In this article, we will take a look at the 12 best cities to retire in Central America.

The Financial State of Retirees

Are you afraid of outliving your assets? 70% of Americans today feel financially stressed, reports CNBC. They are working longer, spending less, increasing their stock exposure, and delaying claim on social security benefits. While these endeavors may be well-intentioned, without planning, they are merely blind attempts. As such, failure to adequately plan is a significant retirement blunder by retirees, leading them to save insufficiently for their golden years.

As a result, millions of Americans today are nearing their golden years financially unprepared. The US Census Bureau data notes that 50% of women, and 47% of men between ages 55 and 66, have no retirement savings at all. While saving for retirement is a must, AARP highlights that nearly 57 million Americans work for employers without a retirement savings plan.

Only 14 US states today have state-facilitated payroll deduction retirement savings or “Work & Save” programs for their employees. Such retirement savings plans are a convenient way for individuals to save for retirement. Savings ensure retirees have additional resources beyond their social security. It must be noted here that average social security benefits are only $1,600 a month, while average monthly expenditures for those 65 or older easily hover around $4,345. The grave disparities between income and expenditure have led many seniors to live below poverty line in the USA. The latest US Census Bureau data highlights that poverty among Americans aged 65 or older has increased from 8.9% in 2020 to 10.3% in 2021.

In order to retire comfortably, corporations such as Morgan Stanley (NYSE:MS), The Charles Schwab Corporation (NYSE:SCHW), and BlackRock, Inc. (NYSE:BLK) can help retirees take the right steps. Retirement solutions at Morgan Stanley (NYSE:MS) help individuals, families, and institutions reach their financial goals. Similarly, The Charles Schwab Corporation (NYSE:SCHW) and BlackRock, Inc. (NYSE:BLK) can help employees open Individual Retirement Accounts, or IRAs, for funding retirement years.

All three corporations, Morgan Stanley (NYSE:MS), The Charles Schwab Corporation (NYSE:SCHW), and BlackRock, Inc. (NYSE:BLK), are also good stocks to invest in, considering the aging baby boomer population being one of the factors for rising demand of financial services.

Retiring in Central and South Americas

Considering the lack of retirement funds and the graying demographics in parts of the USA, many retirees are considering relocation to cheaper areas such as the South. Apart from the South, there are plenty of affordable places to retire on the East Coast. For those looking to move away from the US, another possible option on many retiree’s radars is Central America. Moving to Central America has many advantages for retirees. For starters, the cost of living is lower compared to many Western nations. The climate is pleasant and warm throughout the year too.

Moreover, many countries, such as Panama and Costa Rica, have reputable healthcare systems. The process for obtaining residency is easy, and there are ample opportunities to explore the outdoors. International Living rates Panama as the cheapest and safest place to live in Central America. Retiring in Panama can also help individuals stretch their dollar incomes, with the cost of living as affordable as $1,200 a month.

While Central America is one of the cheapest places for retirement, South America can also be a good place to consider for affordable living. Some of the best places in South America to live include Buenos Aires, Argentina; Lima, Peru; Quito, Ecuador; Rio de Janeiro, Brazil; and Florianopolis, Brazil. However, amidst all these places, Bolivia ranks as South America’s cheapest place to retire. Living in Bolivia is as cheap as $20 a day.

Methodology

In order to compile the list of best cities to retire in Central America, we used 4 (1,2,3,4) sources. We also gathered opinions from expat retirees on the best cities for retirement in Central America on forums such as Reddit and Quora. After gathering the cities recommended, we ranked them based on their monthly cost of living (for the individual) sourced from LivingCost.org, amongst others. Next, cities are ranked in descending order from the highest to the lowest cost of living expenses.

Here are the 12 best cities to retire in Central America:

12. Coronado, Panama

Cost of living: $2,500

Coronado, Panama, is one of the best cities for retirees and expats in Central America. The popular beach town is located on the Western Coast of Panama, 90 minutes away from Panama City. It has pristine beaches, a warm coastal climate, and plentiful beachfront properties. Coronado, Panama, has undergone a remarkable transformation, thanks to a thriving expat community.

Moreover, it has evolved into a sophisticated and upscale beach resort. The city is often regarded as the epicenter of beach life, with affordable properties and developed infrastructures in place.

The cost of living is affordable and costs a maximum of $2,000. A one-bedroom apartment can range between $500-$800, while nicer rentals will range between $1,000-$1,800. Plenty of hospitals and clinics are spread throughout the city, and the quality of medical care is comparable to the United States. Overall, it is one of Panama’s safest and cheapest places to retire.

11. Antigua, Guatemala

Cost of living: $1,550

One of the most beautiful cities to retire in Guatemala is Antigua. An ideal year-round climate, picturesque scenery, and affordable living costs make it a desirable retirement destination for expats. Antigua has been fairly successful in preserving its colonial architecture, which grants it a unique allure, along with its cobbled streets and beautiful landscapes.

Antigua, Guatemala, is also considered a safe destination for retirees. Valleys, mountains, and hills surround the beautiful valley. Moreover, even though the city is expensive compared to Guatemala’s standards, it is cheaper compared to the United States’. The average cost of living is only $1,550, with retirees affording luxuries far more easily than they could have in the States.

10. Corozal, Belize

Cost of living: $1,500

Retirees wishing to escape the hustle and bustle of big cities can choose to retire in Corozal, Belize. The city offers a laid-back lifestyle, an affordable cost of living, and a wide array of outdoor activities to enjoy. Residents like to spend time on the Corozal Bay, engaged in activities such as swimming, fishing, and snorkeling. The cost of living in Corozal, Belize, is inexpensive, and expats can easily afford to live in the city for under $1,500 a month.

Renting an apartment costs between $200-$500, while meals cost $5 to $10 on average. Buying a house is also affordable, with two-bedroom homes costing between $50,000 to $100,000. However, the city offers limited access to quality healthcare facilities and shopping choices. That said, just a half-hour away, across the border in Chetumal City, Mexico, you’ll find an abundance of modern hospitals and a wide range of shopping options.

9. Chitré, Panama

Cost of living: $1,500

Several reasons bring Chitré, Panama, on our list of best cities for retirement in Central America. For starters, the bustling town emits a lively ambiance that is hard to resist. There are ample supermarkets, restaurants, pharmacies, car rentals, and a multi-level shopping mall for residents. Costs of living, housing, and healthcare are all pretty affordable for retirees, another plus for moving to the city.

Retirees can expect to live comfortably under $1,500. The cost of living includes rent, groceries, food, utilities, and also transportation. Two-bedroom homes cost about $350 a month, meals cost as low as $4, and utilities are also very reasonable. The city has two public and private hospitals each, as well as labs, medical and dental clinics. Overall, it is a safe and cheap city to retire.

8. Roatan, Honduras

Cost of living: $1,500

The vibrant culture, affordable living costs, and plentiful recreational opportunities make Roatan one of Central America’s most desirable locations to retire. Expats cite “feeling safe, and at home” living here. The people are warm and friendly, the food scene is amazing, and residents love it for its original and fascinating culture.

The cost of living is low, with expats living comfortably on as low as $1,500. The city also boasts good private healthcare facilities with qualified physicians, most of whom have studied in the US. Overall, it’s a tropical paradise lined with white, sandy beaches, natural areas, beach and market towns alike.

7. Tamarindo, Costa Rica

Cost of living: $1,405

Tamarindo, Costa Rica, is a bustling beach hub offering miles of golden sand and a picturesque palm tree-lined beach. Beyond the palms, residents find themselves in the hustle and bustle of its charming main road. The beachfront in Tamarindo is decked with an array of establishments, including vibrant bars, exquisite restaurants, relaxing spas, reputable real estate offices, and charming souvenir stores. Together, they create an enchanting paradise-like atmosphere that captivates visitors and locals alike.

Nestled on the picturesque Nicoya Peninsula, this location offers residents a unique advantage – access to Nicoyan water, renowned for its abundant calcium content. With this natural elixir at their disposal, residents can fortify their bones and potentially reduce their risk of heart disease, making it an ideal place for a healthy and vibrant lifestyle.

6.  Placencia, Belize

Cost of living: $1,350

Placencia, Belize, has made it to our list of Central America’s best cities to retire in, and it’s no wonder why. With its near-perfect weather, idyllic surroundings, and laid-back lifestyle, the allure of this coastal gem is irresistible to those seeking a peaceful retirement experience. The best thing about retiring to this town is that retirees can live as cheaply as they desire. On average, an expat retiree’s cost of living is $1,350.

5. Panama City, Panama

Cost of living: $1,272

Bustling with expats, Panama City is a wonderful retirement destination for retirees. It is one of the most modern cities in Central America, offering its residents a warm climate, modern infrastructure, and natural beauty. The vibrant metropolitan city has all the big-city amenities and conveniences, including its only metro system in Central America.

Another thing Panama City is famous for is its world-class healthcare facilities. Internationally accredited hospitals and clinics throughout the area, such as Hospital Punta Pacifica, Paitilla Hospital (Centro Médico Paitilla), ensure retirees have access to state-of-the-art medical services. Various residency programs have made it relatively easy to retire in Panama City, Panama.

4. San José, Costa Rica

Cost of living: $1,077

Beautiful scenery, affordable costs of living, and vibrant culture make San Jose, Costa Rica, one of the best cities to retire in Central America. The expat community is well-established, the climate is wonderfully pleasant, and the overall infrastructure is great. Retirees usually join clubs or organizations, such as Costa Rican-North American Cultural Center, and the American-Costa Rican Association, to keep busy. Both of these clubs allow expats to keep connected with their culture.

The cost of living is pretty affordable at $1,077 per month. Rent in the city is 71% lower than in the United States. Even though San Jose is one of the largest and most expensive cities in Costa Rica, one-bedroom apartments cost only as much as $750. Basic utilities cost an additional $90, while Internet and Wi-Fi can cost around $50. Overall, San Jose is a safe and cheap city for expat retirees.

3. Belize City, Belize

Cost of living: $1,000

Belize, the only English-speaking country in Central America, is an ideal retirement destination for many. Belize City, in particular, makes it to our list of top cities to retire. Home to the only international airport in the country, the city houses a diverse community, and most of the locals are friendly and welcoming.

The city also embraces a warm climate, and is blessed with pristine beaches, luxurius rainforests, and an abundance of marine life. The cost of living in the city is higher than in most Caribbean countries. However, expats will find it cheaper than their own home country’s living expenses. An expat can retire comfortably in the city for as low as $1,000.

2. Heredia, Costa Rica

Cost of living: $850

Known as the “city of flowers,” Heredia is one of Central America’s best cities to retire. The beautiful city is located 10km from Northern San Jose, at the foothills of Brava Volcano (now extinct). The city’s enchanting allure stems from its lush, beautiful gardens and abundant flora. The city also boasts the highest life expectancy rate in the country at 84, thanks to the quality of life in the small city.

Heredia is one of the most affordable places to retire, with costs of living as low as $850. Its mild, tropical climate is also a plus when choosing this city. Moreover, the city offers plenty of amenities to its residents, such as restaurants, shopping centers, cultural attractions, as well as theaters and museums. Overall, it is a nice place to choose for retirement.

1. Granada, Nicaragua

Cost of living: $700

Those retiring to Granada, Nicaragua, will find themselves amidst a huge, welcoming expat community. The plentiful recreational opportunities will fill up their calendars, and they will be able to enjoy a fulfilling retirement period. Restaurants will serve your favorite dishes, as well as Nicaraguan delicacies.

The city’s cost of living is as low as $700, and retirees will have plenty to spend on luxuries. Furnished apartments, Wi-Fi, food, entertainment, and other luxuries are all affordable for far under $1,500. Overall, it is a safe and cheap city to retire in Central America.

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Disclosure: none. 12 Best Cities to Retire in Central America is originally published on Insider Monkey.