5 Affordable Destinations For Retirees In South America, According To Experts

Dreaming of an active retirement without punishing your pension? South America has emerged as a top contender for budget-conscious retirees seeking a high quality of life with a lower cost of living, and the benefits include more than financial flexibility. 

For starters, the continent is a nature lover's paradise, from the Andes and Amazon to the Altiplano and Lakes District. South America (SoAm) even claims the island that likely inspired the setting for the book Utopia. Many big cities have become increasingly more cosmopolitan, and the national cuisines are often full of delicious surprises that aren't widely known in North America. Then there are the practical considerations. Do you need an option for quick transit back to the states? Colombia has flights to Miami that take less than three hours, and the time zones are fairly similar with the United States, unlike Europe and Asia.  

The big question, of course, is where. The first step is picking the country that best fits your budget and needs. Based on a combination of economic data, media research, expert advice, and personal experience in the region, these five affordable destinations stand out for retirees considering a move to South America. 

The Amazon, Andes, Incan ruins, food, and nearly 2,000 miles of coastline make Peru an attractive choice for budget-conscious retirees. According to Latin American research posted by NASDAQ, the country ranks sixth on the affordability scale, with an average monthly housing cost of $672. Another expert, International Living, estimated that a couple can cover rent, transportation, food, and medical care for less than $1,500. It's also one of the easier SoAm countries to acquire a residency visa. 

The capital city, Lima, served as the administrative capital for most of Spanish-speaking SoAm during the colonization period. It's a city full of history and amazing food, with pricier neighborhoods like San Ysidro, Barranco, and Miraflores, but your dollar will stretch further in residential neighborhoods like Chorrillos to the south or Magdalena del Mar to the north. 

For even better bargains, look outside the capital city. Head south for more affordable options like the volcano-framed Arequipa and the Andean town of Cusco, which serves as the entry point to Machu Picchu and the Rainbow Mountain (photo). Still, that's a lot of coastline to ignore, especially with northern coastal towns like Mancora, Trujillo, and Chiclayo. Edison Aventuras included the latter as the only coastal city on its list of cheapest cities to live in Peru. 

Argentina suffers from hyper-inflation and a less-than-stable peso, but a pension and savings in U.S. dollars help insulate you from this volatility. The NASDAQ list ranked Argentina as the third-most affordable country with a median monthly housing cost of $576, which is nearly 82% less than the U.S. Average. Tax estimates that monthly expenses can reach $1,700 for an individual and $2,700 for a couple. To qualify for a golden visa, you'll need to earn around $1,400 per month in passive income, which is five times the national minimum wage. 

Right now you're probably dreaming about steak, wine, and flamenco dancers in Buenos Aires, and the capital is an amazing place, but you might need to look elsewhere for lower price points. Consider the college town of Cordoba in central Argentina, which is about 10% cheaper than Buenos Aires overall, according to LivingCost, or head to the Andean foothills for even better prices. The heart of wine country, Mendoza, is a popular destination for expats, yet you'll find even better affordability and views in the Lake District, home to extinct volcanoes, rivers, and hundreds of glacial lakes. 

Among several appealing spots, San Carlos de Bariloche (photo) is an alpine town on the shores of Lake Nahuel Huapi that was heavily populated by Swiss immigrants in the early 20th century. Most of the town reflects this European influence, from the architecture and fondue restaurants to the diet-destroying chocolate shops. Purchasing a one- or two-bedroom home in Bariloche costs about $100,000 USD. Retirement relocation specialists The Good Life Journey calls Argentina the "best value" in Latin America. It notes that the country has the second-most English speakers in Latin America, following Puerto Rico, where English is the official language. It also ranks fifth for healthcare. 

With a median housing cost at $661, Brazil finished fifth on the NASDAQ list, but that placement comes with a lot of caveats. The Portuguese-speaking country is three times the size of the next-biggest SoAm country, Argentina, so prices can vary wildly based on where you live. Brazil is home to beautiful islands like Fernando de Noronha, the aforementioned inspiration for the island in Utopia, as well as higher-cost cities like São Paulo and Rio de Janeiro. Your best bet is to consider one of the lesser-known cities. 

Belo Horizonte, for example, is a state capital that's about 300 miles from São Paulo and much more affordable. The BBC called Belo Horizonte the new "it" city for Carnival, in part due to its lower prices. However, retirees who prefer nice dinners to wild blocos will appreciate it's the capital of Minas Gerais state, arguably the country's most famous food region. Those cheesy breads you love, for example, originated here. The fintech company Wise lists Recife, Curitiba, and São José dos Campos as cities with a lower cost of living. Also consider lesser-known coastal towns in the north like Pipa, Canoa Quebrada and São Luís, the latter a former French colony near Lençóis Maranhenses park (photo). 

Even still, the relocation platform Expatis notes that São Paulo, the most expensive city, has a median monthly rent of $540 for a one-bedroom apartment, which is "far below Western standards," with the same apartment running about $325 in Salvador. LivingCost found that the average cost of living in Brazil overall is 1.57 times less expensive than the world average. As you might guess, Brazil joins Argentina and Peru as budget vacation destinations where the U.S. dollar goes furthest. 

It's probably safe to guess that Paraguay wasn't the first country you imagined as a retirement destination, but it might be the hidden gem that everyone will be talking about in a decade. In fact, as prices rise in Spain, many Spaniards are making the move to its former colony and sharing their experiences online. Among the cost benefits, Move to Paraguay notes that executive lunches cost between $2.50 and $3.50, healthcare is affordable, and the government offers a ridiculously favorable tax system that includes (brace yourself) no tax on foreign income, dividends, overall wealth, or inheritance. Expat Money says it's the cheapest country on the continent, categorizing Paraguay as "South America's rising superstar."

Per the NASDAQ list, the landlocked country ranks second in terms of affordability, with a median housing cost of $555. Simply put, affordability is off the charts for retirees. Of course, prices will be higher (but not high) in Paraguay's up-and-coming capital of Asuncion, but the country is filled with attractive spots like Encarnación, a riverside town on the border with Argentina that's famous for its multi-weekend Carnival. Other secondary cities include Concepción with famed river beaches, the artsy lakeside town of Areguá, and the Iguazu Falls-adjacent Ciudad del Este, home to the Friendship Bridge (photo) with Brazil.

Colombia is the northernmost point in South America, and it's not even close if you include Providencia island off the coast of Nicaragua. It is the only SoAm country with both a Caribbean and Pacific coastline, and its natural beauty includes the Amazon, Andes, and Cocora Valley in the heart of its famed coffee region. The food? Amazing. Try the high-elevation ajiaco soup and lomo al trapo, a beef tenderloin covered in salt, wrapped in a towel, and cooked directly in the fire. The salt forms a hard shell around the meat that's broken before serving. Some places are starting to soak the towel in wine as well. 

According to the NASDAQ research, Colombia is the cheapest place to live in SoAm, with an average monthly housing cost of $548. Like many of these destinations listed here, the data doesn't tell the whole story. The prices seem lower due to areas with very low cost, but these usually aren't expat-friendly regions. For example, there's much higher risk living in the south of Bogotá despite much lower prices. Northern neighborhoods like 93 Park, Usaquén and Zona T are popular yet less affordable. Those wanting to be near the capital might consider towns like Chia, best known for its iconic party restaurant Andres Carne de Res, about 20 miles north. 

Outside the capital, retirees can find affordable options in Pereira, Cali, Medellin, and coastal cities like Barranquilla and Santa Marta. The latter sits near Tayrona National Park (photo) where the Sierra Nevada mountains crash into the Caribbean Sea. As previously noted, Colombia offers some of the quickest connections to the United States, especially from the northern coast. This includes a direct flight between Cartagena and New York City on jetBlue, but Colombian airports do not have direct flights to the West Coast at this time. 

To determine the affordability of these SoAm destinations, we researched recommendations by relocation services, expat communities, travel media sites, and fintech companies providing services to retirees and digital nomads in these countries. We then cross-referenced their recommendations against economic data. The final filter was personal experience as someone who's spent considerable time in Brazil and every Spanish-speaking country in Latin America, including stops in places like Fernando de Noronha.