How Much Money You Need To Retire in Mexico vs. the US
Written by
Terence Loose
Edited by
Amen Oyiboke
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Let’s face it, life in the U.S. is expensive. Just ask workers who participated in a late 2024 Charles Schwab 401(k) Participant Study. They expected to need $1.8 million to retire comfortably. Contrast that with the average American retirement account value of $491,022, according to Empower, and you have trouble in paradise.
The answer for more than two million Americans and Canadians is Mexico, where the average cost of living is a whopping 61% less than in the U.S., according to LivingCost.org. Perhaps that’s why International Living cites Mexico as the most popular foreign country in the world for Americans to live.
Here are three key indicators of why retirees’ money goes further south of the border.
Housing Costs
If you’ve paid off your mortgage, housing costs might not be a huge concern. But for many retirees, this is a major expense. And the difference between the U.S. and Mexico is stark. According to LivingCost.org, the average rent for one person in Mexico is $442 a month, compared to $1,592 in the U.S.
If you want to buy, the differences are just as eye-popping. According to Zisla, in Mexico, the average home prices range from $100,000 to $120,000 for a simple home, to $116,000-$232,000 for a mid-range home, to $580,000 and up for a luxury home.
Here in the U.S., the average home value is $363,505, according to Zillow. And luxury homes? According to Redfin News, the average luxury home sold for $1,348,065 in April 2025. So, yeah, slightly more than Mexico.
Healthcare Costs
According to International Living, healthcare costs in Mexico are roughly half of what they are in the U.S. They point to the average cost of a dental implant — $1,650 in Mexico versus $3,400 in the U.S. — and a coronary artery bypass — $73,000 in the U.S. versus $27,300 south of the border.
If you don’t have employer-sponsored or government-sponsored health insurance, and are not yet 65, you’ll need to pay for your own health insurance in the U.S. According to the Urban Institute, the average monthly premium for 60-year-olds was $986. At 64, that number was $1,081. According to International Citizens Insurance, the cost of comprehensive health insurance for an American living in Mexico is $5,900 per year, or $492 per month.
Everyday Living Expenses
The cost of living in Mexico is substantially lower than in the United States, according to LivingCost.org. Their data states that the per-person cost of living in Mexico is $978 versus $2,504 in the U.S. According to SmartAsset, a retired couple needs about $30,000 a year to retire in Mexico.
With the average monthly Social Security check for retired workers of $2,005, or about $48,000 per couple per year, according to the Social Security Administration, the average couple could live comfortably in Mexico on their Social Security alone. If LivingCost.org is correct, that same couple will be struggling in the U.S.
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