looking to move away from the US, another possible option on many retiree’s radars is Central America. Moving to Central America has many advantages for retirees. For starters, the cost of living is lower compared to many Western nations. The climate is pleasant and warm throughout the year too.
Moreover, many countries, such as Panama and Costa Rica, have reputable healthcare systems. The process for obtaining residency is easy, and there are ample opportunities to explore the outdoors. International Living rates Panama as the cheapest and safest place to live in Central America. Retiring in Panama can also help individuals stretch their dollar incomes, with the cost of living as affordable as $1,200 a month.
While Central America is one of the cheapest places for retirement, South America can also be a good place to consider for affordable living. Some of the best places in South America to live include Buenos Aires, Argentina; Lima, Peru; Quito, Ecuador; Rio de Janeiro, Brazil; and Florianopolis, Brazil. However, amidst all these places, Bolivia ranks as South America's cheapest place to retire. Living in Bolivia is as cheap as $20 a day.
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Methodology
In order to compile the list of best cities to retire in Central America, we used 4 (1,2,3,4) sources. We also gathered opinions from expat retirees on the best cities for retirement in Central America on forums such as Reddit and Quora. After gathering the cities recommended, we ranked them based on their monthly cost of living (for the individual) sourced from LivingCost.org, amongst others. Next, cities are ranked in descending order from the highest to the lowest cost of living expenses.
Here are the 12 best cities to retire in Central America:
12. Coronado, Panama
Cost of living: $2,500
Coronado, Panama, is one of the best cities for retirees and expats in Central America. The popular beach town is located on the Western Coast of Panama, 90 minutes away from Panama City. It has pristine beaches, a warm coastal climate, and plentiful beachfront properties. Coronado, Panama, has undergone a remarkable transformation, thanks to a thriving expat community.
Moreover, it has evolved into a sophisticated and upscale beach resort. The city is often regarded as the epicenter of beach life, with affordable properties and developed infrastructures in place.
The cost of living is affordable and costs a maximum of $2,000. A one-bedroom apartment can range between $500-$800, while nicer rentals will range between $1,000-$1,800. Plenty of hospitals and clinics are spread throughout the city, and the quality of medical care is comparable to the United States. Overall, it is one of Panama's safest and cheapest places to retire.
11. Antigua, Guatemala
Cost of living: $1,550
One of the most beautiful cities to retire in Guatemala is Antigua. An ideal year-round climate, picturesque scenery, and affordable living costs make it a desirable retirement destination for expats. Antigua has been fairly successful in preserving its colonial architecture, which grants it a unique allure, along with its cobbled streets and beautiful landscapes.
Antigua, Guatemala, is also considered a safe destination for retirees. Valleys, mountains, and hills surround the beautiful valley. Moreover, even though the city is expensive compared to Guatemala's standards, it is cheaper compared to the United States'. The average cost of living is only $1,550, with retirees affording luxuries far more easily than they could have in the States.
10. Corozal, Belize
Cost of living: $1,500
Retirees wishing to escape the hustle and bustle of big cities can choose to retire in Corozal, Belize. The city offers a laid-back lifestyle, an affordable cost of living, and a wide array of outdoor activities to enjoy. Residents like to spend time on the Corozal Bay, engaged in activities such as swimming, fishing, and snorkeling. The cost of living in Corozal, Belize, is inexpensive, and expats can easily afford to live in the city for under $1,500 a month.
Renting an apartment costs between $200-$500, while meals cost $5 to $10 on average. Buying a house is also affordable, with two-bedroom homes costing between $50,000 to $100,000. However, the city offers limited access to quality healthcare facilities and shopping choices. That said, just a half-hour away, across the border in Chetumal City, Mexico, you'll find an abundance of modern hospitals and a wide range of shopping options.
9. Chitré, Panama
Cost of living: $1,500
Several reasons bring Chitré, Panama, on our list of best cities for retirement in Central America. For starters, the bustling town emits a lively ambiance that is hard to resist. There are ample supermarkets, restaurants, pharmacies, car rentals, and a multi-level shopping mall for residents. Costs of living, housing, and healthcare are all pretty affordable for retirees, another plus for moving to the city.
Retirees can expect to live comfortably under $1,500. The cost of living includes rent, groceries, food, utilities, and also transportation. Two-bedroom homes cost about $350 a month, meals cost as low as $4, and utilities are also very reasonable. The city has two public and private hospitals each, as well as labs, medical and dental clinics. Overall, it is a safe and cheap city to retire.
8. Roatan, Honduras
Cost of living: $1,500
The vibrant culture, affordable living costs, and plentiful recreational opportunities make Roatan one of Central America's most desirable locations to retire. Expats cite "feeling safe, and at home" living here. The people are warm and friendly, the food scene is amazing, and residents love it for its original and fascinating culture.
The cost of living is low, with expats living comfortably on as low as $1,500. The city also boasts good private healthcare facilities with qualified physicians, most of whom have studied in the US. Overall, it’s a tropical paradise lined with white, sandy beaches, natural areas, beach and market towns alike.
7. Tamarindo, Costa Rica
Cost of living: $1,405
Tamarindo, Costa Rica, is a bustling beach hub offering miles of golden sand and a picturesque palm tree-lined beach. Beyond the palms, residents find themselves in the hustle and bustle of its charming main road. The beachfront in Tamarindo is decked with an array of establishments, including vibrant bars, exquisite restaurants, relaxing spas, reputable real estate offices, and charming souvenir stores. Together, they create an enchanting paradise-like atmosphere that captivates visitors and locals alike.
Nestled on the picturesque Nicoya Peninsula, this location offers residents a unique advantage - access to Nicoyan water, renowned for its abundant calcium content. With this natural elixir at their disposal, residents can fortify their bones and potentially reduce their risk of heart disease, making it an ideal place for a healthy and vibrant lifestyle.
6. Placencia, Belize
Cost of living: $1,350
Placencia, Belize, has made it to our list of Central America's best cities to retire in, and it's no wonder why. With its near-perfect weather, idyllic surroundings, and laid-back lifestyle, the allure of this coastal gem is irresistible to those seeking a peaceful retirement experience. The best thing about retiring to this town is that retirees can live as cheaply as they desire. On average, an expat retiree's cost of living is $1,350.
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Disclosure: none. 12 Best Cities to Retire in Central America is originally published on Insider Monkey.