5 Most Affordable Places in the World To Retire in 2026
Written by
Nicole Spector
Edited by
Jenna Klaverweiden
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Most retired Americans are living on a fixed income, and many are struggling to get by. Research from the National Council on Aging analyzing data from 2018 through 2022 found that 45% of older adult households can’t cover basic costs of living and 80% are unable to weather a major financial shock, such as the need for long-term care.
Location is a key metric in affordability. As part of International Living’s Annual Global Retirement Index, International Living published a Cheapest Places to Live in the World in 2026 report. The report specifically speaks to U.S. expats, identifying regions abroad where the American dollar goes the furthest for retirees.
1. Sri Lanka
Sri Lanka is island idyll where a frugal budget can afford you access to a comfortable life in retirement. A retired couple reported living indulgently for $2,200 a month in Sri Lanka. However, they noted in International Living that a more modest lifestyle can be maintained for just $1,000 a month.
2. Bali, Indonesia
You may be well acquainted with Bali as an island vacation destination, but did you know it’s also an excellent place to settle down in retirement? A retired couple can live well here for just $1,400 a month, per a retiree in the report, and one couple reported living a “fun, adventurous, carefree life” on $2,500 per month in Bali.
3. Hanoi, Vietnam
Hanoi, Vietnam, is home to as many as 100,000 expats, and it has low rent, fresh local food and affordable healthcare. It could be the perfect place for those on a frugal budget. One retiree reported living here for under $1,800 a month, per the International Living report.
4. Thailand (Various Locations)
Thailand offers retirees a few solid options for affordable living. International Living spotlighted cities such as Chiang Mai and Phuket as places in Thailand where retirees can live for $1,700 and $2,500 per month, respectively.
5. Penang, Malaysia
Tens of thousands of American expats have made Penang, Malaysia, their home in retirement. One retiree, per International Living, lives a comfortable life (massages and fine wine included) for around $2,500 a month in Penang.
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