If I were single now, and my Social Security check was $1200 per month, where would I retire today if I wanted cooler weather?
I get asked this every few months. “Dan, many of these places you share are at sea level in the tropics. But I can’t take the heat. Where would you retire today, if you were single, couldn’t take the sea-level heat, and wanted to retire on around $1200 per month?”
So I have been thinking about that, and I will share 4 places with you now. But don’t think you can live on $1,200 a month. Most of the expats I meet living there spend more. But I’ll give you those numbers also.
My name is Dan. I left the United States 19 years ago, and I have lived in 78 countries so far. I write reports about the best places to live in paradise for pennies.
I have picked the following 4 places based on four simple criteria: affordability, acceptance by locals, a high quality of life, and cooler mountain temperatures, but not cold. It never snows in these places.
For me, quality of life means feeling good about my life while I am living there. I also need to feel safe, enjoy my day-to-day life, and feel welcomed by locals.
There’s no AI in this video. I will only show videos we took with the camera in our hands, with our feet on the ground in each place. The last place I show you is where I would actually go live today if I couldn’t take the heat at sea level.
Oaxaca, Mexico
At 5,000 ft, or 1,500 meters, above sea level, the gorgeous city of Oaxaca, Mexico, sits in the highlands of southern Mexico, where it is much cooler than the beaches most foreigners visit. Oaxaca is also home to many of Mexico’s original peoples.
Oaxaca’s arts, crafts, and clothing are as colorful (or more) than anywhere else in Mexico. The arts of the original people are well preserved in Oaxaca. Original temples outside Oaxaca, like Monte Albán and Mitla, were not completely destroyed by Spain, as in other parts of Mexico. Some say the Conquistadors were just too lazy to explore this far south.
Mexico’s highlands are cooler than its beaches. For example, Oaxaca’s average daytime high in the summer months is 83°F (28°C). Additionally, Oaxaca has a lower rate of violent crime and cartel violence compared to other cities in Mexico.
The central area of Oaxaca is absolutely gorgeous, with the colonial-era architecture, cobblestone streets, the cathedral, and an assortment of delicious restaurants and food carts with both local Oaxacan cuisine and international favorites.
The world has learned to love Oaxaca. So if you go to Airbnb and try to rent for a month, you will see one-bedroom apartments in the central area going for $700 USD and up. In that expensive area, you can still get apartments on a one-year lease for around $500.
So frugal people look for apartments about a mile outside the central area. There you will find one-bedroom apartments on a one-year lease for around $350. I cover how to find cheap apartments in this Report.
One or two days a week, I would go into the central area and enjoy people-watching. Buses are $0.50 cents each way. I would eat two or three meals per week in restaurants, averaging about $6 per meal. That would be around $100 a month in restaurants. I would buy groceries in the open-air markets, and that would be about $200 per month.
Most people don’t use AC in Oaxaca because the temperature is reasonable year-round. My water and electricity would be about $55 per month. My cell phone would be about $16 per month. Many apartments have Wi-Fi included. Laundry would cost $30 per month, and bus fare would be about $20 per month.
|
Oaxaca Mexico |
Low USD |
Middle USD |
|
Rent |
350 |
700 |
|
Restaurants |
100 |
250 |
|
Groceries |
200 |
350 |
|
Utilities |
55 |
80 |
|
Laundry |
30 |
50 |
|
Transportation |
20 |
100 |
|
Smartphone |
16 |
32 |
|
Basic Costs |
771 |
1562 |
|
Alcohol |
60 |
180 |
|
Entertainment |
100 |
200 |
|
Misc |
100 |
200 |
|
Estimate Total |
1031 |
2142 |
The middle range is just what more typical expats would spend retiring in Oaxaca per month. More typical expats spend more because they recreate the type of lifestyle they have in their home country, which can often be much more expensive.
However, you should not rely on anyone else’s estimate for the cost of living. To determine your cost of living, you must do an exploratory visit, decide what you would rent, where you would eat, how you would entertain yourself, how you would shop, and add it all up.
For years, people entering Mexico would be given 180 days on a tourist visa. Then they would exit Mexico and return for an additional 180 days. Now immigration officials do not necessarily honor back-to-back visa runs.
Additionally, retirement visas now require showing a pension of about $4,500 per month. Alternatively, you can show continuous funds of $75,000 USD or its equivalent in a bank account in your home country. If you have neither, then you can attempt to get a job teaching English and apply for a work visa. To teach English you need a minimum of a TEFL certificate, but if you have a bachelor’s degree, your chances are even higher.
Once you have a work visa or temporary residence visa in Mexico, you can get Mexican national health insurance through the public IMSS system which is about $500 USD per year.
Mexico is ranked 45th in the world for healthcare compared to the US which is ranked 15th.
In summary, I would choose Oaxaca, Mexico if I wanted to be a flight away from the United States and in the same time zone. Mexico was the first foreign country that I fell in love with and I enjoy it still to this day. And Oaxaca is perfect for people that prefer cooler weather.
Now, I am not saying you could live on $1,200 a month in any of these places. Statistically, it is much more likely that you would spend much closer to the middle range estimate.
$1200 per month is for the most frugal kind of single people. The kind of people who saved 30 to 40% of every paycheck. They drove a 10-year-old car to work and brought a bag lunch. That’s the guy I am talking about. But even they are not guaranteed to be able to live on the low end, which I’ll explain at the end.
Baguio, Philippines
I spent almost two years touring the Philippines. I can say without reservation that if you are interested in exploring remote white sand beaches, floral coral reefs, colorful fish, and gorgeous waterfalls, the Philippines will be your personal heaven.
The Philippines is also famous for the beautiful, friendly people who live there. Many single Westerners go to the Philippines to find love in retirement. But the Philippines can be too hot for some people.
For people who enjoy cooler weather, Baguio in the Philippines is the place to be.
At 4,600 ft, or 1,400 meters above sea level, Baguio’s average daily high temperature during the summer months is 76°F (24°C). During Spain’s colonial rule, colonists moved up to Baguio during the summer months for the cooler weather.
Today, the rolling hills and meadows surrounding Baguio are the Philippines’ breadbasket. It is also a university town, so there’s always something to do, including year-round entertainment. The main street is blocked off on Sundays, and locals dress up and draw colorful chalk cartoon characters on the street.
There’s even a large central park at the center of Baguio, with a lake in the middle of it, where people paddle boats during the summer, run around the park, and ride bicycles and roller skates. It’s a beautiful way to spend the day in Baguio.
The markets in Baguio are full of fresh fruits, vegetables, and proteins from the farms in the surrounding areas that couldn’t be fresher sold at reasonable prices. And for people who love hiking in cool mountains, there’s always something to do.
One-bedroom apartments in the central Baguio go for $750 USD or more per month on Airbnb. So, one-year leases in central Baguio start around $500 plus utilities.
So frugal people look for apartments about a mile outside the central area. They find one-bedroom apartments on a one-year lease for around $400 per month. I cover how to find cheap apartments in this Report.
One or two days a week I would go into the central area and enjoy the people watching. Jeepneys (buses) into the central area of Baguio cost about $0.20 USD (₱13.00) for the first few kilometers (or a mile). I would spend about $15 a month on transportation.
I would eat two or three meals per week in local restaurants, averaging about $3-4 per meal. That would be around $75 a month in restaurants. I would buy groceries in the open-air markets and that would be about $250 per month.
Most people in Baguio don’t use air-conditioning because the temperature is reasonable year-round. My water and electric would be about $70 per month. My cell phone would be about $18 per month. Many apartment have Wi-Fi included. My laundry would cost $20 per month.
|
Baguio Philippines |
Low USD |
Middle USD |
|
Rent |
400 |
750 |
|
Restaurants |
75 |
250 |
|
Groceries |
250 |
350 |
|
Utilities |
70 |
120 |
|
Laundry |
20 |
50 |
|
Transportation |
15 |
100 |
|
Smartphone |
18 |
36 |
|
Basic Costs |
846 |
1656 |
|
Alcohol |
50 |
130 |
|
Entertainment |
100 |
200 |
|
Misc |
100 |
200 |
|
Estimate Total |
1096 |
2186 |
The middle range is just what more typical expats would spend retiring in Baguio per month. Typical expats spend more because they try to recreate the lifestyle of their home country, which can often be much more expensive than living more like a local.
However, do not rely on these cost of living. In order to determine what your cost of living would be, you must do an exploratory visit, determine what you would rent, how you would eat, how you would entertain yourself, how you would shop, and add it all up.
Many Westerners arrive in the Philippines on a tourist visa exemption. Then they just start getting visa extensions for about $60 per month. The Philippines often allows people to stay for up to 36 consecutive months with visa extensions.
After 36 months, people do a visa run to a nearby country and come back and start the 36-month process over again. For this reason, many never bother to get a retirement visa. But retirement visas are available.
Expats aged 50+ can show a pension of $800 per month and deposit $15,000 in a Philippine bank to get an SRRV retirement visa. At that age, without a pension, people can still get that visa by depositing $30,000 in a Philippine bank. Other visas are available for younger ages.
The Philippines are ranked 87th in the world for their healthcare compared to the US which is ranked 15th. The best-ranked hospitals are in Metro Makati and Cebu in the Philippines. In general the cost of healthcare in the Philippines is higher than in Thailand or Malaysia, which are ranked the highest in Southeast Asia other than Singapore.
Phil Health, which charges about $300 per year for a very basic policy in the Philippines for retirement-age foreigners on a retirement visa. But many retired foreigners report having to pay large additional fees to hospitals that are not covered by this insurance.
Some foreigners buy international policies that cover them in other Southeast Asian countries with higher medical rankings than the Philippines, such as Thailand or Malaysia.
Personally, I decided to self-insure in Southeast Asia, but most new expats returning overseas aren’t comfortable with that. But I’ve been in the hospital in Asia before, and I understand how much cheaper it is than in America. I do not recommend that new expats self-insure for medical.
In summary, I would choose Baguio if I wanted access to the most beautiful white-sand beaches and nature in the world, but wanted to live my daily life in beautiful, cooler mountain weather where it never snows. The average coolest nighttime low temperature in Baguio during the winter months is around 56°F (13°C). You’ll need to wear a sweater.
Boquete, Panama
We were really surprised about the natural beauty we found in the misty mountain town of Boquete in Panama. We met many expats who hiked the gorgeous trails above Boquete in groups and it was one of the most beautiful places in the world.
The mountains and the rivers running through Boquete are breathtaking. The diversity of restaurants and the nightlife in a relatively small town, along with the craft beers, the gorgeous homes, and the available lifestyle in this beautiful village are quite rare in the world.
We toured all over Panama, including the Caribbean and the Pacific side, and Boquete was a striking place where mountain lovers who cannot take the heat at sea level will have a remarkable retirement.
Boquete central sits at an elevation of about 3900 feet (1,200 meters) above sea level but the surrounding mountains rise elegantly towards the sky above. Summers in Boquete, average highs are about 75°F (24°C), whereas winter average lows drop to around 56°F (13.5°C).
Country-wide inflation in Panama has risen about 10% since our last visit in 2021. But Boquete has experienced sharper localized increases in rental and housing costs due to rising foreign demand. It is an expat soft landing in Panama.
Premium rentals and properties in Boquete have outpaced national averages, with central one-bedroom apartments averaging around $800 per month as the town leans further into retiree and digital nomad demands.
So I would walk local neighborhoods south of town and look for a 1-year lease on a funky studio with local-style amenities for an annual lease of about $600 per month. I cover how to find cheap apartments in this Report.
Twice per week, I would eat in the fonda-style local restaurants for about $5 for a traditional serving of rice, beans, vegetables, and a protein (like chicken, beef, or pork), including a small side dish. That would cost about $100 a month in restaurants.
Mostly I would cook at home with groceries I had purchased at the public market. If the groceries in Boquete were overpriced because of the expats living there, I would take the $2 bus down the mountain to David and purchase groceries in the public markets there, which are easily 20-30% cheaper.
My groceries, including the bus to and from David, would be around 250 per month.
One or two days a week I would go into the central area of Boquete to enjoy the people watching and eat in the fonda-style local restaurants. The shared minivans that transfer people around the Boquete area are about $1 to $2. I would spend about $30 a month on transportation.
Most people in Boquete don’t use air-conditioning because the temperature is reasonable year-round. My water and electric would be about $50 per month. My cell phone would be about $25 per month. Many apartments have Wi-Fi included. My laundry would cost $32 per month.
|
Boquete Panama |
Low USD |
Middle USD |
|
Rent |
600 |
800 |
|
Restaurants |
100 |
250 |
|
Groceries |
250 |
400 |
|
Utilities |
50 |
100 |
|
Laundry |
32 |
60 |
|
Transportation |
30 |
100 |
|
Smartphone |
25 |
50 |
|
Basic Costs |
1087 |
1760 |
|
Alcohol |
50 |
200 |
|
Entertainment |
100 |
200 |
|
Misc |
100 |
200 |
|
Estimate Total |
1337 |
2360 |
The middle range is just what more typical expats would spend retiring in Boquete per month. More typical expats spend more because they try to recreate their home-country lifestyle, which is often much more expensive than living more like a local.
However, don’t rely on these cost-of-living numbers. You must do an exploratory visit to determine your actual cost of living based on your lifestyle before making any permanent changes.
Many Western countries offer a pensionado (retirement) visa if you can show a lifetime pension or Social Security of about $1,000 per month. And the monthly pension requirement drops to $750 per month if you buy local real estate worth $100,000+. You can get residency for dependents with the pension increase of $250 per month for each dependent.
Panama is ranked 67th in the world for their healthcare compared to the US which is ranked 15th. Personally I decided to self-insure but that is not something that I recommend others do. Many expats buy local private health insurance which can range from $50 to $150 a month depending on age, pre-existing conditions and deductibles.
In summary, I would choose Boquete if I wanted to have access to the most beautiful white sand beaches and nature in the world, but wanted to live my daily life in cooler mountains where it never snows.
Đà Lạt, Vietnam
Vietnam is presently my favorite country in the world and Đà Lạt is my favorite cooler mountain city in Vietnam. Dalat sits at an elevation of approximately 1,500 meters (4,921 feet) above sea level. Average Summer Highs in Da Lat are 75°F (24°C), while average winter lows are 50°F (10°C).
Đà Lạt was popularized by the French during the colonial era as a hill station where people would go in the hottest part of the summer. The city itself is beautiful, with a lake, charming construction, and gorgeous rolling hills surrounding it.
Vietnamese food is presently my favorite food and it is remarkably priced compared to most anywhere in the world. My favorite Vietnamese restaurants in Đà Lạt typically run $1.50 to $2.50 per entree. At age 66 I only eat two meals a day now so I don’t get fat, so it costs about $5 per day eating my favorite food in the world.
Đà Lạt also has Western restaurants that run about $6 to $8 per meal. Once a week I would go out for a Western meal averaging about $7 per entree. So, for both western and local restaurants, I would spend about $180 per month in restaurants.
I would probably spend another $100 per month in the grocery store, for odds and ends including cashew nuts, which are famous and delicious in Vietnam.
Đà Lạt is very walkable, so I wouldn’t need a scooter. But I would probably rent a scooter about once a month, for a weekend, so I could drive up into the gorgeous mountains, tea gardens, and temples that surround the city. For transportation, both the weekend scooter rental and an occasional Grab taxi would run me about $30 a month.
By living in the cool mountains of Đà Lạt year-round, I would avoid paying for AC at the beaches in high season, so my utilities would be about $40 a month for electricity and water.
Đà Lạt still has local-style apartments available starting at around $300 per month plus utilities. I cover how to find cheap apartments in this Report. You’ll have to pay more, about $600 on up, per month if you book a month on AirBnB, but that typically includes utilities.
The smartphone would be about $10 per month, while laundry, cleaning, and folding would cost about $25 per month.
|
Đà Lạt Vietnam |
Low USD |
Middle USD |
|
Rent |
300 |
600 |
|
Restaurants |
180 |
250 |
|
Groceries |
100 |
250 |
|
Utilities |
40 |
60 |
|
Laundry |
25 |
30 |
|
Transportation |
30 |
100 |
|
Smartphone |
10 |
20 |
|
Basic Costs |
685 |
1310 |
|
Alcohol |
50 |
130 |
|
Entertainment |
100 |
200 |
|
Misc |
100 |
200 |
|
Estimate Total |
935 |
1840 |
The middle range is just what more typical expats would spend retiring in per month. More typical expats spend more because they try to recreate the lifestyle of their home country, which can often be much more expensive than living more like a local.
Do not rely on these cost-of-living numbers. You must do an exploratory visit to determine your actual cost of living based on your lifestyle before making any permanent changes in your life.
Although Da Lat is my favorite hill station in Southeast Asia, it has a drawback that some people say makes it unlivable. That drawback is … there is no retirement visa in Vietnam. So most of the retirees living in Vietnam do four visa runs per year.
If I took a base in Da Lat, I would use my 4 visa runs to visit some of my other favorite parts of SE Asia. By booking in advance, the flights for my visa runs from Vietnam to Cambodia, Malaysia, or Thailand would average around $150 per visa run.
A cheap hotel during each visa run would run about $30 per night for six nights ($180), and food would cost around $15 per day ($90). My return visa fee to Vietnam would be $25 USD, so I would spend about $500 per visa run.
At four visa runs per year, that would cost an additional $ 2,000 per year, or about $166 per month. So my monthly cost would still be under the $1,200 goal on the low end.
Before You Fly
Visa and entry rules change all the time. Make sure to check the Embassy in your home country for any country you want to visit or retire to for visa changes. That Embassy’s web page will explain what Passport holders from your home country need to enter each of the above countries.
Get Qualified Advice from a Professional
Once you set up a plan to retire overseas, talk to your accountant, doctor, and lawyer to help you spot holes in your plan. I am not qualified to do any of that, and I do not know your specific personal details. So, seek appropriate advice before executing your plan.
Retiring on a Low Pension Overseas
Do not move overseas until you have set up proper banking and communications in your home country. Come to Vagabond Buddha and grab my free ebook where I discuss the minimum conditions I would achieve before leaving my home country.
If you’re going to attempt to retire on a low pension overseas, please be aware of the following. It’s not safe to live on a low pension if you don’t also have significant savings to help you in an emergency. This isn’t advice for you, but this is how I thought about setting a minimum emergency savings amount before taking the risk of moving overseas.
