This article takes a look at the best places to retire in Puerto Rico.

Exploring Alternatives to the American Dream

The Sunshine State is no longer the number one retirement destination in the US- cities in Florida are getting too expensive for retirees, and with limited incomes and smaller dreams, new states are claiming the throne as the best to retire in 2024. Nevertheless, retirees continue their quest for destinations that are reminiscent of Florida, often finding themselves drawn to Puerto Rico in the process.

With that said, more and more retirees are thinking of a retirement outside the US. This is because the last of the 73 million Baby Boomers are turning 65 in the next seven years, and the retirement landscape in the US for them looks anything but promising.

“You’re probably going to have an increase in the poverty rate. People are retiring, some quite early, and retiring with very little. Baby boomers just don’t have enough savings. And Social Security is just not gonna be that big for lots of people”.

– Retirement planning evangelist Laurence Kotlikoff

Considering the bleak future of retirees, it isn’t surprising that Americans over 75 are the fastest-growing age group in the workforce. This number is even expected to double in the next decade, notes Pew Research Center. Americans aren’t making enough to save for retirement, and that simply means they can’t stop working either. BlackRock, Inc. (NYSE:BLK) CEO Larry Fink seems to agree. In a BlackRock, Inc. (NYSE:BLK) 2024 letter to investors, Fink asserts how the US retirement system has put undue pressure on employees deciding on how much they need to save or invest. The cost of living has been rising across the States, which means Americans don’t exactly know how much they will be needing for retirement anyway.

While Social Security is there to help supplement your retirement income, it’s not much if that’s all that you’re relying on.

“Social Security is a fantastic foundation for retirement..But if that’s all you have when you retire, you’re going to be living below the poverty line. It’s supplemental but it’s not meant to be the totality of what you have in retirement”.

-Larry Fink, CEO, BlackRock, Inc. (NYSE:BLK)

Exhausted and frustrated, retirees often look for retirement destinations outside of the US to spend their golden years. Puerto Rico, a Caribbean Island and unincorporated US territory, seems like an easy option for many. Brimming with mountains, beaches, and waterfalls, this island is a beautiful destination to retire considering its tropical climate, natural beauty, and affordability. According to the US Census Bureau, over 18% of the population on the island is over 65, which means it is one of the top destinations with a large senior population.

Since Puerto Rico is an unincorporated territory of the US, US citizens do not need a visa to move there. However, they still need to follow local laws regarding residency, taxation, and employment. But is retiring to Puerto Rico a good idea? Our research says it depends on who you’re asking. Beach lovers, nature enthusiasts, and those looking for a change of scenery would love the idea of moving to Puerto Rico, and that too at a lower cost of living. An individual retiree can live a comfortable life on the island between $1,500 to $2,000.

Some retirees, however, maybe a little afraid because of the island’s susceptibility to hurricanes. This is one of the biggest disadvantages of living on the Island. As such, the part of Puerto Rico that is safest from hurricanes maybe the western coast. This part of the island is protected by the Mona Passage, a water body between Puerto Rico and the Dominican Republic. However, the entire Puerto Rico is small which means hurricanes affect the island regardless of the category. This is one the risk retirees should be prepared to take on, and should also be prepared to pay more for insurance. Other things that are not as competitive as in the US are healthcare and transport. On a lighter note, residents believe the upside to these disasters is that Puerto Rico is getting better infrastructure after each devastation.

With that sorted, let’s check out all the where do American expats live in Puerto Rico, and all the best places to retire on the Caribbean Island:

Methodology

To compile the list of best places to retire in Puerto Rico, we used several sources such as UnBiased, Offshore Protection, Smart Asset, and Expat. We also used expat forums such as Reddit and Quora to identify some of the best places highlighted by retirees who live on the island. A consensus approach was used to rank the places, and the median home prices and cost of living were also factored in to generate a final Insider Monkey Score. Median home prices for our rankings have been sourced from Realtor. Places have been ranked in an ascending order from the lowest to the highest scores.

By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.

Here are the best places to retire in Puerto Rico:

12. Dorado

Insider Monkey Score: 13

Median listing home price/Sq ft: $588

Situated on the northern coast of Puerto Rico, Dorado is an upscale retirement destination for those with bigger nest eggs. Therefore, if you’re on a limited income, it’s best to explore other options instead. Dorado is also one of the safest cities to live in Puerto Rico on our list. The median listing home price/ sq. ft. is $588 per Realtor. Homes range anywhere between $65,000 to a whopping $49.5 million, trending up 5.4% year-over-year. Dorado has beautiful beaches, resorts, and expansive golf courses, making it one of the best places to retire in Puerto Rico. Retirees can enjoy a high quality of life here, full of luxury and amenities. The best thing about Dorado, according to retirees, is the small restaurants that are filled with live music and karaoke all night.

11. Ponce

Insider Monkey Score: 17

Median listing home price/Sq ft: $127

Next on our list of top retirement destinations in Puerto Rico is Ponce, a large city located on the Southern Coast of the island. Known as the “Pearl of the South”, the city is home to numerous historical landmarks, vibrant festivals, and natural beauty. The climate is warm tropical, with the city’s average yearly temperature being 27.25ºC (81.05ºF). There are adequate healthcare facilities as well. The median listing home price in Ponce is $122,000, trending up 2.5% year-over-year. There’s easy access to beaches and recreational opportunities, and retirees can enjoy a relaxed pace of life.

10. Vieques

Insider Monkey Score: 19

Median listing home price/Sq ft: $301

Vieques can be a spectacular place to retire, but only if you are in great health. Retirees claim that this part of the Caribbean Island is the most peaceful in all of Puerto Rico, featuring a black sand beach, a long pier, and also a bioluminescent bay. Securing food and supplies can be a bit of a hassle, so it’s best to shop in advance to avoid any problems. Retirees love to go beach hopping, kayaking at Mosquito Bay, snorkeling, eating at food trucks, and even going on a jungle hike.

9. Humacao

Insider Monkey Score: 21

Median listing home price/Sq ft: $370

Humacao is a city and municipality situated on the eastern coast of Puerto Rico. This coastal retirement destination is home to stunning beaches, tropical wildlife, and an expansive luxury resort. Retirees who choose to retire to Humacao will always have something exciting to do. From exploring the 3,000-acre haven of protected land for wildlife called the Humacao Nature Reserve to biking along the trails and stopping by the Water Sports and Eco-Tours to explore the reserve by kayak or paddleboard, there is plenty to do. The cost of living in Humacao is 5% lower than the national average.

8. Cayey

Insider Monkey Score: 23

Median listing home price/Sq ft: $130

Embraced by forests, mountains, and natural habitat, several reasons make Cayey one of the best places to retire in Puerto Rico on our list. Deemed as Ciudad Verde (“Green City”), this mountain town paradise is tucked in the Sierra de Cayey portion of the Central Mountain Range. Cooler than many other beach towns, Cayey has a yearly temperature of 26.9ºC (80.42ºF) and is also known as the “City of Fog”. The neighborhood of Guavate is famed for its Ruta del Lechón, a winding strip of cafeteria-style restaurants and kiosks. For those who love hustle and bustle, the weekend is the best time to visit. There are affordable medical facilities here as well.

7. Culebra

Insider Monkey Score: 25

Median listing home price/Sq ft: $301

Many expat retirees who have chosen Culebra as their retirement destination swear by it. This small town is the perfect place for seniors who wish for a tranquil and relaxed pace of life. Major US cities are close by on a plane ride, so you’ll always feel close to home. Retirees love Culebra for its award-winning beaches, with Flamenco Beach being one of the most popular. The weather perfectly suits the beach lifestyle as well, with summer temperatures varying between 75°F and 87°F. The median listing price of a home on the island is $475,000, and homes can be as expensive as $5.5 million.

6. Aguadilla

Insider Monkey Score: 27

Median listing home price/Sq ft: $165

This city and municipality located on the northwestern tip of Puerto Rico is known for more than just surf breaks. Aguadilla is all about delicious cuisine, recreational opportunities, and even offers numerous popular attractions. Moreover, this “Villa del Ojo de Agua” is also known for its historic natural springs. Retirees can check out prominent Puerto Rican artists such as Luis Hernández Cruz, Rafael Tufiño, and Antonio Maldonado at the Museo de Arte de Aguadilla y del Caribe (MAAC), play golf at the Punta Borinquen Golf Club, or catch a glimpse of the Ruinas del Faro Punta Borinquen, a Spanish style lighthouse destroyed in the tsunami.

5. Isla Verde

Insider Monkey Score: 29

Median listing home price/Sq ft: $546

For those who love a good life on the beach, Isla Verde is the place to be. Spanish for “green island”, Isla Verde is located in Carolina on Isla Verde Beach. Home to world-class beaches, high-rise resorts, and chic hotels, this is another upscale destination that requires fatter nest eggs. The median listing price of a home in Isla Verde is $1.8 million, trending up 8.6% year-over-year. For those interested in rent, rentals range from $2,000 to $5,700. Retirees will also find a small expat community here, making it easier to socialize. Quiet, clean, and safe, Isla Verde is one of the best places to retire in Puerto Rico for those who can afford it.

4. Palmas Del Mar

Insider Monkey Score: 30

Median listing home price/Sq ft: $394

Beautiful, safe, and also affordable, Palmas Del Mar lands the number four spot on our list. Palmas Del Mar is a beach resort community complete with a tennis, beach club, golf courses, country club, residences, and a hotel. To enjoy these amenities and perks, residents have to pay an annual maintenance fee.

3. Rio Grande

Insider Monkey Score: 31

Median listing home price/Sq ft: $391

Rio Grande, a town and municipality of Puerto Rico, is next on our list of best places to retire. Meaning “Great River”, Rio Grande is famous amongst expats for its lavish hotels, expansive golf courses, and authentic local dining. Some of the local eateries favorite amongst residents include Don Pepe and Richie’s Café. W Sushi Bar, and El Verde BBQ. For adventurous retirees, Rio Grande is also the gateway to El Yunque National Forest, a tropical rainforest offering everything from zipline adventures to waterfall hikes.

2. Rincón

Insider Monkey Score: 33

Median listing home price/Sq ft: $400

Located on the west coast, Rincón is another nice retirement destination featuring beautiful sunsets, historic lighthouses, and many surfing spots. Known as the “town of beautiful sunsets”, Rincón retirees enjoy their days basking in the sunshine, swimming in the crystal clear waters, and even exploring the homes and colorful shops in its many streets. The residents here are warm and friendly, and retirees can live a relaxed pace of life.

1. San Juan

Insider Monkey Score: 35

Median listing home price/Sq ft: $492

Topping our list of best places to retire in Puerto Rico is San Juan, the capital and largest city of the Caribbean Island. Known as the beating heart of history and culture, retirees will find retiring here quite worthwhile. Besides the rich history of the city, all modern amenities are readily available that contribute to a comfortable retirement experience. San Juan is the place where you will find the best of everything, from shopping and dining to nightlife, beaches, and museums, there are plentiful attractions and things to do. Likewise, San Juan can be a bit expensive to live in. The median listing price of a home is $899,000, trending up 27.5% year-over-year.

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Disclosure: none. 12 Best Places to Retire in Puerto Rico is originally published on Insider Monkey.