Let’s Explore the Most Affordable, Safest & Popular Places to Retire in 2025!
As retirement approaches, many Brits dream of exchanging the grey skies of the UK for a more relaxed, sun-filled lifestyle abroad.
Lower living costs, improved quality of life and unique cultural experiences often top the list of motivations for moving abroad. But where can you retire that’s affordable, safe and comfortable in 2025?
This blog covers the most affordable countries to retire to, the safest retirement havens and the cheapest options on each continent.
Table of Contents
- What are Some of the Most Affordable Countries to Retire to in 2025?
- What are the Safest Countries to Retire to in 2025?
- The Most Affordable Locations to Retire to: By Continent
- Where do Brits Retire to the Most?
- The Most Affordable Countries to Retire to in 2025: A Summary
What are Some of the Most Affordable Countries to Retire to in 2025?
Below are some of the most affordable destinations for Retirees to consider in 2025.
We outline average expenses and a little more insight into why the location is already a hit in retirees’ eyes…
Affordable and Vibrant: Mexico
Average Monthly Expenses for an Individual: £570 (excluding rent)
Average Monthly Expenses for a Couple: £1,500 (including rent)
Mexico has long been a favourite for North Americans, but the country is increasingly attracting the Brits seeking the perfect blend of affordability, warm climate and vibrant lifestyle.
Cities like Merida and Puerto Vallarta are particularly appealing, offering lively cultural scenes that feature everything from traditional markets to international art galleries. The country’s warm climate varies by region, from the tropical beaches of the Yucatán Peninsula to the more temperate highlands in cities like San Miguel de Allende.
Retirees benefit from world-class healthcare at a fraction of UK costs, with access to both affordable private clinics and the IMSS public healthcare system. Housing is another major draw, whether you’re planning on renting or purchasing, properties are more affordable than in the UK, with everything from charming colonial homes and beachfront condos available at reasonable prices.
Mexico's Highlights as a Place to Retire:
- Mexico's proximity to the UK via direct flights.
- The country has a diverse expat community for socialising.
- Mexico's family-orientated culture that retirees find welcoming.
The county’s variety of landscapes, from tranquil beach towns to busier urban hubs, ensures there’s something for everyone, whether you’re seeking quiet coastal living or a more social lifestyle. Combined with Mexico’s rich history, world-famous cuisine and opportunities for travel within Latin America, Mexico presents an affordable yet enriching retirement option.
Warm and Familiar: Gibraltar
Average Monthly Expenses for an Individual: £724 (excluding rent)
Average Monthly Expenses for a Couple: £1,309 (excluding rent)
Situated on the southern tip of Spain, Gibraltar offers a unique blend of Mediterranean lifestyle and British familiarity. Its warm climate, with over 200 days of sunshine a year, makes it the ideal location if you’re looking to escape the dreary UK weather. English being the official language and the presence of a familiar legal and financial system make the transition seamless for British retirees.
For retirees in particular, Gibraltar stands out with its tax-friendly policies, including a standard tax rate of 20%, and no capital gains or inheritance tax, which can significantly ease financial planning in your golden years.
Although property prices are sometimes higher than the other locations we’ll cover, Gibraltar compensates with a high standard of living, excellent healthcare facilities, and proximity to the stunning Andalusian region of Spain.
Gibraltar's Highlights for Retirees:
- The flight from the UK to Gibraltar is less than 3 hours.
- Gibraltar offers a beautiful, walkable cityscape.
- Gibraltar's community feels like a slice of Britain abroad.
Retirees also benefit from Gibraltar’s strategic location, allowing for short trips to nearby Spanish cities, or even across the Mediterranean to Morocco, offering a lifestyle filled with adventure and cultural variety.
Exotic and Budget Friendly: Thailand
Average Monthly Expenses for an Individual: £423 (excluding rent)
Average Monthly Expenses for a Couple: £750 (excluding rent)
For retirees seeking an exotic yet budget-friendly lifestyle, Thailand is unbeatable.
The country offers a captivating blend of culture, tropical landscapes and incredible affordability. Chiang Mai in the north stands out as a retirement hotspot, known for its tranquil atmosphere, rich history and welcoming expat community. Thailand’s temperate climate and lush surroundings allow retirees to enjoy a relaxed pace of life surrounded by nature.
The cost of living in Thailand is remarkably low, allowing retirees to stretch their pensions further. Rent for a comfortable apartment can start at just £250 per month, while dining out at local restaurants is very inexpensive with meals costing as little as £2. Private healthcare is both affordable and of high quality, with world-class hospitals in cities like Bangkok and Chaing Mai offering treatments at a fraction of UK prices.
Thailand’s Highlights for Retirees:
- Thailand's climate is warm year-round.
- The cuisine in Thailand is infamously delicious and varied.
- The country offers diverse lifestyle options.
The country’s strong sense of hospitality ensures retirees feel welcomed, and activities such as yoga, meditation retreats and local festivals add to its overall charm. For those seeking adventure, Thailand’s proximity to other Southeast Asian countries makes it a perfect base for regional travel, offering an enriching and affordable retirement experience.
One of Europe's Most Affordable: Portugal
Average Monthly Expenses for an Individual: £574 (excluding rent)
Average Monthly Expenses for a Couple: £2,027 (excluding rent)
Portugal remains one of Europe’s most affordable countries for retirees in 2025, offering an appealing trifecta of lifestyle, climate and affordability.
The Algarve, with its breathtaking coastline, charming fishing villages and over 3,000 hours of sunshine annually, is a haven for those seeking a relaxed pace of life. Retirees can expect to enjoy a Mediterranean lifestyle complete with fresh seafood, outdoor markets and unforgettable cultural festivals.
Additionally, the Non-Habitual Residency (NHR) tax regime is a significant draw, allowing new residents to benefit from reduced tax rates, or even tax exemptions for up to 10 years, which greatly enhances financial security.
Housing remains affordable, with rental and purchase prices far lower than in many parts of the UK. Similarly, healthcare in Portugal is both excellent and affordable, with access to a high-quality public healthcare system and private options that are tailored to international residents.
Portugal's Highlights for Retirees:
- Portugal is infamous for its welcoming locals.
- English is spoken commonly across Portugal.
- Portugal's location makes it easy to travel to other locations in Europe.
Whether strolling along golden beaches, sipping on local wine or exploring historic towns, Portugal offers an idyllic and affordable retirement experience.
Rich in Culture and Diverse: Colombia
Average Monthly Expenses for an Individual: £402 (excluding rent)
Average Monthly Expenses for a Couple: £705 (excluding rent)
Colombia’s charm lies in its extraordinary diversity, offering something for every type of retiree. From the bustling, cosmopolitan cities of Medellín and Bogotá to the lush coffee regions of Salento, Colombia delivers a lifestyle rich in culture, natural beauty and opportunities for adventure. Medellín, known locally as the “City of Eternal Spring”, boasts a mild, year-round climate, modern infrastructure and dynamic expat community, all make it the perfect choice for retirees.
Affordability is a strong selling point for Colombia, as rent is particularly inexpensive, with modern apartments in prime locations often costing less than £400 per month. Healthcare is another highlight, as Colombia’s private healthcare system is renowned for its high quality and affordability, consistently ranking among the best in Latin America.
Colombia's Highlights for Retirees:
- Colombia's history provides enriching surroundings.
- The country is known for having hospitable locals.
- Colombia is full of diverse, breathtaking landscapes.
Colombia’s Pensionado Visa makes it incredibly easy for retirees to settle. With a qualifying monthly income as low as £700, this visa allows retirees to enjoy residency and access to the country’s vibrant lifestyle.
The warm and welcoming locals, known for their hospitality, further enhance the appeal of living here. Whether you’re looking for a tranquil rural retreat or a dynamic urban environment, Columbia offers retirees an affordable and fulfilling lifestyle.
What are the Safest Countries to Retire to in 2025?
Safety is often a top priority for retirees, as a secure environment provides peace of mind and enhances overall quality of life.
Here are the top countries that stand out for their combination of low crime rates, excellent healthcare systems and reliable infrastructure:
Peace of Mind for Retirees: Iceland
Consistently ranking as one of the safest countries in the world, Iceland offers unparalleled peace of mind for retirees. Its low crime rates, political stability and strong social safety net all contribute to a sense of security that is hard to find anywhere else. While it’s not the cheapest destination, the country compensates with its natural beauty, complete with glaciers, geysers and volcanoes, which make everyday living feel extraordinary.
If you’re looking for peace combined with safety and a unique style of living, Iceland is an exceptional choice.
Iceland's Highlights for Retirees:
- Iceland has geothermal energy resources which allow for sustainable living.
- The country has a vibrant cultural scene from museums to music festivals.
- Iceland is known for its culinary innovations and high-quality ingredients.
Low Crime Rates and Breathtaking Views: New Zealand
Known for its low crime rates, political stability and breathtaking scenery, New Zealand is a haven for retirees seeking safety.
The country’s diverse landscapes, including the Southern Alps, pristine beaches and rolling vineyards offer endless opportunities for outdoor activities such as hiking, kayaking and golfing. If you value an active lifestyle, New Zealand is the perfect retirement destination for you!
New Zealand's Highlights for Retirees:
- The country's temperate climate means mild winters and warm summers.
- New Zealand has an English-speaking population, making integration easier.
- The country has a reputation for clean air, sustainability and a slower pace of life.
Cleanliness and World-Class Healthcare: Switzerland
With a reputation for safety, cleanliness and world-class healthcare, Switzerland stands out as a premier retirement destination. The country’s meticulous infrastructure ensures a high standard of living, with efficient public transport, pristine streets and reliable services. Retirees can expect to enjoy a relaxed and serene lifestyle amidst some of the most stunning alpine landscapes in the world, ranging from snow-capped peaks to serene lakeside villages.
Switzerland's Highlights for Retirees:
- With four official languages - German, French, Italian and Romansh - the cultural diversity in Switzerland is unparalleled.
- Switzerland's central location in Europe allows for seamless travel to neighbouring countries.
- The country's healthcare system is recognised globally for its quality.
The Most Affordable Locations to Retire to: By Continent
Europe
Here are some of the most affordable destinations to retire to, in Europe:
- Bulgaria: With a low cost of living and affordable property prices, Bulgaria is a hidden gem for retirees. Monthly expenses for a couple can be as low as £800.
- Romania: Offering a blend of medieval charm and modern amenities, Romania provides retirees with incredibly low living costs, with monthly expenses averaging £900 for a couple.
- Portugal: Beyond the Algarve, smaller cities like Coimbra and Évora offer equally affordable living with rich cultural experiences.
Asia
Below are some of the most affordable places to retire to, in Asia:
- Vietnam: Offering a mix of vibrant cities and serene countryside, Vietnam’s cost of living is among the lowest in Asia. A couple can live comfortably for around £1,000 per month.
- Malaysia: Known for its modern infrastructure and excellent healthcare, Malaysia offers a comfortable lifestyle for around £1,200 per month.
- Sri Lanka: With its tropical landscapes and laid-back atmosphere, Sri Lanka is an affordable paradise, where retirees can live well for under £1,000 per month.
South America
Other affordable places to retire in South America, other than Colombia, include:
- Ecuador: Known for its welcoming expat community, Ecuador offers affordable housing, low healthcare costs, and a temperate climate. A couple's monthly expenses average £1,200.
- Peru: Beyond its ancient wonders, Peru offers low living costs and a unique cultural experience. Couples can live comfortably for around £1,000 per month.
- Argentina: Particularly in smaller cities like Mendoza, retirees can enjoy a high quality of life with wine-country charm for around £1,200 per month.
North America
Other countries to consider in North America for retirees in 2025 include:
- Belize: English-speaking Belize offers a tropical, laid-back lifestyle with low living costs averaging £1,000 per month for a couple.
- Panama: Known for its retiree-friendly visa programs and modern amenities, Panama is an affordable option with costs of around £1,200 per month.
Africa
Not mentioned above, but, places in Africa could also be a consideration for those looking to retire abroad, some notable mentions:
- Morocco: Morocco offers a unique blend of cultural richness and affordability. Monthly living costs can be as low as £800 for a couple.
- South Africa: Coastal cities like Port Elizabeth or George combine stunning scenery with affordable living, averaging £1,000 per month.
- Namibia: Known for its breathtaking landscapes and peaceful atmosphere, Namibia offers low-cost living at around £900 per month.
Where do Brits Retire to the Most?
According to data from 2024, Spain remains the top destination for British retirees. The Costa del Sol and Costa Blanca are particularly popular, thanks to their sunny climates, affordable housing, and established expat communities. Spain’s proximity to the UK and accessible healthcare system under the EU’s S1 scheme, for retirees with a UK pension, are also key factors.
Other top destinations include:
- France: Especially the Dordogne and Provence regions.
- Portugal: The Algarve's charm and tax benefits make it a strong contender.
- Australia: Many Brits choose to retire to Australia to join family or enjoy its sunny climate and high quality of life.
- Gibraltar: The British connections, warm weather, and tax benefits attract a smaller but significant number of retirees.
The Most Affordable Countries to Retire to in 2025: A Summary
Retiring abroad in 2025 offers endless possibilities for adventure, relaxation, and a better quality of life.
Whether you’re drawn to the Mediterranean charm of Gibraltar, the tropical allure of Thailand or the safety of New Zealand, there’s a destination for every budget and preference. With careful planning and an eye for the details, your dream retirement could be just a plane ride away.
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