15 Most Expensive Countries To Retire To
Retiring abroad can be an exciting way to get new experiences when you have the most time to enjoy them. However, not all countries are cheaper than the U.S. In fact, when you factor in not only expenses but the country’s purchasing power — that is, how far your dollar stretches — many other countries turn out to be not very affordable either, especially for retirees living on a fixed income or a tight budget.
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Even if a country has low rent prices and affordable grocery costs, it could be pricey in other areas. High taxes, low wages and above-average transportation costs can all contribute to a high cost of living for residents.
GOBankingRates crunched numbers from 550 international cities in 140 countries to find the places where you might struggle to cover the costs of daily living. The study also included the local purchasing power for each country, which shows how much your dollar can buy. Generally, the higher the overall cost of living and the lower the purchasing power, the more expensive it would be to retire there.
With that in mind, here are the 15 most expensive countries to retire to.
Ireland
Cost of living index: 70.4
Local purchasing power: 80
Ireland, a tourist-rich location, is one of the most expensive countries to retire in, but still affordable compared to the U.S. Here, the cost of groceries is about 14% lower than the U.S., and rent is a few percent cheaper, as well.
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New Zealand
Cost of living index: 70.7
Local purchasing power: 87.3
New Zealand’s cost of living is comparable to the U.S overall — less than half a percent more expensive — but retirees might be tempted by the fact that groceries are more than 3% cheaper than the U.S., and average apartment rent, at $490, is nearly $300 less.
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Luxembourg
Cost of living index: 71.7
Local purchasing power: 133.2
Luxembourg’s cost of living is just a few percent cheaper than the U.S., but it has stronger purchasing power, meaning your dollar stretches further here.
Hong Kong
Cost of living index: 72.4
Local purchasing power: 68.8
Hong Kong stands apart from the rest of China on this list due to its much higher cost of living — which is not far off from the U.S., but not all the expenditures line up with the U.S. Apartment rents are more expensive in Hong Kong, but groceries are cheaper.
Australia
Cost of living index: 75.4
Local purchasing power: 89.3
Australia is one of the most expensive countries to live in, slightly more expensive than the U.S. Additionally, groceries are 1.5% higher here.
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Denmark
Cost of living index: 79.2
Local purchasing power: 96.9
Cost of living in Denmark rises above that of the U.S. by nearly 5%. Average apartment rents are low here, however, at $463 as compared with $750 in the U.S.
Norway
Cost of living index: 82.2
Local purchasing power: 90.7
The Scandinavian country of Norway is about 10% more expensive to live in than the U.S. Groceries are only a few percent higher, though, and average apartment rent is relatively low at $447 per month.
Jersey
Cost of living index: 82.6
Local purchasing power: 67.8
Jersey is part of the U.K.’s Channel Islands, and you’ll pay for the rare opportunity to live here. The cost of living is about 9% higher than the U.S. overall. Groceries are 6% cheaper, though. However, its low purchasing power makes it pricier to retire there.
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Barbados
Cost of living index: 84.2
Local purchasing power: 34.3
Barbados’ cost of living is 10% higher than the U.S. overall, and its local purchasing power is less than 82% as much as what you’d have in the U.S. Rent is lower than many of the countries on the list, however, at an average of $311 per month. Groceries are 6% higher than the U.S.
Singapore
Cost of living index: 85.9
Local purchasing power: 85.9
Singapore has a cost of living that’s about 11% more expensive than the U.S. overall, and groceries are about 4% more expensive. Rent is quite expensive, however — at $1,379 per month, it’s the most expensive apartment rent on this list.
Iceland
Cost of living index: 87.7
Local purchasing power: 100.4
The cold climes of Iceland come at a 15% cost of living increase over the U.S. Groceries are around 12% higher here, though rents are a bit cheaper.
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Bahamas
Cost of living index: 93.7
Local purchasing power: 37.4
The tourist-dense Bahamas are, unsurprisingly, more expensive than the U.S. by almost 20%. And it feels even more expensive due to its strikingly low purchasing power.
Cayman Islands
Cost of living index: 115.4
Local purchasing power: 71.4
The Cayman Islands are known to cater to the rich, so you will expect to pay well above what you’d expect in the U.S. In fact, the Caymans cost more than 41% higher than the U.S. Average apartment rent is also hundreds of dollars more expensive, at $1,169 per month.
Switzerland
Cost of living index: 117.3
Local purchasing power: 110.8
Switzerland has the second highest cost of living on this list and among the highest in the world. The only area where costs are comparable is in average rent, which is less than $100 higher than rent in the U.S. Groceries are a whopping 43% higher than the U.S.
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Bermuda
Cost of living index: 141.1
Local purchasing power: 75.9
Bermuda takes the No. 1 spot on this list with a cost of living that is almost double that of the U.S. Most of that comes in the form of rent, which averages $1,373 per month. Groceries are a stunning 72% higher here than the U.S.
Methodology: To find the most expensive countries to retire to, GOBankingRates analyzed the cost of living indices for 550 cities in 140 countries, as sourced from Numbeo. The affordability was assessed using the cost of living indices that compare each location to New York City. For each location, a number of factors was included for calculations: [1] cost of living index, [2] local purchasing power index, [3] grocery cost of living index, [4] healthcare cost of living index, and [5] average rental cost. The average rental cost was calculated using the average rental cost in a city center and average rental cost outside a city center, both sourced from Numbeo. All locations had to have all data factors available, or they were not included. The factors were sorted to show the places with the highest to the lowest overall cost of living index, showing the most expensive countries to retire to. All data was collected and is up to date as of Jan. 12, 2024.
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