Edd and Cynthia Staton took a leap of faith that paid off. The idea of living abroad sounds glamorous. Many assume such an option is only for the affluent few.
The Social Security Administration reports over 500,000 U.S. retirees receive their benefits in a country outside of the United States. Plenty of other retired expats have their monthly checks sent to a stateside bank. The primary reason many people are choosing to retire in other countries is the pursuit of a lower cost of living.
The financial shortfall of baby boomers is significant. 43% of those aged 55 to 64 have no retirement savings whatsoever. The Statons suddenly lost their jobs and much of their savings during the Great Recession.
They realized they were not going to be able to recover from this massive setback. Their solution was to retire early, take their remaining assets, and start a new life abroad. Ecuador’s low cost of living and inflation, along with their combined Social Security incomes, allow them to experience an upscale lifestyle on a budget of around $2,000 a month.
They rent a penthouse apartment, have fresh flowers, a housekeeper, yoga studio and gym memberships, regular massages, and eat out several times a week.
Retiring affordably in Ecuador
In Cuenca, fruits, vegetables, meats, and fish are very cheap at the Mercados around town.
Some items, mainly imported goods, can be pricier. Grocery costs depend on where you shop and what you buy. The Statons have many restaurants and eat out several times a week in their neighborhood.
In some cases, it’s cheaper than cooking. A meal at their favorite lunch spot includes a glass of fresh-squeezed juice, a bowl of soup, two choices for the main plate, and a small dessert for $3.50. Ecuadorians aged 65 and over receive special lines at banks and grocery stores and save money with senior discounts.
Their high-speed, fiber-optic internet costs $25 per month, and cell phone service is only $8. They get a full refund on sales tax for most purchases up to $108 per month. For frequent travelers, a 50% discount on flights originating in Ecuador can total hundreds of dollars in savings for a single trip.
Many locations around the globe offer similar savings. Other expats enjoy comfortable, stress-free retirements throughout Latin America, Europe, and the Far East on budgets paid for with their Social Security benefits. If you know your retirement savings are inadequate or fear you will outlive your money, moving abroad is worth considering.
