If budget concern is a primary motivating factor as you consider your options for retirement, I want to put Ecuador dead center of your radar.
Cuenca, Ecuador, specifically, is the most affordable place we know to retire well in these Americas.
Other places may be a bit cheaper, including some places elsewhere in Ecuador, but you’d be removed from the conveniences of a city, you wouldn’t have access to certain services, amenities, and conveniences that make life comfortable, and your standard of living might be reduced.
In Cuenca, you could live well, perhaps better than you’re living now. Your life could be enriched, your breadth of experience expanded. All at an almost unbelievably low cost. Cuenca amounts to the world’s best quality of life buy for the money.
How much, specifically, do you need to live here?
About five years ago, a friend, Christian, retired to Cuenca from New York. Christian and his wife have been living comfortably, happily, and well in Cuenca for the past five years on a budget of about US$1,145 per month, including the cost of renting an apartment.
Here’s how Christian’s budget breaks down:
- US$400 for rent (for a modern apartment in a building with a doorman and underground parking)…
- US$150 for HOA (or building maintenance) fees (often paid by the renter in Ecuador)…
- US$40 for transportation (Christian does not own a car but uses taxis and buses to get around the city)…
- US$5 for gas (used for hot water and for cooking)…
- US$40 for electricity and water…
- US$20 for telephone…
- US$25 for cable TV…
- US$35 for Internet…
- US$250 for groceries…
- US$180 for entertainment (concerts, theater, and other cultural activities are often free in this city).
Christian’s cost of living is certainly affordable, but you could live in Cuenca for less. To cut costs further, you could rent an apartment farther from the center of town for as little as US$260 per month. You’d be in an older building with no doorman or garage. You’d save US$140 on rent and US$150 on HOA fees, as, in an older building, you probably wouldn’t incur them.
Invest in a home of your own in Cuenca, an apartment or one of the charming old Spanish-colonial houses the city is known for, and you could live on as little as US$700 a month. Assuming all other expenses remain the same, you’d have no rent and no HOA fee, but you would have property taxes (probably less than US$50 a month) and, if you bought a house rather than a condo, you might want to invest in homeowner’s insurance (about US$50 a month). If your budget allows for it, you could add US$100 per month for in-country travel. This should buy you four in-Ecuador vacations per year.
Remember, Ecuador, like Panama, uses the U.S. dollar. This eliminates the variable of exchange rate fluctuations… which can, in some countries at some times, affect your cost of living dramatically for better or for worse. Choosing a country that uses the U.S. dollar as its currency means an expat with U.S. dollar-based income isn’t hurt if the dollar falls against the local currency.
Some destinations in Asia could be cheaper, but retiring in the Americas has advantages. You’re nearer to family and friends back home, for example. Plus, the weather in parts of Ecuador, including in Cuenca, can be pleasant year-round.
For all these reasons, we name Ecuador as the #1 choice for retiring well on a modest budget.
And we invite you to learn everything you need to know to realize a comfortable retirement in this part of the world during our Live and Invest in Ecuador Virtual Conference taking place March 13–14.
You don’t need a passport or to buy a plane ticket. You can sit in the comfort of your living room, at your laptop, and enjoy a one-of-a-kind introduction to this beautiful and diverse country.
The Early Bird Discount for registration expires today.
Kathleen Peddicord
