Housing and healthcare are much cheaper
A study has named Pakistan as the cheapest country for American citizens to retire to, requiring around $158,000 to live comfortably.
Using Numbeo’s cost of living data, a study by Aegon calculated how much money Americans would need to retire in different countries comfortably.
The study took into account the average retirement age of 61 and life expectancy of 76.15 years.
Countries like India and Colombia were also some of the other cheap countries, falling under the $200,000 threshold.
In Tunisia, Egypt, Sri Lanka, Nepal, North Macedonia and Kosovo, Americans would need less than $300,000 to retire.
On the other end of the spectrum are countries like Switzerland ($830,547), USA ($702,330), Luxembourg ($696,422), Denmark ($603,668), UAE ($636,493) and Canada ($557,164).
But the most expensive country for American retirees is Singapore, requiring nearly $1.2 million.
South Asian countries like India and Pakistan are popular among American retirees due to the lower cost of living.
Housing and healthcare are much cheaper, leading to longer-term retirement savings and more freedom to follow passions.
Nearly 5.4 million people of South Asian descent live in the United States.
Given that South Asian countries are cheaper, those retiring may be more inclined to move to their countries of origin.
This comes after it was revealed that $1 million in savings would not last longer than 22 years, eight months and 12 days anywhere in America.
That is how long the figure would stretch in Mississippi.
In Hawaii, savings would run out after just 10 years, three months and 22 days.
The study assumed a retirement age of 65 and analysed annual living costs including expenses for groceries, housing, utilities, transportation and healthcare using figures from the Bureau of Labour Statistics.
In 2022, the same study found that $1 million would sustain a retiree in Mississippi for just over 25 years.
After Hawaii, the study found that $1 million in retirement savings would run out the quickest in New York and California.
In New York, the money would last 14 years and one month. In California, it would last just 13 years and nine months.
Next on the list was Massachusetts, where the funds would stretch for 12 years and nine months, and Alaska, where it would last 15 years and three months.
According to the study, $1 million would last 18 years and four months in the retirement hotspot of Florida.
The analysis found that there was a bit more cushion in many Midwestern and Southern states.
As well as in Mississippi, the funds would stretch over 22 years in Oklahoma and Alabama.
Although $1 million may not be enough to see a saver through the entirety of their twilight years, the number of Americans with the sum in their retirement accounts ballooned in 2022.
Thanks to a booming stock market, the number of Americans with over $1 million in retirement savings increased by around 100,000 people in 2023.
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