Retirement is meant to be a period of relaxation and enjoyment of the results of your effort. You want it to start early and last a long time. Warm climates, holiday lifestyles, and a plethora of activities and entertainment may sound appealing but are sometimes unaffordable on a fixed moderate salary. You do not wish to postpone retirement or jeopardize your quality of life. Simply put, you need to retire to a place where you can live comfortably on a lower income. Therefore, you may choose to investigate the financial benefits of retiring in Mexico.
Retire in Mexico
The following are some of the reasons why retirement in Mexico can result in significant savings:
Dollars-to-pesos conversion is rational.
Retirement in Mexico entails subsisting on dollars in a peso-dominated economy. And, as the dollar’s trend upward against the peso is projected to continue, you may anticipate that your retirement savings or Social Security benefits will continue to grow over time. By stretching your funds, you can retire earlier and live a healthier, longer life.
Reduced spending equals a more profitable way of life
Not to mention, Mexico’s cost of living is lower, to begin with. Mexico produces the majority of its delectable food on its own, which helps keep costs reasonable. Additionally, housing, utilities, health care, and transportation are affordable. This leaves you with more money to spend on the activities and leisure that are supposed to be a part of retirement! Possessing the ability to enjoy one’s leisure results in a happier—and healthier—retirement. Additionally, who doesn’t want that? –
Choosing a retirement residence is almost certainly the most critical decision you will make. After all, lodging will be your largest spend.
According to a study of US cities, the median rent for a one-bedroom apartment was $2,342 in 2020, just under $600 per month. Housing costs are significantly higher in coastal locations with warmer climates. With an average monthly Social Security benefit of $1,404, these rents are unaffordable. Let’s face it — nobody wants to retire and shovel snow. Do you agree?
Perhaps you’d want to retire in a house. For example, coastal property in Florida would cost more than $300,000, not including closing expenses, taxes, and maintenance. Whether you pay cash or borrow money, that’s a sizable piece of change to deducting from a retirement fund. Your CPA will almost certainly advise against it.
Mexico is my home
When retiring in Mexico, housing is far more affordable. For the same price as a two-bedroom house on or near a gorgeous beach, you could live in a two-bedroom house. This is true regardless of whether you rent or own your retirement residence. As a result of the significant savings per square foot, you may be able to afford an additional degree of luxury. Elegant condos for sale near the ocean in the Caribbean resort town of Playa del Carmen start at less than $180,000! There is no other place in North America that offers this level of inexpensive luxury.
If you purchase a home, closing expenses and maintenance are also significantly lower in Mexico. With the money you save on the purchase of your home, you may afford to make improvements and develop equity, so increasing your retirement portfolio rather than depleting it. Want to boost your retirement savings even further? Leverage the equity you build in your home to invest in additional homes and then rent them out as a holiday rental for passive income. Prosper and live a long life.
Retire in comfort
If you are thinking about retiring in Mexico, please contact us to discuss your housing requirements. We will assist you in locating the home of your dreams within your budget constraints.