Although the Mexican border has been taking heat for the large migration of undocumented immigrants entering the United States, there has been a large migration of Americans relocating and retiring in Mexico. The reason for this being the better weather, new experiences, and relaxed lifestyles that they will find as they head south into Mexican territory. These expats also enjoy access to affordable and quality healthcare and a lower cost of living. Mexico is a popular destination because it offers all this – plus its close proximity to the US makes it easily accessible and cheap to travel between to visit family and friends.
One of the first things to consider when deciding to live abroad is the cost of living in that country. Below, we take a quick look at how much money you might possibly need to retire comfortably in Mexico.
No matter where you retire, the way you retire greatly affects the amount of money you will need to do it. It is completely possible to retire on a fraction of a salary of what you would receive in the United States in Mexico. For instance, if you are willing to live modestly in a small apartment, eat at home, and sacrifice some of the comforts you may be used to back home you could save tons of money. Contrastingly, you could easily spend $15,000+ a month living in an exclusive beachside community while participating in expensive leisure activities, fine dining, and travel.
Most people who retire abroad fall somewhere in the middle between lavish living and budget consciousness. In order to achieve this in Mexico, a retired couple might be looking at the following monthly costs. Keep in mind that this level of budget in Mexico permits renting a house with three-times-a-week maid service and a weekly gardener:
These numbers are based on estimates on the website www.internationalliving.com.
For about $2,175 a month, or about $26,100 per year, a couple could retire comfortably in Mexico. With the peso hitting record lows, Americans can take advantage and stretch their retirement budget even further. Take for instance that the average monthly benefit for retired workers is $1,341. For a couple receiving that amount, this adds up to $32,184 each year – just enough to cover this budget.
Of course, retirement costs vary depending on each person, and your costs could be lower or higher than the estimates stated depending on your situation and lifestyle choices. Also remember these estimates don’t include expenses such as traveling to/from your retirement destination, moving costs, taxes, or emergencies.
Lifestyle Determines the Amount of Money You Will Need
