6 Affordable Tropical Retirement Locations — And How Much They Cost Compared to Hawaii
Written by
Nicole Spector
Edited by
Gary Dudak
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When you imagine your dream retirement, your mind may conjure up images of one of the most enchanting places around: Hawaii. How wonderful would it be to spend your days kicking back at the beach, soaking in the sun, gallivanting in the waves and not having a care in the world?
Except there is one major care when it comes to Hawaii — the cost!
Hawaii is the most expensive place to live in the U.S. The cost of living in Honolulu, for example, is 84% higher than the national average, according to PayScale. Much of the reason behind why Hawaii is so expensive lies in the fact that, as a remote island state, it relies heavily on imports — which are pricey. So, if your heart is set on Hawaiian vibes but your retirement savings can’t stretch far enough to cover the incredibly high cost of living there, it may be in your best interest to consider another tropical location.
Let’s look at six tropical locations that are quite similar to Hawaii, but are far more affordable for retirees.
Bali, Indonesia
“The other day as my wife and I were enjoying a $2.25 beer, and finishing a club sandwich that cost us less than $4.00, I said to my wife, ‘This is SO much like Hawaii, but a fraction of the cost,'” said Norman Bour, owner of Travel Younger.
The place Bour and his wife were enjoying is the small island of Nusa Lembongan, which is about a 2-minute ferry ride from the mainland of Bali in Indonesia. In Bali, the average cost of living for a single person is around $522 without rent, and around $1,892 for a family of four, according to Expatriate Group. Rent in Bali can be anywhere from $300 to $1,145 a month.
Puerto Rico
If you’re seeking an affordable tropical oasis for your retirement, consider Puerto Rico, which offers a tropical setting that closely mirrors Hawaii.
According to Numbeo, the monthly costs for a single person in Puerto Rico is $1,053.7, without rent. For a family of four, approximate monthly costs are $3,674.6, also without rent. And rent is considerably lower here — 45.6% lower than the national average in the U.S, while the cost of living as a whole is 14.0% lower.
Also appealing is the fact that Puerto Rico boasts attractive tax incentives for retirees, including lower local taxes, a 0% tax rate on capital gains and federal income tax exemptions for eligible residents.
Pensacola, Florida
“I would say that Pensacola, [Florida] is most like Hawaii if you are wanting to stick to the U.S,” said Brittany Betts, marketing manager at StaySense. “You get the island feel, ocean and beach bars like Hawaii, but the cost of living is substantially cheaper.”
The cost of living in Pensacola is 5% lower than the national average, according to RentCafe. This city may be deemed especially attractive to retirees because healthcare services, including doctor check-ups and dentistry, cost 10% less here compared to the U.S. average [7].
The Florida Keys
Ritesh Raj, COO and CPO of CuddlyNest and a self-described globetrotter who has visited over 120 countries, finds that the Florida Keys has a similar vibe to Hawaii, but at a much more affordable price.
“With its stunning beaches, vibrant marine life and laid-back lifestyle, it’s a fantastic choice for retirees,” Raj said. “The Keys offer a variety of outdoor activities, from fishing and boating to snorkeling and diving, much like Hawaii. Plus, the cost of living is significantly lower, making it a great alternative for those on a budget.”
In the Florida Keys — specifically Key West — the average cost of a one-bedroom apartment rental is $2,500 per month and the average cost of utilities is $239.40 per month, according to Zumper. This is by no means a cheap location, but it’s certainly cheaper than Hawaii.
Puerto Vallarta, Mexico
Puerto Vallarta is another city that boasts the tropical charms and beachside perks reminiscent of Hawaii, but without the heavy financial burdens. This is another spot Raj recommends.
Here, monthly costs for a single person are an estimated $698, without rent, according to Numbeo. A family of four has estimated monthly costs of $2,481, also without rent. Rent isn’t too steep in Puerto Vallarta either. For example, it’s 64% lower than in Seattle, according to Numbeo.
Penang, Malaysia
“This island state offers not only stunning beaches and scenic beauty but also a compelling blend of Asian cultures,” said Raj. “Penang, with its affordable living costs, ensures retirees can enjoy a relaxed lifestyle, rich with cultural experiences, tropical climates and diverse culinary adventures — all while being light on the pocket.”
The cost of living here certainly is light on the pocket. A single person’s monthly costs without rent are $509, according to Numbeo, while monthly costs for a family of four are $1,822.90. Rent is downright cheap, too — 86.6% lower than in Seattle, for instance.
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