I Asked ChatGPT What the Cost of Retirement Looks Like in Countries Outside the US
Written by
Laura Beck
Edited by
Molly Sullivan
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American retirees face expensive housing, healthcare and living costs that can drain retirement savings quickly. But what about retiring abroad? I asked ChatGPT to break down retirement costs in other countries, and the AI delivered specific numbers showing where dollars stretch much further.
Here’s what ChatGPT revealed about international retirement costs.
The Key Cost Components
ChatGPT started by identifying six factors that determine retirement affordability abroad: housing or rent costs, living expenses like food and utilities, healthcare including insurance and medications, taxes on foreign income, visa and residency costs, and lifestyle trade-offs.
“Lower cost doesn’t always mean ‘same as U.S. but cheaper,'” the AI warned. “There may be infrastructure, transportation, or quality-of-life tradeoffs.”
That caveat matters. Cheap retirement destinations often sacrifice conveniences Americans take for granted: reliable electricity, fast internet, nearby medical facilities or English-speaking services.
With that in mind, here’s the information ChatGPT shared.
Mexico: $1,500-$2,500 Monthly
ChatGPT led with Mexico, estimating typical monthly costs for retirees at $1,500 to $2,500. The AI wrote that cost of living runs 30% to 50% lower than the U.S.
Mexico offers affordable private healthcare and rent can be very low in non-tourist cities. Proximity to the U.S. matters for retirees maintaining family connections or needing easy border access for any reason.
The range reflects regional differences: Living in touristy areas like Cabo San Lucas costs far more than retiring in cities like Mérida or San Miguel de Allende where expat communities already exist.
Panama: 35%+ Lower Than US
ChatGPT highlighted Panama’s cost of living as potentially 35% or more below U.S. levels in some cases. The AI specifically mentioned Panama’s “Pensionado” retiree visa program that provides various discounts.
These discounts apply to everything from restaurants to medical care to entertainment for qualified retirees. Panama uses U.S. dollars as official currency, eliminating exchange rate complications. The country’s location enables easy travel throughout Central and South America.
Portugal: Around $1,800 Monthly
ChatGPT cited approximately $1,800 monthly for a single retiree in Portugal, depending on city. The AI emphasized very good healthcare, pleasant climate and tax advantages under certain residency programs.
Portugal’s popularity among American retirees has grown in a big way recently. The country offers European lifestyle and culture at costs well below other Western European nations. English is increasingly common in expat-heavy areas.
Spain: $2,000 Monthly
Spain runs about $2,000 monthly for single retirees, according to ChatGPT’s sources. The AI noted strong public and private healthcare systems and explained that many expats choose Spain for quality of life.
Spanish culture, cuisine and climate attract retirees despite costs running higher than some other international options. The country’s extensive coastline offers beach living while interior cities provide lower costs and authentic Spanish culture.
Thailand: $1,500-$2,000 Monthly
ChatGPT provided specific details for Thailand: Rent for a one-bedroom outside Bangkok can be just $300 to $500 monthly, and street food stays very cheap. The AI estimated $1,500 to $2,000 monthly for couples.
The AI highlighted Thailand’s excellent medical tourism infrastructure and very affordable day-to-day costs. Bangkok and Chiang Mai both host large expat retirement communities with established support systems.
Malaysia: 51.6% Lower Than US
ChatGPT cited the most dramatic savings for Malaysia: Cost of living approximately 51.6% lower than the U.S., with realistic budgets around $1,500 monthly. The AI wrote that English is widely spoken, healthcare quality is good and visa programs like “Malaysia My Second Home” facilitate long-term residency.
Malaysia’s multicultural mix of Malay, Chinese and Indian influences creates diverse food and cultural experiences. The country’s British colonial history left English widespread, easing communication barriers for American retirees.
Why These Costs Run Much Lower
ChatGPT explained four main reasons international retirement costs less:
Lower real estate multiples: Rent and purchase costs represent fractions of U.S. metro prices.
Cheaper services: Housekeeping, domestic help, food and transportation cost far less in many countries.
Healthcare efficiency: Many countries provide high-quality healthcare at costs well below U.S. private care.
Favorable tax and visa regimes: Some countries encourage retirees through beneficial visa options or by not taxing all foreign income.
These factors combine to stretch retirement dollars in the right locations.
The Risks ChatGPT Warned About
The AI didn’t just tout benefits — it specifically flagged five major risks:
Currency risk: Your income arrives in dollars while expenses come in local currency. Exchange rate fluctuations matter enormously for budgets.
Healthcare access: While many countries cost less, not all regions have world-class hospitals. You might need to budget for travel for top-tier care.
Residency requirements: Retirement visas often require proof of stable income or savings, sometimes at specific monthly minimums.
Quality-of-life tradeoffs: Lower costs don’t guarantee the same comforts. Infrastructure like transport and utilities might not match U.S. standards.
Taxes: You need to understand how your U.S. retirement income gets taxed locally and vice versa.
ChatGPT was clear that these aren’t minor details but serious and fundamental considerations that can make or break international retirement plans.
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