William Smith, 68, has no regrets about his life-changing move to Thailand. In fact, he has discovered his life as an expat to be fairly comfortable and remarkably cost-effective as compared to his lifestyle back in the United States.
With a monthly budget of just $700, William not only manages to cover his living expenses, but also sets aside savings from his social security income. He has secured a decent place for himself in central Chiang Mai for a modest $170 per month, with a nice big bedroom, a full-size bathroom, and even a fridge. Utilities cost him a mere $200, and the rest he gets to spend on food, transport, and leisure activities. William’s cost-effective lifestyle in Chiang Mai stands as a testament to the quality of retirement he enjoys.
In stark contrast, 47 million households with older adults in the USA are facing financial struggles today. As the Social Security Administration notes, 65-year-olds, on average, are expected to live another 20 years, setting the stage for a concerning reality for millions. These individuals are increasingly at risk of falling into a retirement security crisis, as savings diminish, inflation escalates, and requiring long-term care becomes increasingly probable. What makes this predicament even more challenging is that household budgets have gone up by more than what the 3.2% Cost-of-Living-Adjustment (COLA) can adequately address.
The Senior Citizens League notes that between January 2021 to December 2022, average social security benefits have been falling short of inflation by roughly $1,504. To quote an example, many seniors who shop for groceries at Walmart Inc. (NYSE:WMT) are now sticking to brands by Walmart Inc. (NYSE:WMT) only. Popular stores such as Dollar Tree, Inc. (NASDAQ:DLTR) and Dollar General Corporation (NYSE:DG) are picking up market share as well when it comes to shelf-stable foods like canned beans and pasta, with many seniors behind these purchases. Moreover, Walmart Inc. (NYSE:WMT) doesn’t have the lowest prices for items such as personal care, Goli vitamins and supplements, canned beans and chicken broth, and even cleaning supplies; items that seniors shop cheaper at Dollar Tree, Inc. (NASDAQ:DLTR) and Dollar General Corporation (NYSE:DG) instead.
An estimated 20% of seniors have also been reported to cut back on medication, because of a lack of funds. This situation is compounded by the fact that Medicare premiums and out-of-pocket costs rise dramatically during retirement, further straining the financial resources of retirees. In lieu of this, HealthView projects that by a time a couple reaches 85, healthcare costs are going to consume 92% of their total benefits. Even with Medicare coverage, an average 65-year old could spend an average $157,500 on healthcare costs throughout their retirement period. Over the next several years, inflation will likely drive these health costs higher than any other category that retirees spend on.
Due to the rising costs for retirees, saving on every dollar can make a huge difference. Shopping at dollar stores, particularly Dollar Tree, Inc. (NASDAQ:DLTR) and Dollar General Corporation (NYSE:DG), can allow retirees to save sufficiently. Customers have reported saving as much as $300 when shopping at these stores.
Nevertheless, costs are still rising, and have been further pushing retirees to make bold moves in order to ease their financial woes. Based on a survey by The Senior Citizens League involving 1,055 lower to middle-income retirees, 26% respondents were found to have depleted their retirement accounts in Q1 2023. 45% of the respondents also had credit card debt for more than 90 days. This is only a glimpse of the cost-of-living crisis that individuals, particularly fixed-income groups, are facing in the USA.
For such individuals, countries with a low cost of living and high quality of life present a significantly appealing choice to live their years. Hungary, Indonesia, Chile, and Vietnam are some of the cheapest and safest places to live in the world.
Striking the Balance between Safety and Affordability
Seeking an affordable country to live as an expat goes beyond mere consideration of its cost of living. Expats, especially retirees, equally prioritize factors such as healthcare, safety, and overall quality of life. Otherwise, they would settle for the cheapest country to live in, like Syria. The cost of living in the country is 64.1% lower than in the United States. Other countries that have a low cost of living include Pakistan, Egypt, India, Bolivia, Sri Lanka, and Colombia, to name a few.
As many already know, expats aren’t motivated to move to these countries as they don’t make the cut in terms of safety and healthcare. According to the Global Peace Index Report 2023, Syria ranks at 161 out of 163 countries, signifying an exceptionally low peace ranking for the nation. Pakistan ranks at 146 out of 163 countries, also a notably low ranking in terms of peace. Egypt is ranked 121st, Sri Lanka is positioned at 107th, and Bolivia secures the 78th spot, all falling into the medium category in terms of peace rankings.
All of these countries have a GPI score above 2, suggesting low levels of peace and stability within them. Since expats prefer countries that are safe for them to spend their lives, these countries don’t seem to be good choices. Instead, some of the cheapest and safest places to live in include Romania, Chile, and Vietnam. Not only do these countries offer affordable living, but also a good quality of life. To learn more about which cities and towns, in particular, are the cheapest and safest to live in, read on below.
25 Cheapest and Safest Places to Live in The World
Rusu Dumitru Costinel/Shutterstock.com
Methodology
To compile the list of cheapest and safest places to live in the world, we used our previous list of cheapest and safest countries. The list ranked countries based on their cost of living index and global peace index rankings, as sourced from Numbeo and Global Peace Index Report 2023. Next, we selected 3 places from each country and ranked the final list on their peace and cost of living indices. Scores were averaged and the final Insider Monkey Score was used to list places on our list.
Monthly costs of living for an individual expat include rent for a one-bedroom apartment, utilities, food, and miscellaneous expenses. We have also mentioned the average healthcare insurance that an expat would require in the country. Some countries have made this health insurance obligatory, while many others haven't. On average, international healthcare insurance costs $500 per month.
Here are the cheapest and safest places to live in the world:
25. Sofia, Bulgaria
Insider Monkey Score: 4
One of the cheapest capitals of Europe, Sofia in Bulgaria is not only affordable but also quite safe. The monthly cost of living for an individual expat is $1,500, which includes national healthcare insurance that costs an estimated 24 BGN ($13) per month.
24. Valdivia, Chile
Insider Monkey Score: 4
Known as the “Beer Capital of Chile”, Valdivia is a beautiful city filled with bridges and waterways. The overall cost of living here is approximately $1,000, with expatriate healthcare insurance accounting for $45 of this amount.
23. Jakarta, Indonesia
Insider Monkey Score: 4.14
Jakarta, the capital of Indonesia, is a vibrant city for expats boasting vast cultural experiences, a well-established expat community, and modern healthcare facilities. Expats usually live in areas such as Kemang, SCBD, or Senopati. The monthly cost of living in Jakarta is $1,200, including around $100 for healthcare insurance.
22. San Pedro de Atacama, Chile
Insider Monkey Score: 4.29
San Pedro de Atacama, a popular spot in South America, might be particularly appealing to expat retirees who appreciate natural beauty such as the Atacama Desert, the dry and sunny climate, and also its peaceful lifestyle. The monthly cost of living for an individual retiree is an estimated $1,000.
21. Shkod?r, Albania
Insider Monkey Score: 4.41
From its friendly locals to its vibrant culture, Shkod?r is a safe place for expats to live. The healthcare system is adequate in the country, and international health coverage is usually not needed if the expat is covered by the local system. The monthly cost of living for an individual expat is $1,100.
20. Chisinau, Moldova
Insider Monkey Score: 4.42
Brimming with history and culture, Chisinau is another economic choice for expats. The total cost of living in Chisinau, Moldova is $1,077, with an additional $500 required for international healthcare insurance (if desired).
19. Bucharest, Romania
Insider Monkey Score: 4.43
Also known as “Little Paris,” Bucharest is one of the cheapest and safest places to live in the world. The total cost of living in the country is $1,395, and expats have access to free medical care. However, private healthcare insurance costs an additional $30, on average.
18. Budapest, Hungary
Insider Monkey Score: 4.71
As one of the best English-speaking places to retire in Europe, Budapest seems to be an ideal choice for many. The total cost of living in the capital is $1,575, and an additional $70 is required for private healthcare insurance.
17. Tamarin, Mauritius
Insider Monkey Score: 4.71
Embraced by beautiful mountains and a black sand beach, Tamarin is a popular place for tourists and expatriates. Individuals get to enjoy a good quality of life here. The monthly cost of living for an individual is $1,400. Public healthcare is free for all residents, while monthly costs for private expat health insurance are an additional $200, on average.
16. Accra, Ghana
Insider Monkey Score: 4.86
One of the best places to retire in Africa, Accra, in Ghana, is known for its vibrant culture, friendly people, and affordable cost of living. On average, the monthly cost of living for an individual expat is $1,000. Moreover, international healthcare insurance costs an additional $500 on average.
15. Port Louis, Mauritius
Insider Monkey Score: 4.86
Mauritius generally enjoys a low crime rate as well as an affordable cost of living. Port Louis, in particular, enjoys picturesque beaches and lush landscapes, and is also the cultural and economic hub of the country. On average, the monthly cost of living for an individual expat is $1,500 which includes expat health insurance.
14. Varna, Bulgaria
Insider Monkey Score: 4.86
Scoring high on the Global Peace Index 2023, Bulgaria is one of the cheapest and safest places to live in the world. The beautiful coastal city boasts an affordable cost of living, with an individual expat living comfortably at $1,300 per month (on average).
13. Ulaanbaatar, Mongolia
Insider Monkey Score: 5.29
Ulaanbaatar is considered a safe country and boasts an affordable cost of living as well. The capital is considered as the country's economic, political, and cultural center, with very friendly locals. On average, the monthly cost of living (including private expat healthcare insurance) is $1,500.
12. Timi?oara, Romania
Insider Monkey Score: 5.43
Timi?oara, in Romania, is one of those places where expats can even live on $1,000 a month. The cultural scene is thriving, natural beauty abundant, and healthcare quite modern. On average, the monthly cost of living for an individual expat is $1,100, including private healthcare insurance.
11. Tirana, Albania
Insider Monkey Score: 5.57
One of the best places to live as an expat is Tirana, the capital of Albania. Deemed as Europe's up-and-coming markets, Tirana offers modern amenities and an urban lifestyle. On average, the monthly cost of living for an individual is $1,200. Expats can also buy international healthcare insurance for an additional $500 on average per month.
Disclosure: The name, William Smith, mentioned in this article is fictional and has been used in place of the real name to protect the individual's privacy and confidentiality. 25 Cheapest and Safest Places to Live in The World is originally published on Insider Monkey.
