Best countries with low cost of living and high quality of life that are perfect to retire to

It’s no secret that housing and everyday living costs in Canada are getting a little out of hand. For a lot of people, it’s hard enough to stay ahead of expenses while earning a full-time salary, never mind trying to make a fixed retirement income work long-term. So the question becomes: Why limit yourself to retirement in Canada if your money can go much further elsewhere?

Whether your happy place may be a beachside condo, a charming European town or a quiet mountain escape where life moves a bit slower, there are plenty of places where your retirement dollars simply go further, without sacrificing your comfort or your quality of life.

Below, we’ll break down how we ranked the best countries with low cost of living, safe environment and high quality of life and highlight some of the top places Canadians are choosing to spend their retirement years.

Our methodology

Here at Money.ca, we definitely have a method to our madness. Choosing countries for listicles like this requires a lot of research and certain criteria that must be met. Rest assured, we aren’t just picking these countries out of a hat at random.

To determine the best countries with a low cost of living and high quality of life for retirement, we evaluated a range of factors that matter most to Canadian retirees, including:

• Average monthly cost of living for a single retiree or couple
• Housing affordability, including rental and ownership options
• Healthcare quality and access, both public and private
• Safety and political stability
• Visa requirements for retirees
• Lifestyle factors, such as climate, culture, and pace of life

One check of this list of requirements, and it’s easy to see why we use them as a guideline to determine the best countries. Living costs will always be important for retirees. Income is usually limited to pensions or investments, and adding in the unpredictability of a new country, it’s clear that this is the single most important factor to consider for most Canadian retirees.

Healthcare access and public safety are equally important for retirees in a new country. We take into account the requirement for a visa and lifestyle factors as well. There is no sense in uprooting your life to move to a new country only to find out that it isn’t what you hoped it might be.

Retiring in a different country is a life-changing decision to make. We just want to make sure you have all of the information you need before deciding which country with a low cost of living and high quality of life is best for you.

Where are the best countries with low cost of living and high quality of life?

Below are some of the most popular and practical retirement destinations, balancing affordability with lifestyle, safety and access to services that Canadian retirees need. We used all of the criteria from our methodology above, plus a few intangibles (such as climate).

Portugal

Portugal consistently ranks as one of the best countries in the world for retirement, and for good reason. While it has become more popular in recent years, it is still a hidden gem in Europe, especially for Canadian retirees.

The climate is warm and sunny, but mild, providing a coastal paradise with a perfect, relaxing pace of life. Portugal has an excellent healthcare system for locals and for expats, and the living costs are much lower than in most of the rest of the countries in Western Europe. This is especially true if you live outside of the major cities like Lisbon or Porto.

If you love sunshine, fresh seafood and some of the sweetest tropical fruit in the world, then Portugal is calling your name. The best part about Portugal for Canadian retirees? English is readily available and spoken natively by most locals, making it an easy transition from Canada. All of these things make Portugal one of the best places to retire in Europe for Canadians.

• Estimated monthly cost: $1,500 to $2,000
• Healthcare: High-quality public and private options for both locals and expats
• Why retirees love it: Safety, walkable cities, coastal lifestyle, great climate and incredible food
• Visa Requirements: Non-EU residents require a D7 Visa and proof of income of at least €870 (C$1,350) per month from passive sources like a pension or investments

Costa Rica

Another popular tropical destination, Costa Rica, provides unlimited natural beauty, an affordable lifestyle and political stability. This Central American country is welcoming to foreigners and provides a solid healthcare system for both locals and expats.

While generally more affordable than Canada, Costa Rica isn’t quite as easy on the wallet as other countries on this list, like Portugal. This is primarily because Costa Rica relies heavily on the US dollar, especially in high tourist areas. So, while things are cheaper, the reliance on the US dollar can inflate prices.

Other than that, Costa Rica is a beach lover’s paradise. It has some of the most beautiful landscapes in the world, with friendly locals and some of the freshest seafood you will ever find. From Toronto, Costa Rica is less than a six-hour flight, so Canadians can always be close to loved ones.

• Estimated monthly cost: $1,800 to $2,200
• Healthcare: Universal public system plus private care for both locals and expats
• Why retirees love it: Safety, biodiversity, friendly locals
• Visa requirements: You will need to obtain residency in Costa Rica via the Pensionado Program. This program has a requirement of a minimum pension of about $1,400 monthly for life.

Panama

Panama may not be the first country that comes to mind when you think about places to retire, but it should definitely be on your list.

This Central American paradise is mostly known for the Panama Canal and picturesque tropical beaches. But beyond those beaches lies a country that has amazing biodiversity. Panama certainly has its fair share of beaches, but it is also covered in lush tropical rainforest, home to a wide variety of wildlife.

Panama is affordable for Canadian retirees and offers modern infrastructure, including high-end, affordable private hospitals. It is also close to Canada, with a similar flight time of under six hours to Toronto, similar to Costa Rica and Mexico.

• Estimated monthly cost: $1,400 to $2,000
• Healthcare: Both public and private healthcare systems for locals and expats
• Why retirees love it: It is affordable, has a diverse ecosystem and is a short flight away from Canada
• Visa requirements: The Panama Pensionado Visa allows non-residents to retire there. You will need proof of a monthly pension of about $1,400 and an extra $250 per month for a spouse.

Spain

Although it shares a border with Portugal, another country on this list, Spain has an entirely different cultural experience.

Spaniards enjoy the best of European culture, an excellent healthcare system and a peaceful, relaxed lifestyle. While Spain is cheaper than other parts of Western Europe, it can’t quite beat the affordability that its Iberian neighbour provides.

Major cities such as Barcelona and Madrid can be more expensive, but travelling to smaller towns can be cheaper and much more peaceful. It’s recommended to learn some Spanish beforehand, but Canadian retirees can certainly get by when ordering tapas at the local bar. With so much to do in Spain, Canadian retirees will be looking forward to their daily siesta to recharge before another night out on the town.

• Estimated monthly cost: $1,700 to $2,300
• Healthcare: One of the best public systems in Europe for locals and expats
• Why retirees love it: Culture, food, the healthcare system, and the wonderful climate
• Visa requirements: The most popular option is the Non-Lucrative Visa (NLV). This visa requires you to have an annual income of about $50,000.

Thailand

Thailand is at the top of the list of tropical vacation destinations for plenty of Canadians, but did you know there is a large community of retirees there as well? The Southeast Asian country offers year-round warm weather, affordable living costs and excellent private healthcare.

From bustling cities to quiet, beach resort towns, Thailand offers a wide variety of lifestyles, all at relatively low cost. Canadian retirees can relax on the beach during the day and hit up the vibrant nightlife after dark, especially in big cities like Bangkok.

• Estimated monthly cost: $1,200 to $1,800
• Healthcare: World-class private hospitals that are affordable for retirees
• Why retirees love it: Value for money, climate, food and nightlife
• Visa requirements: If you want to retire in Thailand for the long-term, there is the Thai Retirement Visa. To qualify, you will need about 800,000 THB or about $35,000 in a bank account and proof of income of 65,000 THB or about $2,800 per month.

Malaysia

We go from one Southeast Asian tropical paradise to another in Malaysia. With modern infrastructure, excellent healthcare and a low cost of living, Malaysia is certainly flying under the radar, especially compared to places like Thailand.

One benefit of retiring in Malaysia is that English is widely spoken, perhaps more than in any other country in the region. After Malay, English is the second-most spoken language in Malaysia, making it an easy transition for Canadian retirees.

If you love nature, then you will love Malaysia. This country is one of the world’s 12 mega-diverse ecosystems, with an environment that ranges from tropical rainforests to marine systems filled with aquatic wildlife. Malaysia is home to more than 15,000 different species of plants and animals.

• Estimated monthly cost: $1,300 to $1,900
• Healthcare: High-quality and affordable for Canadian retirees
• Why retirees love it: Safety, affordability, comfort and an incredibly diverse ecosystem
• Visa requirements: Malaysia offers the Malaysia My Second Home (MM2H) visa program for foreigners who want to retire there. The requirements are lengthy, with three different tiers of visa, so check with the MM2H website to be sure.

Vietnam

Another Southeast Asian country that has everything a retiree could ask for. Vietnam has a vibrant culture, with beachside resorts and major metropolises like Hanoi or Ho Chi Minh City.

The healthcare services are improving, and Canadian retirees are probably better off paying for private medical facilities, similar to those in Thailand. The Southeast Asian region is so affordable that you could even travel to a neighbouring country with better medical care.

What Vietnam lacks in infrastructure, it more than makes up for in cuisine. Vietnam has some of the best street food and fresh seafood in the world, and all for a fraction of the cost you would pay in North America.

• Estimated monthly cost: $1,000 to $1,500
• Healthcare: Affordable private medical care
• Why retirees love it: Extremely low costs, incredible food and world-class beaches
• Visa requirements: There is no official retirement visa in Vietnam. Some retirees cycle in for three-month periods on tourist visas, then either return home or live elsewhere before returning to Vietnam.

Colombia

South America has long been a popular tourism destination for beach lovers and backpackers. In recent years, Colombia has transformed into a popular expat destination due to its year-round warm weather, picturesque landscapes and modern amenities.