Summary:
The cost of living in Portugal is 34.9% lower than in the US.
Portugal offers a welcoming environment for retirees with its aging local population.
Portugal boasts beautiful weather and a relatively safe environment.
It was ranked the second best country for a comfortable retirement (only behind Switzerland).
A family of four can expect to spend around €2,361.4 ($2,581.8) per month, excluding rent.
A single person can expect to spend around €669.8 ($732.3) per month, excluding rent.
Rent in Portugal is 43.8% lower than in the US, averaging €1,320 ($1,439) for a 3-bedroom apartment.
You need to cover visa fees, moving costs, an emergency fund, and a retirement in Portugal fund.
It's essential to have a substantial savings to ensure a smooth transition to retirement in Portugal.
Portugal: A Retirement Haven for Americans?
The cost of living in the US is soaring, making it challenging for retirees to get by on a fixed income. Many are looking for more affordable options, and Portugal is increasingly popular. The number of foreigners living in Portugal has risen by 37% since 2011, with Americans nearly doubling their presence in the last three years.
What Makes Portugal So Appealing?
- Lower Cost of Living: The cost of living in Portugal is 34.9% lower than in the US.
- Aging Local Population: This creates a welcoming environment for retirees.
- Wonderful Weather & Low Crime: Portugal boasts beautiful weather and a relatively safe environment.
- Second Best Country for Retirement: According to US News & World Report, Portugal is the second best country for a comfortable retirement (only behind Switzerland).
Breaking Down the Costs in Portugal
Here's a look at estimated monthly costs for a family of four and a single person, excluding rent:
- Family of Four: €2,361.4 ($2,581.8)
- Single Person: €669.8 ($732.3)
Other Costs:
- Rent: 43.8% lower than the US, averaging €1,320 ($1,439) for a 3-bedroom apartment.
- Utilities: Around €110 ($119)
- Groceries: Around €200 ($218)
- Transportation: Around €40 ($44)
- Leisure & Entertainment: Around €150 ($164)
How Much Should You Save?
To comfortably retire in Portugal, you'll need to cover not only the cost of living but also:
- Visa Fees: €50 ($54.50) to €300 ($327) per applicant.
- Moving Costs: $4,200 to $7,000.
- Emergency Fund: At least 3-6 months' worth of savings.
- Retirement in Portugal Fund: At least $10,000 to cover initial visiting and moving costs.
While the exact amount needed varies, it's essential to have a substantial savings to ensure a smooth transition.
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