Aljazeera.net correspondents
A large number of people around the world are looking for cheap and safe places and countries to retire and live, and moving abroad during retirement has become a viable option for many seniors around the world who are looking for a new and different lifestyle from their homelands in the next chapter of their lives.
“International retirement migration” has gained popularity in various countries around the world, including the Arab region, with the rise of globalization and travel options becoming more readily available than ever before, according to the Journal of Ethnic and Migration Studies.
The most significant flows of international migration to retire abroad come from high-income to low-income countries. In the last U.S. retiree census, there were 701,000 U.S. Social Security beneficiaries living abroad, a 20 percent increase over a decade, Forbes reported.
This is not limited to elderly retirees, but also includes young people who work remotely via the internet, and these are a new type of immigrants called “digital nomads.” Their number reached 40 million people worldwide in 2023, and is expected to reach 60 million people in 2030, according to the Guardian newspaper.
Top 10 Cheapest Countries to Retire and Live in the World
In this report, we will present the 10 cheapest and best countries for retirement and living in terms of cost of living and purchasing power, noting that there are cheaper and less expensive countries such as Ukraine and Belarus, but these countries are located in an area of wars and conflicts and are unstable. We also excluded cheaper countries such as India and Egypt, but the quality of life there is lower than others, and also due to the high rate of pollution in them.
We relied on the WorldData platform index, which is an index based on figures from the OECD, the World Bank, the International Monetary Fund and Eurostat, and does not take into account differences between poverty and wealth, as well as the prices of goods that do not belong to ordinary needs.
Two main indicators were adopted:
- Cost of living index: The average cost of living in the United States was taken as a standard benchmark with a score of 100, and all other countries are linked to this index. Thus, with an index like 80, typical expenses in another country are 20% lower than in the United States. Monthly income was also calculated based on the per capita gross national income, not the amount of wages or salaries.
- Purchasing power index: It is also calculated on a value of 100 for the United States. If it is higher, it means that people can afford more based on the cost of living relative to income, and if it is lower, it means that the population is less wealthy.
Switzerland example:
With a cost of living index of 126, all goods are on average about 26% more expensive than in the United States, but the average income in Switzerland, at $7,930, is also about 19% higher, meaning that citizens can afford more. Now the 26% higher costs are calculated against the 19% higher income, and as a result, people in Switzerland can afford about 6% less than an average American, according to WorldData.
Overall, the results should be viewed with caution as they are only indicative and not 100% accurate, as the cost of living is periodically calculated in baskets of consumer goods that represent almost everything. But many factors complicate global comparisons. For example, a typical apartment is not a standard size or equipment, and even a branded jar of butter is not the same in every country. Therefore, we should view comparisons and data like this with caution, according to the previous source.
10th place: Portugal
Portugal is distinguished by its diverse nature, including magical areas and charming beaches. It was chosen for this list for those who wish to live in the European Union countries at a lower cost than other European countries, and within a safe and healthy environment.
- Cost of Living Index: 63.5
- Purchasing Power Index: 51.6
- Monthly income: $2189
- Portuguese
- Religion: Roman Catholic (81%)
- Major cities: Lisbon, Porto, Braga
Ninth place: Morocco
Morocco is an ideal choice for Arab visitors, tourists and retirees due to its geographical proximity to various Arab countries, its political stability, and its many and varied tourist areas.
- Cost of Living Index: 40.6
- Purchasing Power Index: 11.3
- Monthly income: $308
- Language: Arabic, French, Berber
- Religion: Islam
- Main cities: Rabat, Casablanca, Marrakech
8th place: Philippines
The Philippines has a large number of tourist places and attractions that attract tourists from all over the world, as it includes wonderful natural landmarks, including lakes, waterfalls, beaches and much more. A large number of American and European retirees choose it to live in. Among the most prominent places that tourists visit are the islands of Boracay and Palawan. The capital, Manila, also includes a large group of tourist places that are worth visiting.
- Cost of Living Index: 37.2
- Purchasing Power Index: 14.2
- Monthly income: $353
- Language: Tagalog, English
- Religion: Roman Catholic (80%), Islam (5%)
- Major cities: Manila, Quezon City
7th place: Colombia
This country was chosen specifically for those wishing to live in the Latin American continent, as the country has become a destination for many people seeking to live in the embrace of enchanting nature, especially after it got rid of the drug trafficking mafias and became a safe country to live and live in, and it is also one of the cheapest countries in Latin America.
- Cost of Living Index: 36.9
- Purchasing Power Index: 23.2
- Monthly income: $573
- Spanish
- Religion: Christian Catholic (90%)
- Major cities: Bogota, Medellin, Cali
6th place: Indonesia
Indonesia deserves to be at the top of our list. It is the largest archipelago in the world, comprising five main islands and thousands of smaller islands located between the Indian and Pacific Oceans. It is a charming country with turquoise beaches, and it is also one of the cheapest countries in the world. This is why it has become a destination for retirees, tourists and digital nomads who prefer to live between its beaches and islands and enjoy its stunning nature.
- Cost of Living Index: 33.7
- Purchasing Power Index: 18
- Monthly income: $406
- Language: Javanese, Sunda, Malay
- Religion: Islam (87.2%)
- Major cities: Jakarta, Surabaya, Bandung
Fifth place: Thailand
Thailand is a country famous for tourism and is visited by visitors from all over the world. A large number of European and American retirees also reside there. It has a strong community of digital nomads and is famous for its coasts, beaches and charming islands such as Phuket and others.
- Cost of Living Index: 32.2
- Purchasing Power Index: 27.8
- Monthly income: $598
- Language: Thai, Lao, Chinese
- Religion: Buddhism (92%) Islam (4.9%)
- Major cities: Bangkok, Phuket
Fourth place: Malaysia
Malaysia is a safe and beautiful country that attracts a large number of tourists every year. Kuala Lumpur is the most famous Malaysian city, which is called the city of gardens. It is distinguished by being one of the most developed and beautiful Malaysian cities, as it is adorned with gardens, rivers and mountains. It also includes many historical and cultural buildings and skyscrapers. There are other cities and regions that are no less beautiful in Malaysia that attract visitors from everywhere.
- Cost of Living Index: 32.2
- Purchasing Power Index: 46.4
- Monthly income: $998
- Language: Malay, Chinese, Tamil
- Religion: Islam (61.3%) Buddhism (19.8%)
- Major cities: Kuala Lumpur, Putrajaya
Third place: Türkiye
Turkey attracts a large number of Arab retirees and digital nomads to live there due to its charming nature, political stability, and low cost of living compared to other European countries.
- Cost of Living Index: 30.8
- Purchasing Power Index: 47.1
- Monthly income: $971
- Language: Turkish, Kurdish, Arabic
- Religion: Islam: Sunni (70%) Alawite (25%)
- Major cities: Istanbul, Ankara, Izmir
Second place: Georgia
Georgia is a small country located in the South Caucasus on the Black Sea. Its government works to attract tourists from all over the world. It has recently become a destination for Arab and non-Arab retirees. It also includes a growing community of digital nomads from all over the world, especially in the capital, Tbilisi.
- Cost of Living Index: 30.4
- Purchasing Power Index: 27.3
- Monthly income: $557
- Language: Georgian, Russian
- Religion: Orthodox Christianity (83.9%) Islam (9.9%)
- Major cities: Tbilisi, Batumi, Kutaisi
First place: Vietnam
Vietnam is a charming country by all standards, and it is also one of the cheapest countries in the world to live in, and has recently become a destination for millions of tourists and visitors from different countries and regions.
- Cost of Living Index: 29.8
- Purchasing Power Index: 17.4
- Monthly income: $348
- Language: Vietnamese, Thai, Chinese
- Religion: None (70%), Buddhism (12.2%)
- Major cities: Hanoi, Ho Chi Minh, Danang
