5 Most Affordable Latin American Countries for Retirement in 2025

Figure 1. Torres del Paine National Park, Chile. Photo by Olga Stalska on Unsplash.

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Disclaimer: I am not a financial adviser, and this content is for informational and educational purposes only. Please consult a qualified financial adviser for personalized advice tailored to your situation.

Top 5 Affordable Latin American Countries for Retirees in 2025

Continuing Our Exploration of Global Retirement Destinations

In our previous post, we examined key factors that determine your early retirement timeline: savings rate, safe withdrawal rate (SWR), and retirement spending in affordable countries. In regards to the retirement spending lever, we saw that by considering relocation upon retirement–either nationally or internationally–to a lower cost of living (COL) region, one could reduce substantially their FI timeline and shorten working career.

In past posts, we developed a methodology to come up with the top 5 countries to retire in Europe and the top 3 countries to retire in Asia. To do so, we used our new, data-driven Retirement Relocation Tool (optimized for PC, mobile-friendly version soon to follow), which helps users find their ideal retirement destination by filtering through relevant factors for retirees such as cost of living (COL), healthcare quality, safety, and many others. The tool has a dashboard that allows users to set different, user-specific filters to identify the optimal set of retirement destinations based on their particular preferences.

Today, we present the top 3 countries in Latin America to retire in 2025. As part of these retirement series, today’s post turns its attention further west. Analogous to the approach followed for Europe and Asia, we will apply the tool to the Latin America region and discuss some of the pros and cons of retiring to different locations. Alright, let’s jump right into it!

Figure 2. Rio de Janeiro, Brazil. Photo by João Pedro Vergara on Unsplash.

How Our Retirement Relocation Tool Helps Find Your Ideal Destination

Are you looking to retire early and live comfortably by relocating to affordable countries in Latin America where your retirement savings stretch further? Our Retirement Relocation Tool supports future retirees compare the different countries across regions by analyzing cost of living (COL), safety, climate, healthcare, and more. The data-driven tool produces an output retirement suitability score based on the average value across 9 factors that are relevant for choosing a retirement destination. Specifically, the tool considers factors like safety, healthcare quality, political stability, pollution levels, climate, English proficiency, local openness, natural beauty, and natural disaster risk. The selection of these factors were described in detail in a dedicated post that introduced the tool and its associated methodological approach.

In Figure 3 you can see what the tool looks like. On the left-hand bar there are sliders that allow the user to filter through the variables of interest, allowing them to potentially drop countries from the analysis that don’t perform well for a given variable. For instance, if you moved the safety slider from 5 to 4, the tool would exclude from the plot the bottom 20% performing countries across the globe for this variable. Moving the slider all the way to 1 means only displaying the top 20% safest countries.

It is also possible to narrow down on certain continents only or to exclude from the assessment countries with more than 2 missing variables (NAs). These functionalities can be found directly above the interactive plot.

The interactive tool plots countries across their cost of living (y axis) and retirement suitability score (x axis), which is made up of the average score across the different variables selected. Our data-driven approach helps identify the best Latin American retirement destinations by focusing on countries with low cost of living and high retirement suitability scores.

Figure 3. Screenshot of the Retirement Relocation Tool (at the moment available for PC only).

Discover your ideal retirement destination! Use our interactive tool to see where you could retire earlier and more affordably. (Available only for PC)*

*If you are on your phone, my recommendation would be to continue reading the article in full to get a sense of how it works and the main takeaways, and to return later with your computer to play around with the tool and see how it adapts to your preferences.

Comparing the Best Latin American Countries for Affordable Retirement

The advantage of this tool is that each user will arrive at their own personal ranking that is based on their chosen set of retirement variables. Some users may value mostly safety and healthcare, while for others openness of local population, climate, or English proficiency may be just as important. In any case, by playing around with the tool one soon discovers that there are usually important tradeoffs to consider when identifying a suitable retirement destination. It is really difficult to find a set of countries that consistently rank very high across all variables and are not too expensive.

To assess our top destinations in Latin America, I set the following slider conditions, which respond to my personal preference (this will be different for you when using the tool):

• The Healthcare lever is set to 3–dropping the 40% worst countries globally in this category.

• The Pollution lever is set to 4–dropping the 20% worst countries globally in this category.

• The Climate lever is set to 4–dropping the 20% worst countries globally in this category.

• The Natural Scenery lever is set to 4–dropping the 20% worst countries globally in this category.

• The Openness lever is set to 4–dropping the 20% worst countries globally in this category.

Honestly, I would personally prefer to also set the safety lever to 3 or 4, but then we would literally run out of countries to assess. Unfortunately, this region–with some exceptions–scores very poorly in safety compared to other regions (e.g., Asia, Europe). This is an important factor to keep in mind, which we will discuss in more detail on a country basis further below.

Based on these assumptions, the top 5 affordable places to retire in Latin America in 2025 are Costa Rica, Uruguay, Argentina, Mexico, and Colombia (Figure 4). These Latin American retirement countries stand out for offering affordable healthcare, lower cost of living, and excellent quality of life for expat retirees looking to maximize their retirement income. Openness of local population and natural beauty are also two key variables that consistently perform well in this region in relation to other countries around the world.

Figure 4. Costa Rica, Uruguay, Argentina, Mexico, and Colombia make up the top affordable early retirement destinations in Latin America. The countries displayed on the plot are the ones remaining after performing our specific set of filters mentioned above. The x axis depicts the retirement suitability score as the average across 9 different variables, while the y axis represents cost of living data (COL). For an ideal retirement destination, we want to score high on the Retirement Suitability score and low on the cost of living. We can clearly see a two-tier grouping of countries here–Costa Rica and Uruguay perform substantially better on the retirement suitability score, yet are substantially more expensive than the other three (Argentina, Mexico, and Colombia).

Detailed Analysis of the Top 5 Latin American Retirement Destinations

Our analysis reveals two distinct tiers of retirement destinations in Latin America based on quality and affordability. Costa Rica and Uruguay can be considered top tier retirement destinations–they present a substantially better retirement suitability score than their regional counterparts. However, for budget-constrained retirees, the cost is important. To illustrate, Costa Rica and Uruguay have, respectively, a 47.3% and 28.6% higher cost of living than Argentina, and much higher than Colombia (99.4% and 74.0%, respectively). Why is this important? As we covered in detail in a previous article, the amount of retirement spending you budget for has a very large impact on your financial independence timeline.

It is interesting to compare how these affordable Latin American countries score compared to retirement costs and quality of life in the US, where a large share of my readership is based. Of course, I am aware that United States is not a Latin American country–the tool just happens to filter by a larger “America” region. But this does give us the opportunity to make an important remark: Costa Rica, Uruguay, and Argentina all present equal or better retirement suitability conditions in relation to the US, despite being far more affordable. Assuming you agree with the 9 relevant retirement variables selected, it is hard to argue you’d have a better retirement in the US! (Unless you pull the family and friends card, of course).

Costa Rica, Uruguay, Argentina, Mexico, and Colombia stand out for having a relatively-solid Retirement Suitability score and for offering a reasonable cost of living–especially for Argentina, Mexico and Colombia. However, it’s important to note that the outputs of our Retirement Relocation Tool are sensitive to the different assumptions made. Other users will naturally have different preferences and may arrive at a different set of countries. Please try out the tool and see what results you obtain based on your specific circumstances. Alright, let’s look at our ranking of countries in more detail.

#1 Costa Rica: Is Costa Rica a good place to retire?

Figure 5. Quepos, Puntarenas Province, Costa Rica. Photo by Costa Rica Drone Tours on Pexels.

What are the key benefits of retiring in Costa Rica in 2025? According to our dataset, Costa Rica scores #1 across Latin American countries in terms of pollution levels. This should not be surprising, given that Cost Rica is a well-known example of a country leader in environmental preservation, far ahead of other countries in the region. A large area of its land is officially protected through national parks and reserves, and the country runs mostly on renewable energy. Their environmental commitment to sustainability has translated to preserving its world-renown biodiversity, which, in turn, has boosted its tourism industry catered to experiencing its lush rainforests, pristine beaches, and wildlife. It also helps that they are one of the top performers in our data in relation to offering a nice climate–only behind Venezuela.

In addition, it also is the top country in relation to openness. Ticos–as they call themselves–have a strong reputation for being warm, welcoming, and laid back. In regards to cultural values, Costa Rica emphasizes “pura vida”, which reflects an attitude of enjoying life, being positive, and treating others kindly. Other variables where Costa Rica ranks fairly well are Political Stability (3rd, after Uruguay and Chile), Safety (4th, after Panama, Uruguay, and Mexico), and low Natural Disaster risk (4th after Paraguay, Trinidad and Tobago, and Uruguay).

Figure 6. A herd of cattle walking along a beach next to the ocean in Costa Rica. Photo by Outward Bound Costa Rica on Unsplash.

The only noticeable weakness–at least compared to how well they perform across nearly every variable–is their healthcare score: they rank 6th in this category, suggesting solid quality but leaving some room for improvement relative to their other regional counterparts (Ecuador, Mexico, Uruguay, Colombia, and Argentina score better).

How much does it cost to live comfortably in Costa Rica? According to the data handled by the tool–sourced from Numbeo (2025), Costa Rica has a cost of living index of 36.10, compared to the US average of 54.30. This means the cost of living in Costa Rica is approximately 33.5% lower than in the United States. Of course, this number can vary significantly depending on where you choose to live within the country (or where in the US you are currently based). The Numbeo source also provides city-level global COL data, which may offer more tailored insights based on your specific situation. Also, if you live outside the US and you are interested in assessing how the COL in Costa Rica compares to your home country, you can figure it out in our tool–just hover over the countries of interest and you can see their score across different variables.

#2 Uruguay: What are the pros and cons of retiring in Uruguay?

Figure 7. Faro de José Ignacio, Departamento de Maldonado. Photo by Pedro Slinger on Pexels.

Why Uruguay ranks among the best countries for expat retirees in 2025? As mentioned earlier, safety is a large concern in Latin American countries, yet Uruguay is the exceptions here, representing the second safest country in Latin America, only behind Panama. Safety is highly valued in Uruguay, with strong legal institutions and low crime rates that help create a stable and predictable environment for retirees. Indeed, Uruguay is also the top performer for Political Stability category.

In addition, Uruguay has a lot of positive aspects going for it in relation to its regional counterparts: it is the second least polluted country (only trailing behind Costa Rica), boasting a modern infrastructure and a relatively high standard of living compared to other countries in the region; it has a very strong Healthcare (ranks 3rd, only behind Ecuador and Mexico), English Proficiency ( 3rd, following Puerto Rico and Argentina), and presents a low Natural Disaster risk score (3rd, after Paraguay and Trinidad and Tobago).

Figure 8. Salto del Penitente, Lavalleja Department, Uruguay. Photo by Karan Chaudhari on Unsplash.

The only noticeable "weakness” (see photos above) in relation to its neighbours is on the Natural Scenery variable–many countries outperform Uruguay in this category. Unlike other Latin American countries known for dramatic mountain landscapes or dense tropical forests, Uruguay’s landscape is more subdued–think gentle rolling hills, agricultural plains, and long, calm beaches. After a quick search, though, I’m pretty sure this isn’t an issue with Uruguay, but more related to the general beauty one can find in other countries in the region.

How much does it cost to live comfortably in Uruguay? According to the data handled by the tool–sourced from Numbeo (2025), Uruguay has a cost of living that is 42% lower, on average, than the average cost of living found in the US. Of course, this number will differ substantially depending on where you move to within the country (and from in the US). Montevideo tends to be much more expensive than smaller coastal towns like Punta del Este or inland cities. The Numbeo source provided also presents global COL data on a city level, which may provide more tailored insights that you can compare to your living location. And if you are relocating from outside the US, you can use our tool to compare Uruguay’s cost of living against your home country by hovering over the countries displayed in the plot and exploring their scores across different variables.

#3 Argentina: the pros and cons of retiring in Argentina

Figure 9. Buenos Aires. Photo by Rafael Guimarães on Pexels.

What makes Argentina a solid retirement destination to consider? Argentina stands out as a top retirement destination in Latin America, offering exceptional value with lower living costs in relation to neighboring countries. First, in terms of English proficiency, it ranks second, only behind Puerto Rico (where it is an official language), making it easier for English-speaking retirees to settle in. Argentina’s healthcare system also scores reasonably well, ranking fifth in Latin America (behind Ecuador, Mexico, Uruguay, and Colombia), suggesting access to solid medical care is possible for foreign retirees. Argentina also performs well in relation to pollution levels (4th, after Costa Rica, Uruguay, and Puerto Rico).

Additionally, Argentina is well known for its breathtaking natural scenery–in our dataset it ranks 5th after Brazil, Mexico, Peru, and Costa Rica. Argentina offers would-be retirees a chance to not only enjoy Argentina’s vibrant cities rich in culture and history, but also its stunning mountains and expansive plains. Its climate is another advantage, ranking, again, 5th in the region for pleasant weather, only trailing behind Venezuela, Costa Rica, Ecuador, and Colombia.

Figure 10. El Calafate, Santa Cruz Province. Photo by Jens Peter Olesen on Unsplash.

What are the disadvantages of retiring in Argentina? However, there are some relevant downsides to consider. Argentina ranks eighth for Political Stability, which reflects ongoing political and economic volatility that could impact your retirement experience. Another source of concern is related to Safety; it ranks as the fifth worst country in the region–while many areas are perfectly liveable, caution is advised in certain parts of the country.

How much does it cost to live comfortably in Argentina? Argentina’s cost of living is significantly lower compared to the United States–approximately 55% lower, on average. Analogous to what was mentioned in our assessment of other countries, the exact figures can vary based on city or region and from where you are relocating from in the US. Although major cities like Buenos Aires will have higher living costs than smaller towns or rural areas, Numbeo data suggests that Argentina offers a reasonably priced lifestyle. Argentina’s cost of living is approximately 32.7% lower than Costa Rica’s and about 22.9% lower than Uruguay’s–our two top performers in terms of retirement suitability score.

#4 Mexico: the pros and cons of retiring in Mexico

Figure 11. Vibrant Beach Scene in Mexico. Photo by Mohamed B. on Pexels.

What makes Mexico a solid retirement destination to consider? According to our Retirement Relocation Tool, Mexico is an attractive retirement destination in Latin America for a variety of reasons. It stands out especially in terms of Healthcare, ranking second across the whole region in our dataset (only behind Ecuador), with access to both affordable and high-quality medical services.

Mexico also scores exceptionally well when it comes to Openness, ranking second only to Costa Rica. Mexican culture is notoriously warm, family-oriented, and welcoming to foreigners–potentially easing integration concerns for would-be retirees in relation to other countries. Another major point is Mexico’s stunning natural beauty, which ranks second only to Brazil. Mexico offers everything from white-sand beaches and jungles to dramatic deserts and mountain ranges.

What are the disadvantages of retiring in Mexico? Of course, there are some drawbacks to consider. Mexico ranks third best for Safety in our dataset after Panama and Uruguay. While this indicates that there are many safe locations across the country, there are certainly also areas in Mexico where extra caution is advisable. Political Stability is one of Mexico’s weaker points in relation to its regional counterparts, ranking third worst in the dataset, reflecting ongoing issues with governance. Another downside is pollution, especially in major cities, with Mexico ranking 7th overall in the region.

Figure 12. Casas de las Brisas, Puerto Vallarta. Photo by Chris McQueen on Unsplash.

Interestingly, Mexico presents the fourth worst Climate among Latin American countries. This was certainly surprising given its reputation for sunny beaches; however, this survey data is likely reflecting the extreme heat and humidity that can be found in many coastal areas, along with seasonal risks like hurricanes. Indeed, Mexico ranks second worst in the dataset for Natural Disaster risk due to its exposure to hurricanes, earthquakes, and volcanic activity. English Proficiency is also among the lowest of countries assessed; while many tourist areas are English-friendly, daily life in other communities will likely require a good grasp of Spanish.

How much does it cost to live comfortably in Mexico? Compared to the US, Mexico offers a very affordable lifestyle with a 53.2% lower cost of living than in the US. Again, costs vary per relocation region and area of origin within the US, but overall you are certain to experience a substantial drop in living expenses. If you are moving from outside the US, you can use our tool to compare Mexico’s cost of living to your home country by hovering over the map to see how each country of interest scores across different variables.

#5 Colombia: the pros and cons of retiring in Colombia

Figure 13. Tayrona National Park in Barranquilla. Photo by Levi Ari Pronk on Unsplash.

What makes Colombia a solid retirement destination to consider? Colombia offers a compelling mix of affordability–the most affordable country of our top-5 ranking–and high score across multiple retirement variables. For starters, Colombia ranks 3rd in our dataset for Healthcare in the region (tied with Uruguay, and trailing only Ecuador and Mexico), ensuring access to decent medical care, especially in cities like Medellín, which have become a favourite among expats and retirees.

Colombia also stands out for its pleasant climate, ranking fourth best overall after Venezuela, Costa Rica, and Ecuador. Its geography provides a remarkable range of options, from (very) cool mountain cities (Bogotá) to tropical coastlines, allowing retirees to find the environment and climate that best suits their lifestyle. Also, in terms of Openness, Colombia ranks fifth (after Costa Rica, Mexico, Brazil, and Panama)–indeed, I can assure you first hand that Colombians are very up-beat and friendly.

What are the disadvantages of retiring in Colombia? In contrast, those considering retirement in Colombia should also consider some important disadvantages. Firstly, although it has improved over the decades, Safety still remains a relevant consideration: Colombia ranks 9th in our dataset, highlighting the need to be selective about location and vigilant about personal security. As expected, Political Stability is another weak point (ranking 8th), reflecting political tension and unrest in certain regions. Pollution can also be an issue (ranks 9th)–air quality in major cities like Bogotá is clearly a concern.

Finally, Colombia has the highest Natural Disaster risk score in our region. In addition to earthquakes, Colombia has a high exposure to disasters such as floods, landslides, and tropical storms, which are expected to be exacerbated due to climate change.

How much does it cost to live comfortably in Colombia? The cost of living in Colombia is about 67% lower than in the US. As always, costs can vary based on location: cities like Medellín and Pereira are popular for retirees seeking a high quality of life at a lower price point, while coastal cities may present slightly different dynamics. Our Numbeo source also provides city-level comparisons to help tailor your research to your preferred location. Again, if you are coming from outside the US, you can easily use our Retirement Relocation Tool to compare Colombia’s cost of living to your home country by hovering over the countries displayed in the plot and exploring their scores across the cost of living variable.

Figure 14. Cartagena de Indias, Bolívar. Photo by Fer Izaguirre on Pexels.

What is the cheapest and safest country to retire in Latin America?

From our top destinations, the best performer in terms of budget and safety is clearly Uruguay. Uruguay is the best country in Latin America to retire for safety and affordability, standing out among regional peers (Figure 4). Compared to regional alternatives, Uruguay’s normalized (0–100) safety score in our global dataset is 22.6—more than twice Argentina’s score (6.6) and over 50% higher than Colombia’s (10.4). On the cost of living front, while Uruguay has a normalized cost of living score of 31.5, both Colombia (18.1) and Mexico (25.4) are more affordable destinations—Colombia and Mexico are about 43% and 19% cheaper than Uruguay, respectively.

Can I retire early in Costa Rica, Uruguay, Argentina, Mexico, and Colombia?

While the short answer to this question is a clear yes, the long answer is that how much earlier you can retire depends a lot on your specific financial circumstances. In a previous post, we illustrated how a family could, based on their specific scenario, retire a decade sooner in Indonesia, Malaysia or Thailand compared to what their timeline for retirement would look like in the United States. Assessing how much earlier you could retire in the five Latin American countries covered today depends importantly on 1) where you are currently based and 2) your savings rate on the road to early retirement. If you play around with our Financial Independence Calculator (figure below), you will observe that the lower your savings rate is, the higher the impact retiring abroad has on your retirement timeline.

Figure 15. Examples of different financial independence timelines by retirement country destination, based on our Financial Independence Calculator.

What’s Your Ideal Retirement Destination in Latin America?

Do you agree with our list of the best retirement destinations in Latin America? Which country would you add, and what factors matter most to you? Please let us know below in the comments!

Discover your ideal retirement destination! Use our interactive tool to see where you could retire earlier and more affordably. (Available only for PC)

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