I Retired Abroad: 3 Luxuries I Can Easily Afford on Just My Social Security
Written by
Jake Safane
Edited by
Chris Cluff
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After the Great Recession caused Edd and Cynthia Staton to lose their jobs in Las Vegas, destroyed most of their investments and evaporated their savings late in their lives, they realized they couldn’t retire as planned. Instead, they decided to find somewhere with a much lower cost of living.
For the past 14 years, the Statons have lived abroad in Cuenca, Ecuador, often called the Athens of Ecuador for its architecture, arts and culture. Not only does Cuenca offer them several advantages like a temperate climate and the same time zone as their children on the East Coast of the U.S., but the lower cost of living means they can easily afford a luxury lifestyle on Social Security alone.
The couple lives on a monthly budget of about $2,000, less than their Social Security income, as they explained in a recent episode of GOBankingRates’ Live Richer Podcast with Jaime Catmull.
So, the Statons can save money while enjoying many things they wouldn’t have otherwise been able to.
Also see places to live outside America that are so cheap you don’t need to work anymore.
Living in a Penthouse Apartment
Cuenca has very low housing costs compared to the U.S., so the Statons can easily afford a penthouse apartment. On average, a 900-square-foot furnished accommodation in an expensive area of Cuenca costs just $735 per month.
Eating Out Whenever They Want
The lower fixed costs like housing also free up the Statons to live luxuriously by going out to eat whenever they want. A three-course meal for two people at a mid-range restaurant in Cuenca costs $30.
Hiring Professionals
In addition to having the budgetary wiggle room for low housing costs, the Statons can afford a housekeeper for their penthouse apartment and an attorney to help get a permanent visa. They also save on car payments and maintenance costs by hiring a driver to take them places around the countryside.
Even with other costs like a yoga studio, gym memberships and traveling to see U.S. family and European vacations, the Statons can enjoy life while minimizing financial stress.Â
As their story exemplifies, the cost of living makes a big difference. It’s not the only factor in choosing where to retire, as it’s important to find a place you enjoy living, and your priorities and preferences might differ from theirs.
Still, you might find that moving abroad, or at least to a lower-cost area, enables you to get more out of your retirement budget, even if you’re just relying on Social Security.
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