Portugal and Panama emerge as top budget retirement destinations

Retirees are increasingly looking to international destinations to stretch modest monthly budgets. While average monthly spending for Americans aged 65 and older was approximately $5,119 in 2024, certain regions offer significantly lower living expenses, with costs between 34% and 71% lower than in the United States.

Portugal is highlighted as a top destination, particularly outside major cities like Lisbon or Porto. A monthly budget of approximately $1,700 can support a comfortable lifestyle in these areas. The country offers the D7 passive income visa, which requires a minimum steady monthly income of roughly €870.

Panama also remains a prominent option due to its established retirement industry. The Pensionado visa requires a lifetime pension of at least $1,000 per month for single applicants. While living outside Panama City may require a budget of $1,800 to $2,500, smaller towns offer even more affordable opportunities for retirees.