Portugal Retirement: How Much Savings Do You Need?  The Cost of Living, Visa Fees & More
Yahoo Finance4 months ago
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Portugal Retirement: How Much Savings Do You Need? The Cost of Living, Visa Fees & More

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portugal
retirement
expats
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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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