7 Best Cities in Central America To Spend Your Retirement

Central America is quickly becoming one of the best regions to spend retirement for American expats. With breathtaking views, affordable housing and a lower cost of living than most places in America, thousands move there each year to spend their golden years.

But which cities are the safest and most cost effective to live in?

We’ve found the best cities in Central America to consider retiring in, and how they compare to living in the United States.

Also see affordable beach cities where you can retire.

Average monthly cost: $3,000 to $4,000

An island off the coast of Mexico, Cozumel is a popular tourist destination and expat haven that offers stunning beaches and an abundant nightlife. While the cost of living is slightly higher than mainland Mexico, retirees can expect a lower cost of living than the U.S., plus warm weather to boot.

A couple retiring in Cozumel can expect to pay anywhere from $500 to $1,500 per month in housing costs, and other costs add up to $2,500 per month. The tourist areas do have inflated prices, but if you stick to local outdoor activities, you can keep yourself busy and save money.

Average monthly cost: $2,500 to $3,000

Merida is a historical city on Mexico’s Yucatan Peninsula, with a history dating back to the Mayans and charming old-world architecture. While not an ocean-front city, Merida offers a bustling downtown and modern amenities, and you can drive to the coast in under an hour. The cost of living is very low, with transportation and housing costs well below U.S. averages. 

A couple retiring in Cozumel can expect to pay anywhere from $500 to $1,000 per month in housing costs, and other costs add up to an additional $2,000 per month. Merida is also home to world-class medical facilities and education, and senior residents get discount cards that offer city-wide discounts on various items.

Average monthly cost: $2,500 to $3,000

Puerto Vallarta is another popular tourist destination located on the west coast of Mexico, offering beautiful ocean views and a modern city life. There have been expats in Puerto Vallarta for many years, including both full-time retirees and “snowbirds” who visit in the winter.

A couple retiring in Puerto Vallarta can expect to pay about $1,000 per month in housing costs, and other costs add up to just under $2,000 per month. Similar to Merida, Puerto Vallarta boasts world-class medical facilities and dental care, plus access to lots of well-known stores and shopping centers.

Average monthly cost: $2,000 to $2,500

Corozal is a smaller coastal city on the shores of Corozal Bay. It offers a taste of the laid-back Caribbean lifestyle for those who want a slower pace, but you also can hop across the Mexican border to access modern shopping and nightlife. Corozal has very inexpensive real estate (for now), and rents are far below U.S. prices.

A couple retiring in Corozal can expect to pay anywhere from $500 to $1,000 per month in housing costs, and other costs add up to $1,500 per month. Corozal isn’t a tourist destination, and the prices are much lower than many other Central American destinations.

Average monthly cost: $2,500 to $3,500

Coronado is a city located on the Pacific coast of Panama, with beautiful beaches and access to most of the amenities you’d expect from a modern city. Real estate is less expensive than the U.S., and the cost of everyday items is lower as well.

A couple retiring in Coronado can expect to pay anywhere from $1,000 to $2,000 per month in housing costs, and other costs add up to $1,500. Coronado is a known expat destination, with many American retirees enjoying the laid-back lifestyle and lower cost of living.

Average monthly cost: $3,500 to $5,000

San José is the capital city of Costa Rica and most resembles big-city living out of all the destinations on this list. Retirees have a lot of options to choose from for housing and location within the city, and the well-designed transportation system offers a simple way to get around. The cost of living is slightly higher than some other Central American locations, but it is still less expensive than big U.S. cities.

A couple retiring in San José can expect to pay $600 to $2,000 per month in housing costs, as there are a wide variety of housing options available. Other costs add up to as much as $3,000 per month. San José has all of the amenities and access you’d expect from a city of millions of people.

Average monthly cost: $2,500 to $3,000

Tamarindo is quickly becoming a fantastic expat destination in Costa Rica, with stunning ocean views, a buzzing nightlight and (for adventure lovers) home to several national parks. There is a strong expat community in Tamarindo that can help welcome you home as an international retiree.

A couple retiring in Tamarindo can expect to pay $1,000 to $1,500 per month in housing costs, and other expenses total around $1,500. While you can simply rent a condo, there are also luxury homes and apartments available with waterfront views and prices of $1 million. So there’s something for everyone here.