Retirement doesn’t have to come with a hefty price tag. For many people dreaming of a more relaxed lifestyle, relocating to a destination with a lower cost of living can make retirement both affordable and enjoyable. According to International Living, several cities around the world allow retirees to live comfortably on a monthly budget of around $1,500—or even less.

The publication highlights destinations where housing, healthcare, groceries, transportation, and leisure activities remain surprisingly affordable. Couples can stay within the $1,500 monthly budget, while single retirees may spend even less.

Portugal Leads the Way

Portugal continues to rank among the most attractive retirement destinations, especially in the country's lesser-known cities.

Bragança

Located in northern Portugal, Bragança offers an excellent balance between affordability and quality of life. Furnished apartments typically rent for between $400 and $500 per month, making housing one of the city's biggest advantages.

Everyday expenses are also manageable. Monthly utility bills, including electricity, water, and internet, average around $150. Private health insurance costs about $100 per month, while a grocery budget of about $400 and transportation costs of roughly $30 help keep total monthly expenses comfortably below $1,500.

Covilhã

Another Portuguese favorite is Covilhã, a charming city in the country's central region. One-bedroom apartments generally cost about $500 per month, while dining out remains inexpensive, with meals at casual restaurants starting at around $8.50 per person.

Groceries are equally budget-friendly. Everyday essentials—including milk, bread, eggs, beef, cheese, and a bottle of wine—can cost roughly $15. With utilities averaging around $175 per month, International Living estimates that couples can comfortably maintain their lifestyle on a $1,500 monthly budget, leaving room for travel or savings.

Affordable Retirement in Spain

Spain also features prominently on the list, with three cities standing out for their low living costs and appealing lifestyles.

Oviedo

Situated in northern Spain, near the Bay of Biscay, Oviedo offers a pleasant climate and affordable living. Furnished one-bedroom apartments rent for approximately $630 per month, utility bills average around $185, and a monthly public transportation pass costs about $34.

Alicante

For retirees hoping to enjoy life by the Mediterranean, Alicante offers an attractive option. Whether choosing an apartment in the city center or one with sea views, monthly rent can stay below $700, providing excellent value for coastal living.

Granada

Granada rounds out Spain's selections, offering rich history, vibrant culture, and low living costs. City apartments are available for around $600 per month, while the estimated monthly cost of living for two people averages close to $1,000, making it one of the most affordable retirement destinations in Europe.

More Budget-Friendly Destinations Around the World

Europe isn't the only region where retirees can stretch their budgets. International Living also recommends several locations in Mexico, Malaysia, and other Asian countries, where affordable housing and lower everyday expenses continue to attract retirees from around the globe.

Taken together, these destinations show that retirees can enjoy a comfortable lifestyle without spending a fortune.

See all the places you can move for an affordable retirement at internationalliving.com.