Financial advisors suggest that you will need $1 million in retirement savings in order to retire comfortably. What if you are approaching your golden years and do have $1 million saved? Does this mean that you shouldn’t retire? Is there anything you can do to better the odds that you will be able to retire and still live comfortably?
Well, there are a couple of things you can do.
- Defer retirement a few more years and continue working.
- Try to increase the amount you save for retirement.
- Think about developing a side hustle or a part-time job during retirement.
- Develop passive income streams to supplement your retirement savings.
While each of these four options are realistic measures you should probably consider, there is another option that may give you a bigger bang for your buck and will allow you to retire sooner than you think.
Consider Living Abroad
Researchers from Investopedia gathered financial data from several financial resources and determined that there are several countries where $200,000 in retirement savings can last 30 years.
Using data from Numbeo, the team from Investopedia that performed the study calculated the cost of living in several populous countries around the world. They factored in an average of $1,360 per month in Social Security benefits and a $200,000 retirement fund to calculate the most affordable countries for retirement.
After analyzing the results, they found that several countries in Central and South America made the list. A few countries in Asia made the list too. This is consistent with the findings made by International Living Magazine. Each year the magazine post it’s Top 10 Place to Retire Abroad.
The cost of living is much cheaper in these countries when compared to the average cost of living in the United States. Things like housing, food, utilities, and transportation are much cheaper. Healthcare services are just as good, if not better, but at a lower cost. In fact, the cost of living is so cheap many people find that they can retire on just their Social Security Benefits.
If you are looking to retire early, it’s possible to retire abroad. Many countries offer excellent retirement programs geared specifically for retirees that can show pension income (Social Security, investment income, or an employer-sponsored plan) of at least $1,000 per month.
Countries That Made The List
Are you curious to know what countries made the list?
Take a look below.
- Belize
- Panama
- Costa Rica
- Nicaragua
- Colombia
- Ecuador
- Spain
- Portugal
- Malaysia
- Thailand