Cheap countries to retire to in 2024

The fantasy of taking your retirement savings to sunnier and cheaper climes has not lost its attraction, but would the reality be all that you imagine? From Spain to Thailand, we take a look at some of the world’s most popular and affordable countries for British pensioners.

Many of us daydream about our retirement, free from the stresses of work deadlines and bosses to answer to, and full of enjoyable hobbies and adventures. In fact, according to money transfer firm Wise, more than three-quarters (79%) of pension savers are dreaming of retiring abroad.

But affording that dream life in retirement without the income that we’re used to in our working lives can feel difficult. And money is just one of many factors to think about before you book a one-way flight.

To help you out, we’ve taken a look at the cost of living, quality of life on offer and the visas and residency requirements of some of the most popular options for British pensioners.

In this article, we cover: 

• An evaluation of retirement in Portugal
• An evaluation of retirement in Spain
• An evaluation of retirement in Thailand
• An evaluation of retirement in Costa Rica
• An evaluation of retirement in Australia
• Our thoughts on the best country to retire to

Read more: Four ways to boost your state pension

Choosing the best places to retire

When it comes to the best places to retire, there is so much to consider. There’s affordability, weather, visas, culture and lifestyle to start with.

We’ve assessed five common retirement destinations for British people that are widely considered to be affordable.

See the table below for a quick comparison between these countries and factors you should consider before heading out to one of them for your retirement.

We’ve also got a full breakdown of the pros and cons after the table if you want a more detailed picture  – and we reveal our overall winner too.

Portugal

Cheaper than the UK, well-ranked for peacefulness, all-year-round sun, and plenty of culture to soak up, it’s easy to see why Portugal is a favourite with British expats.

Cost of living

Portugal tends to be cheaper than the UK. In fact, according to Numbeo (the world’s largest cost of living database), the cost of living is 38% higher in the UK than in Portugal.

To put this into perspective, Numbeo has estimated that a meal at an inexpensive restaurant in the UK would cost £15 on average whereas in Portugal it would cost the equivalent of £8.42.

Accessibility

A big bonus of retiring to Portugal from the UK is the fact that it’s fairly close to the UK, with flights typically around three hours. This means that friends and family can visit without a long-haul flight.

The cheapest one-way flight from the UK to Portugal we could find on on Skyscanner cost £37. However, you could easily find yourself spending a couple of hundred on a return, depending on what part of the UK and Portugal you’re flying to and from, as well as the time of year.

Portugal was also ranked as the 8th best country when it comes to speaking English as a second language, by the EF English Proficiency Index 2023 report. This means that it has been placed in a “very high proficiency” bracket.

Quality of life (weather, peacefulness, and pollution)

While the weather varies from region to region, Portugal is generally hot in summer and temperate in winter. This makes it an attractive destination for British people who want to avoid cold winters.

The Global Peace Index is an annual assessment that ranks 163 countries based on how peaceful they are. A range of factors, such as levels of violence and crime, terrorism, and international conflicts are all considered. In 2024, Portugal was ranked as the 7th most peaceful country in the world by the Global Peace Index.

When it comes to air quality, Portugal was ranked as the 118th most polluted country in the 2023 World Air Quality Report, out of 134, and less polluted than the UK, which came in 112th.

Visas and residency

Visas that work well for British people looking to retire to Portugal include the D7, which is often referred to as a retirement visa (ideal for individuals with a stable passive income). The D7 visa costs about €100 and, on top of that, you will need to pay €90 for a residence permit once you arrive in Portugal.

There’s also the Golden Visa (ideal for people making qualifying investments in the country).

How your state pension is affected

As Portugal is in the European Economic Area (EEA), your UK state pension will increase each year if you retire there from the UK.

Culture and lifestyle

Portugal has beautiful beaches for those who seek sun, sea, and sand during their retirement.

Of course, there’s the popular Portuguese food with its national favourites, such as bacalhau (dried and salted codfish) and the custard tart, otherwise known as Pastéis de Nata, which make for tasty treats.

Portugal is a country rich in traditional folklore, with a wide appreciation of art, music, drama, and dance. Portuguese cities are also well catered for in terms of museums, historic churches, castles and other architecture.

Spain

With millions of Brits holidaying in Spain each year, it’s easy to see why the country is also a popular retirement destination. In fact, research by Retirement Solutions found that 1,050 British retirees move to Spain each month. Mild weather, delicious food and a cheaper cost of living all contribute to making this a strong favourite to retire to.

Cost of living

Spain is generally cheaper to live in than the UK. According to Numbeo, the cost of living is 32% higher in the UK than in Spain.

To put this into perspective, Numbeo has estimated that a meal at an inexpensive restaurant in the UK would cost £15 on average, but would be the equivalent of £10.14 in Spain.

Accessibility

Spain’s not too far from Britain, with flights typically about three hours. This means that friends and family should be able to visit without too much trouble.

The cheapest one-way flight from the UK to Spain we found on Skyscanner cost £24. However, costs vary depending on when you’re travelling and where exactly you’re flying to and from. You could end up spending a couple of hundred pounds.  

Spain came in 35th place in the EF English Proficiency Index 2023. This puts it in the “moderate proficiency” bracket, which means that people are less likely to speak English than in Portugal.

Quality of life (weather, peacefulness, and pollution)

Temperatures tend to be mild, but do vary across Spain. If you’re looking for somewhere where you won’t need to wrap up in winter, the Costa del Sol, the Cabo de Gata in Andalusia, the Canary Islands, and the Costa Blanca could all be good choices. 

Spain came in as the 23rd most peaceful country in the Global Peace Index 2024, which puts it ahead of the UK, which came in at 34th, but way behind Portugal. 

The 2023 World Air Quality Report ranked Spain as the 95th most polluted country in the world, out of 134 countries. As the UK came in at 112th place, Spain is considered by this report to be the more polluted country out of the two.

Visas and residency

Among the visa options for British people is the Golden Visa Programme, which requires a minimum investment to qualify. The minimum investment is €500,000 in property. You could also invest €2 million in Spanish government bonds, or €1 million in shares in Spanish companies.

There’s also the Non-Lucrative Visa to consider, which requires a particular monthly or annual income. The minimum monthly income for an individual applicant is €2,400, an annual income of €28,800.

How your state pension is affected

Spain is part of the European Economic Area (EEA). This means that your UK state pension will increase each year if you retire there.

Culture and lifestyle

Spain is known for its delicious food, with tapas and dishes such as patatas bravas and paella being popular choices.

Parts of Spain have been a Roman province, a Muslim caliphate, a Catholic renaissance powerhouse and more in the country’s thousands of years of history. Alongside the rich history there’s an emphasis on the visual arts, literature, music, sport and cuisine in contemporary Spain.

Thailand

A big attraction of moving to Thailand is its very cheap cost of living. It also has some great scenery, a different culture to soak up, and tasty Thai food.

Cost of living

According to Numbeo, the cost of living is a huge 82% higher in the UK than in Thailand.

Amazingly, Numbeo estimates that, while the average meal at an inexpensive restaurant in the UK costs £15, it would cost the equivalent of just £2.14 in Thailand. 

Accessibility

A flight to Thailand on average takes about 12 hours. This is something to consider if you have family and relatives that you would like to see regularly.

To give you an idea of the cost of flying, the absolute cheapest one-way ticket from the UK to Thailand on Skyscanner is £363. Of course, costs do depend where in Thailand and the UK you’re travelling to and from and when. Some Skyscanner return flights for the UK and Thailand are as costly as £1,000.

When it comes to how many people speak English in Thailand, the country came in at 101st place in the EF English Proficiency Index 2023. This puts it in a “very low proficiency” bracket.

Quality of life (weather, peacefulness, and pollution)

Part of Thailand’s appeal is its all-year-round warm weather. But while warm, it does have two monsoon seasons, which are rainy periods.

Ranking countries annually on factors like violence and crime, terrorism, and international conflicts, the Global Peace Index ranked Thailand as the 76th most peaceful country in 2024. The UK, for comparison, is 34th.

Thailand was ranked as the 36th most polluted country, according to the 2023 World Air Quality Report. This means that it was ranked as much more polluted than the UK, which came in at 112th.

Visas and residency

To retire in Thailand, one option is the Thai Elite Visa. There are three available memberships, each with their own tailored benefits. There’s a 20-year reserve package too, but this is by invitation only and is available to a limited number of applicants.

There’s the Thai Elite Visa with a gold membership package. It’s valid for five years and costs 900,000 THB per applicant (the equivalent of £19,348.44).

Then there’s the Thai Elite Visa with a platinum membership package, which is valid for 10 years and costs 1.5 million THB per applicant (the equivalent of £32,247.41).

The final available visa is the Thai Elite Visa with a diamond membership package, which is valid for 15 years and costs 2.5 million THB per applicant (the equivalent of £53,745.68).

How your state pension is affected

If you want to retire to Thailand, your UK state pension will be frozen when you move there, so you will not get any annual increases.

Every year, the UK “triple lock” policy means that the state pension rises in line with whichever is highest out of wage growth, inflation or 2.5%.

As Thailand does not have a reciprocal social security agreement with the UK, you will receive your pension, but it will not grow.

Culture and lifestyle

Mainland Thai culture is heavily influenced by Buddhism. There are various temples around the country and Buddhist traditions influence the culture.

There are also some great beaches in Thailand, as well as majestic mountains to climb. 

Of course, there’s Thai food. It’s well known for being delicious, and there are famous dishes such as green curry and pad thai that you can enjoy on their home soil.

Costa Rica

With its tropical climate and cheaper cost of living, Costa Rica makes an attractive destination for British expats. It’s also great for people who like to embrace different cultures, due to its mixed influences. 

Cost of living

Costa Rica has cheap prices when compared to the UK. Numbeo has estimated that the cost of living is 16.6% higher in the UK than in Costa Rica.

Numbeo has also estimated that, while a typical meal at an inexpensive restaurant in the UK costs £15, it would cost the equivalent of just £7.49 in Costa Rica.

Accessibility

A flight from the UK to Costa Rica can typically take 12 hours, which is something to consider if you want to see your friends and relatives.

The cheapest one-way flight found from the UK to Costa Rica is £459 on Skyscanner. However, a return fight could cost hundreds more, depending on when and where you’re flying to and from.

When it comes to speaking English as a second language, Costa Rica came in 38th place in the EF English Proficiency Index 2023. This puts it in the “moderate proficiency” bracket.

Quality of life (weather, peacefulness, and pollution)

Costa Rica has a tropical climate with high temperatures throughout the year. It has both dry and rainy seasons (as most tropical destinations do) but, even in the wetter months, you will have hot and sunny days.

Costa Rica was ranked as the 58th most peaceful country in the 2024 Global Peace Index. Factors such as violence and crime, terrorism, and international conflicts are taken into consideration by this annual peace assessment. It’s worth considering that it was ranked as less peaceful than the UK, which came in at 34th place.

Costa Rica was ranked as the 121st most polluted country in the world, according to the 2023 World Air Quality Report. This means that it was considered less polluted than the UK, which came in at 112th.

Visas and residency

Costa Rica has a retirement programme that has incentives for foreign retirees. It’s called the Costa Rica Pensionado Visa (Pension Visa).

It requires a monthly income of €1,000, provides discounts on essential services and goods, and could save you from paying tax on your overseas state pension.

How your state pension is affected

You should be aware that your UK state pension will stay the same if you move to Costa Rica, and you will not get the UK annual increase.

This is because Costa Rica does not have a reciprocal social security agreement with the UK.

Culture and lifestyle

There is plenty of nature to enjoy in Costa Rica, from La Fortuna waterfall to beautiful beaches such as Jago Beach.

It’s a vibrant, multicultural place, with a Spanish influence but also influences from other cultures such as Jamaica and China.

These influences come out in the cuisine, and there are various different and interesting dishes to try, such as copo (shaved ice). It comes in cones or cups topped with milk powder, fresh fruit, flavoured syrups, or marshmallows and is often found on beaches and in plazas.

Australia

Australia is English-speaking and has cultural similarities to the UK, which can make it a familiar place for British expats to retire to. There are also plenty of outdoor activities to keep you occupied, from surfing to mountain climbing.

Cost of living

The cost of living is actually 12% higher in Australia than in the UK, according to Numbeo. However, some things such as food and drink, tend to be cheaper. Numbeo says that a meal at an inexpensive restaurant typically costs £15 in the UK but costs the equivalent of £13.01 in Australia.

Accessibility

With an average flight time of around 17 to 18 hours, Australia isn’t exactly an easy location for your loved ones to visit.

The cheapest one-way flight ticket on Skyscanner between the UK and Australia is £541. Typically, a return flight to and from the UK, depending on where and when you’re flying, can easily cost over £1,000.

Australia is classified as having a majority native English-speaking population, which means that you don’t need to worry about learning another language.

Quality of life (weather, peacefulness, and pollution)

The weather in Australia varies widely. For example, the northern areas tend to experience an equatorial climate with hot and wet weather throughout the year. In contrast, very central areas see hot desert weather with very little rain all year round, and southern parts such as Victoria can be temperate, not dissimilar to the UK.

Australia has been ranked as the 19th most peaceful country in the Global Peace Index 2024. A range of factors, such as violence, crime, and terrorism, were considered before this rank was given. 

When it comes to pollution, Australia came out as the 128th most polluted country out of 134 countries in the World Air Quality Report 2023. This means that it is less polluted than the UK, which was ranked 112th.

Visas and residency

If you have family ties to Australia, you can apply for various different visas. For example, there’s the Aged Parent Visa. The fee for this is $4,990 for the main applicant and $2,495 for the dependent partner. A second instalment fee of $2,065 is payable by each applicant before the visa is granted.

The Australian government has also listed its many visa options on its Home Affairs website.

How your state pension is affected

Your UK state pension will stay the same if you move to Australia, and you will not get the UK annual increase. This is because Australia does not have a reciprocal social security agreement with the UK.

Culture and lifestyle

Australia shares many cultural similarities with the UK, which could give a sense of familiarity to British retirees.

There’s plenty to keep you occupied in Australia, whether you’re island hopping around the coast, spotting a kangaroo on a beach, or exploring the mountains. You might even want to try riding the waves with a spot of surfing.

Our choice: the best country to retire to

The best country to retire to will depend on each individual and their priorities. Therefore, there cannot be one overall winner, as you will need to find the destination with the perfect fit for you.

However, Portugal is the strongest of the listed destinations for a UK pensioner by our evaluation.

The lower cost of living should help with personal finances. Also, because Portugal is in the European Economic Area (EEA), your UK state pension will continue to increase each year in line with the “triple lock” if you retire there from the UK. This is not the case with some other popular countries for older British expats, such as Australia and Thailand.

Of course, all-year-round sun and the prospect of those custard tarts tip the balance in its favour.