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Most retired Americans are living on a fixed income, and many are struggling to make ends meet. research from National Council on Aging Analyzing data from 2018 to 2022, it was found that 45% of older adult households cannot cover basic costs of living and 80% are unable to cope with major financial shocks, such as the need for long-term care.
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Location is a key metric in affordability. As part of International Living’s annual Global Retirement Index, International Living published a Cheapest places to live in the world in 2026 report. The report speaks specifically to American expatriates, identifying the areas abroad where American dollars go most to retirees.
1. Sri Lanka
Sri Lanka is an ideal island where you can live a comfortable life after retirement on a low budget. A retired couple said that they are living comfortably in Sri Lanka on $2,200 per month. However, he notes in International Living that a more modest lifestyle can be maintained for just $1,000 a month.
2. Bali, Indonesia
You might know Bali well as an island holiday destination, but did you know it’s also an excellent place to settle down after retirement? According to the report, a retired couple can live well here on just $1,400 per month, and one couple reported living a “fun, adventurous, carefree life” in Bali on $2,500 per month.
3. Hanoi, Vietnam
Hanoi, Vietnam, is home to approximately 100,000 expatriates, and has low rents, fresh local food, and affordable healthcare. This can be an ideal place for people with a frugal budget. One retiree reported living here on less than $1,800 per month, International Living reports.
4. Thailand (various locations)
Thailand offers retirees some solid options for affordable living. International Living highlighted cities like Chiang Mai and Phuket as places in Thailand where retirees can live on $1,700 and $2,500 per month, respectively.
5. Penang, Malaysia
Thousands of American expatriates have made Penang, Malaysia their retirement home. According to International Living, a retiree lives a comfortable life (massages and fine wine included) in Penang for about $2,500 per month.