How Much Money Do You Need Saved to Retire Comfortably in Europe?

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Retiring comfortably in Europe is an appealing prospect for many Americans, especially when considering the high costs associated with retirement in the U.S. Americans typically require 70%-80% of their pre-retirement income to retire comfortably. However, with soaring expenses, many are looking abroad for more affordable retirement options.

To find the information needed for this article, the cost of living for more affordable options is sourced from Numbeo and Global Peace Index, while the more expensive places is data sourced from LivingCost.org. Combining these sources and statistics has given us a good idea on how much you really need saved to retire comfortably in Europe:

Affordable European Retirement Destinations

Retirement in Europe need not break the bank. Several European countries offer a serene and cost-effective living experience, particularly in regions that combine safety and affordability. Here’s a glimpse into some European countries where you can retire comfortably on a budget of less than $2,000 per month:

1. Bosnia and Herzegovina: With a Global Peace Index of 1.850, this country offers an average monthly cost of living of around $982. The cost of living here is about 50.5% lower than in the U.S.
2. Greece: Despite its economic challenges, Greece is a peaceful and affordable retirement destination, with a cost of living of approximately $1,610 per month. It’s 54% less expensive than living in the U.S.
3. Serbia: In Serbia, the cost of living is roughly $1,136 per month, making it 62% less expensive than in the U.S.
4. Montenegro: Here, retirees can live on about $1,243 per month. The cost of living is 65% lower than in the U.S.
5. Albania: With a monthly cost of living of just $1,112, Albania is 70% cheaper than the U.S.
6. North Macedonia: This is the most affordable country on the list, with a monthly cost of living of only $889, which is 74% less than the U.S.
7. Romania: Living in Romania can cost a retiree a little over $1,100 per month, thanks to the low cost of living, which is 68% less than in the U.S.
8. Spain: Spain offers a comfortable lifestyle for under $2,000 a month, with a cost of living 44% less than in the U.S.
9. Poland: Retirees can live in Poland on less than $1,300 a month, with living costs 59% cheaper than the U.S.
10. Bulgaria: Here, the cost of living is 67% less than in the U.S, requiring just over $1,200 a month for a comfortable life.
11. Portugal: Known for its safety and affordability, Portugal offers a cost of living 52% cheaper than the U.S., with an average monthly requirement of $1,587.

Comparing with More Expensive European Destinations

For contrast, countries like Monaco, Switzerland, and the United Kingdom can be significantly more expensive. For instance, living in Monaco, the most expensive country, is 71% higher than in the U.S. Similarly, cities like Geneva, Zurich, and London demand a premium for living expenses, sometimes requiring 50% or more than what an average American family would spend.

Conclusion

Retiring in Europe can be a financially viable option, especially when choosing countries with a lower cost of living. Countries like Bosnia and Herzegovina, Greece, and Albania offer peaceful environments with living costs significantly lower than in the U.S. However, it’s crucial to consider personal lifestyle preferences, healthcare needs, and cultural adaptability before making the move.

Retirees should also be aware of the varying costs across different European regions and choose a destination that aligns with their financial capabilities and retirement goals. With careful planning, retiring in Europe can be both an affordable and enriching experience.

Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.

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