5 Ultra-Cheap Overseas Retirement Destinations

Adapted from abcnews.go.com by Genevieve Shaw Brown, January 1, 2013

We American’s can retire in comfort on a budget of less than $1,000 a month if we are willing to live overseas, according to a new report from the live-abroad experts at InternationalLiving.com.

Each editor at InternationalLiving sent in details of their personal monthly budgets, which included most expenses to live comfortably.

#1 - Nicaragua - $995 per month
Nicaragua boasts a dramatic Pacific coastline, long, gentle Caribbean beaches, volcanoes and freshwater lakes that dot the hilly inland. Colonial cities like Granada and Leen offer a taste of days gone by. Managua has top-notch theatres and a range of international restaurants. Editors say you will probably live in Nicaragua with even more luxuries than you were accustomed to. Sample monthly budget for two people: Electricity (without A/C) - $45, Water - $20, Propane gas - $20, Groceries - $200, Entertainment - $100, Rent - $450, Health Insurance - $100, Maid 3 times a week - $60.

#2 Malaysia - $1,080 per month
A couple can easily live on $1,000 but for $2,000, you can live in total luxury. A large bag of fresh fruit - $4, reliable internet - $30, cable TV - $40, Rent - $500, electricity - $100, water - $10, cell phone - $10, gas - $4, maid 4 hours per week - $15, transportation - $34, health insurance - $33, entertainment - $300.

#3 Ecuador - $1,415 per month
In Ecuador, editors say you can retire easily on just $17,000 per year and live a very comfortable lifestyle. Many foreign residents have main homes in the city plus a country or beach home - something that is usually impossible in the U.S. For a couple living in Cuenca with a pretty luxurious lifestyle: Rent - $500, utilities (phone, internet, cable) - $150, maid 2 times a week - $60, groceries - $300, vehicle expense - $140, clothing - $70, entertainment - $175, healthcare (4ea $30 visits per year, per couple) - $20.

#4 Panama - $1,865 per month
Panama is much more developed than most visitors expect because of their skyscrapers and readily available amenities. Plus, you can still take a taxi across town for a buck or two, get a haircut for a couple of dollars and a meal with wine for $30. Sample budget for two people: Rent - $800, electricity - $100, water - $15, gas for home - $15, groceries - $400, entertainment - $200, phone/internet/cable - $60, transportation - $100, full-time maid - $175.

#5 Mexico - $2,129 per month
In Mexico, things take longer, so you’ll need to learn to slow down. Goods and services cost less, so you can afford the kinds of luxuries only the very wealthy enjoy up north. In most places, you can still have the comforts you are used to in the U.S. Sample budget for two: Rent - $800, utilities (electricity, gas, water, phone, cable, internet) - $220, groceries - $300, entertainment - $250, health care (two on IMSS plus $70/mo for incidentals) - $112, maid 3 times per week - $210, gardener once a week - $87, incidentals - $150.

Visit InternationalLiving.com for more information on retiring abroad.