(Deutsche Welle Chinese website) For retired groups who are considering moving overseas for retirement, there is a huge gap in the retirement life they can achieve in different destinations with the same savings. Recently, the Visual Capitalist website estimated the cost of decent retirement for Americans around the world based on chart analysis of data from lending service provider NetCredit and global database Numbeo. The website refers to the average local cost of living, plus 20% of "decent pension" expenses, which are expenses to enjoy a more comfortable life. This statistic is based on the average retirement age and life expectancy of Americans, modeled on an average retirement length of 14 years and 8.4 months, and does not include taxes and health care costs.
The gap in the cost of a decent retirement between the world's most expensive and cheapest countries exceeds $900,000, analysis shows, highlighting the profound impact local costs of living have on the purchasing power of retirement savings.
The United States ranks among the top countries with the highest retirement costs in the world
Among the countries covered by this statistics, the United States ranks fifth in the world with an estimated cost of decent retirement care of about US$738,000, second only to Singapore, Iceland, Switzerland and Luxembourg. Singapore, which tops the list, is the most expensive place to retire decently, with an estimated cost of around US$1.1 million.
There are also some major economies with estimated retirement costs below US$300,000, including Brazil (US$268,000), China (US$279,000), Colombia (US$279,000), Russia (US$281,000), Malaysia (US$292,000) and Vietnam (US$295,000).
In comparison, the estimated cost of retirement in neighboring Canada is $598,000, while in Mexico it is only $356,000. This means enjoying the same standard of retirement living in Mexico for less than half as much as in the United States. In addition, Costa Rica ($556,000) is also a popular destination for American retirees. The country has a well-regarded medical system and a territorial tax system that generally does not tax foreign income.
Some popular destinations in Europe are also significantly less expensive than in the United States. The estimated cost of decent retirement care in Portugal and Spain is both US$478,000, which is about US$260,000 lower than in the United States, equivalent to about 35% lower; in Greece, it costs about US$406,000.
Great disparities in pension costs within Europe
Retirement costs across Europe range widely, from $893,000 in Iceland to $267,000 in Belarus.
The highest costs are concentrated in Western and Northern Europe. Switzerland followed Iceland with $859,000, Luxembourg with $794,000, Ireland with $702,000, the United Kingdom with $627,000, Denmark with $625,000 and Norway with $623,000. In addition, the United Arab Emirates in the Middle East and Asia-Pacific region was US$684,000, Israel was US$642,000, Australia was US$620,000, and Qatar was US$606,000.
Extending towards southern and eastern Europe, the purchasing power of retirement savings increases significantly. Estimated pension costs dropped to $395,000 in Montenegro, $388,000 in Albania and $335,000 in Romania.
Which countries have retirement costs below $200,000?
At the other end of the list, only four countries have estimated costs of decent retirement care below $200,000. Pakistan has the lowest cost of all statistical countries, with only $187,000, which is about a quarter of what the United States requires. Followed by India (US$189,000), Bangladesh (US$190,000) and Egypt (US$190,000).
Statistician Visual Capitalist also pointed out when releasing the above data: Depending on the individual's retirement financial goals and living standards, the estimated data is not applicable to everyone and does not include taxes and medical expenses. These two expenditures often have a significant impact on the actual retirement life overseas.
