Have you noticed how much information appears in both mainstream and social media about American pensioners planning or wishing to retire abroad?
If you’re among those dreaming of retiring abroad, you’re in good company. According to Fortune, “boomers are leaving America to retire abroad in droves because the U.S. is just too expensive.”
Or, as CNN writes: “As America’s retirement crisis grows, so too does the dream of retiring abroad where cities are walkable, social services plentiful and the cost of living affordable.”
The number of Americans looking to settle abroad has tripled over the past 30 years, according to a 2024 Monmouth University poll. And the number of Americans living outside the U.S. and getting their monthly retirement payments in foreign countries has increased from 307,000 in 2008 to more than 700,000, reports the Social Security Administration.
Why Europe?
The possibilities are endless when the whole world is one’s oyster. But Europe continues to top the list for many dreaming of a move abroad.
Why Europe? The reasons for retirees can also be endless: A desire to experience the culture of their ancestors; having enjoyed vacations on the old continent and imagining spending more time there; climate; overall superior quality of life; political, ideological or economic motivations to wish for a radical change.
Europe can offer something for everyone because, after all, as explained by a recent report by the World Population Review (WPR) on the Cheapest European Countries 2024, “Europe as a whole has 50 countries, 27 of which are part of the European Union.
Europe is often associated with high costs of living for travelers, expats and permanent residents alike, particularly in Western Europe and the Nordic countries. However, while some European countries are comparatively expensive, many others are quite affordable, particularly when compared to the United States.”
Per the Bureau of Labor Statistics, the average American 65 and older spends $4,818 per month in the United States.
Along with basic considerations to keep in mind when looking for a good and cost-effective retirement destination, CNBC notes that if it were going in the reverse direction, “you’d likely scratch New York and Los Angeles off your list right off the bat. The same goes in Europe.”
Among those basic considerations, advice includes knowing the residency rules regarding owning or leasing property in the country you choose. Most require evidence of a minimum income level and private health coverage. Also, “living on a fixed income in retirement always requires a good deal of planning, and doing so abroad adds another layer of complexity.” For that reason, it’s smart to consult professionals.
Apart from the cost of living, factors including healthcare, entertainment, safety, cultural life and ease of learning the local language (because most aren’t English-speaking) are among the factors to be considered when selecting a European country that offers the possibility to live comfortably on a monthly budget of between €1,000 to €1,500.
Romania
Romania is among the countries that almost unanimously appears on the lists of more affordable European countries. Stunning landscapes, picturesque towns and colorful cities are added to a very affordable lifestyle.
The country’s capital, Bucharest, ranked 142nd on the Cost of Living City Ranking 2023 by the financial services company Mercer, which included 226 cities across the world in order from the most expensive to the least expensive places to live. It assessed the comparative costs of more than 200 items in each location—from inflation and exchange-rate fluctuations, economic and geopolitical volatility, housing, food and transportation costs to clothing, household goods and entertainment.
In Bucharest, a one-bedroom flat costs around €400 a month and utilities add €100.
A calculation by the Daily Express for Britons wishing to relocate adds that the “individual monthly food budget is around €300 and expats can treat themselves to eating out every now and then thanks to the relatively low costs of restaurants.”
Lunch menus can be found at $4 and hotels, hostels, and apartments starting at $7 per person.
In areas of the country such as the north region, the monthly budget for an individual starts at about €600.
Since its partial accession to the Schengen area, the country according to the Ministry of Foreign Affairs: “offers a national long-stay visa allowing entry and stay of third-country nationals for a period that does not exceed 90 days.”
U.S. citizens are allowed to visit Romania without a visa for a total of 90 days within a 6 months period, the U.S. Embassy in Romania says.
“For any stay longer than 90 days, a temporary residency permit (permis de sedere) must be requested from the Romanian Immigration Inspectorate (Inspectoratul Roman pentru Imigrari). Contact information, application requirements and fees for residence permits can be found on the website of the Romanian Immigration Department.’
Although it is part of the E.U., Romania does not use the euro, which is considered by some to be one of the reasons the costs of living remain low in the country. “Corruption at various levels of government remains high,” WPR advises.
Portugal
It’s no secret that retiring in Portugal offers a low cost of living, affordable real estate, a good healthcare system, warm climate and friendly locals.
No surprise then that it’s highly popular among retirees, and relatively affordable at the moment—and that some experts are expecting prices to rise. That’s already happening at popular and attractive cities such as Lisbon and Porto.
Nevertheless, while it’s more expensive than many of the Eastern European countries, Portugal is still considered to be the cheapest in Western Europe.
“At a monthly budget of about €1,200, Portugal offers a warm climate, access to the ocean, and a high level of safety,” WPR notes. “Prices in Portugal are about one-half or even one-third of other Western European countries, as long as one does not plan to settle in Lisbon.”
The Portuguese health service is accessible to all citizens and legal residents and is normally free of charge, although there may be some small fees associated with emergency room visits and ambulance use.
Portugal is also one of the world’s easiest countries to which to immigrate.
Czech Republic
While costs are higher in the beautiful capital, Prague, the rest of the country offers gorgeous scenery, picturesque countryside and very affordable real estate.
The monthly budget for a person living in Czech Republic is roughly €950, according to the World Population Review tables.
Located in Central Europe, the Czech Republic grants easy access to other European countries including Austria and Germany.
The standard of living in Czech Republic is about the same as Germany but costs about half as much. Meals can be as cheap as $3 to $5 . The country also appears high on the WPR’s list of happiest countries in the world.
Bulgaria
Another Slavic country, Bulgaria, is considered one of Europe’s hidden gems for travelers and expats on almost every list of affordable countries in Europe.
Bulgaria, which joined the E.U. alongside Romania in 2007, offers cities rich in history, beautiful landscapes, amazing beaches along the Black Sea and mountains for winter skiing.
Both countries also became Schengen area members: since last March which means that “the Schengen rules will apply in both Member States including on issuing Schengen visas and controls at the internal air and sea borders will be lifted, “ as stated by the European Conmission.
“The Schengen accession of these two Member States will make the common area more attractive by significantly expanding the world’s largest common area without internal border controls.”
A person’s monthly budget for living in Bulgaria is calculated to start as low as $600.
Sofia, the beautiful and vibrant capital, is 168th on last year’s Mercer’s Cost of Living City Ranking. There, one-bedroom flats can be found at around €400 and basic bills at around €100.
Transportation and dining are quite affordable in Bulgaria, with long-distance train tickets starting at $5 and monthly passes covering both metro and bus at €35. As for food, dinner with a drink costs less than $10. The average monthly food expenses come at around €230.
Much like in Portugal, healthcare is mostly free with small fees for some medical services.
“It is relatively easy to legally take up residence in the country, even if one is not an E.U. citizen,” WPR notes.
“Bulgaria is the poorest member of the E.U. and is still working to develop its infrastructure, increase its overall standard of living, and deter corruption. However, it remains one of the most highly recommended destination countries in Europe.”
Spain
Spain — or more precisely, specific regions, towns and cities — have been making the news this summer because, overwhelmed by massive tourism, they are the center of a major backlash as inhabitants organize large-scale protests to demand strict government control.
But the problem doesn’t affect most of the rest of the country and a number of studies still recommend Spain as one of the most affordable destinations to retire in Europe.
“Warm weather, a high and relaxed lifestyle, excellent cuisine, very good healthcare, a competitive education system and a welcoming culture,” are among the advantages noted in the Get Golden Visa guide.
There are some six million foreigners living in Spain, where people can retire comfortably on about $2,000-$2,200 a month, about $25,000-27,000 a year. “If you choose to live a bit further away from the big cities, you can retire at approximately $1,700-$1,900 a month, which is about $20,000-$22,000 annually,” the site writes.
The relocation agency Moving to Spain has published the top 10 most affordable Spanish locations to retire, considering rent prices, average annual temperature, expat and retiree populations, healthcare services, crime rates, and wealth tax rates.
The list includes: Cádiz, Córdoba, Oviedo, Gijón, Salamanca, Lloret de Mar, Burgos, Almuñecar.
