Retiring in Mexico
Thomas Lloyd No Comments

Retirement is supposed to be a time to relax and enjoy the fruits of your labor. You want it to begin early and make it last. Locations with a warm climate, vacation lifestyle and plenty of activities and entertainment sound nice but are often unfeasible on a fixed moderate income. You don’t want to delay retirement, nor sacrifice your quality of life. You simply need to retire somewhere you can live larger on a smaller income. So, you may want to consider the savings you can have by retiring in Mexico.

Here are some reasons why retiring in Mexico can bring you huge savings:

Dollars-to-pesos makes sense

Retiring in Mexico means living on dollars in a peso economy. And because the trending rise of the dollar against the peso is expected to continue, you can expect your retirement savings or Social Security benefits to continue to take you further over time. Stretching your finances means you can retire sooner and live better longer.

Lower expenses, richer lifestyle

Not to mention, the cost of living in Mexico is cheaper, to begin with. Mexico produces most of its own delicious food which keeps costs down. Housing, utilities, medical care, and transportation are also affordable. That leaves you with more to spend on the activities and entertainment that retirement is supposed to be! Being able to enjoy your time leads to a happier- and healthier- retirement. Moreover, who doesn’t want that?

Retiring in Mexico


Choosing where to live is likely the single most significant decision you will make regarding your retirement. After all, accommodation will be your most considerable expense.


A study of 50 major U.S. cities found the median rent of a one-bedroom apartment to be $1,234. in 2018. The lowest among them was just under $500 a month. Housing in coastal towns with warmer climates costs even more. Considering that the average monthly Social Security payment is $1,404., these rents would be untenable. Face it – nobody wants to shovel snow when they retire. Do you?


Perhaps you would prefer to buy a home to retire. Coastal property in Florida, for example, would set you back more than $300K not including closing costs, taxes, and maintenance. Whether you pay cash or take out a mortgage, that’s a large chunk of change to pay from a retirement fund. Your CPA would likely advise against it.

Condos to retire in Mexico

Home in Mexico

Housing is much more pocket-friendly when retiring in Mexico. For the same rates mentioned above, you could live in a 2-bedroom house on or near a beautiful beach. This is true whether you rent or buy your retirement home. So, since you are saving so much per square foot, you could afford to have an extra level of luxury. For example, there are elegant condos for sale near the beach in the coastal Caribbean town Playa del Carmen beginning at under $180k! There is nowhere else in North America with such affordable luxury.


If you buy your home, closing costs and upkeep also cost far less in Mexico. With the money you save on purchasing your home, you can afford to make upgrades and build equity to add to your retirement portfolio rather than just subtracting from it. Want to add even more to your retirement fund? Leverage the equity you add to your home to invest in other properties, and then use it for passive income as a vacation rental. Live long and prosper.

Retire comfortably

If you are considering retiring in Mexico, contact us to discuss your housing needs. We will help you find the home you want with the savings you need.