The 7 Most Affordable Countries in South America for Retirees: A Cost Comparison Guide

Looking for the cheapest places to live in South America? If you’re a retiree concerned about stretching your dollars further, Latin America offers compelling alternatives with dramatically lower living costs than the United States.

The region attracts American retirees with its tropical settings, coastal scenery, relaxed lifestyle and most importantly—exceptional affordability. While Mexico has traditionally been the popular choice, several other destinations in Central and South America now present superior healthcare infrastructure, safer communities, more English proficiency and significantly reduced expenses to support a comfortable retirement.

“Across these areas, everyday expenses and services cost substantially less compared to American prices,” explains real estate investor Benjamin Njila Fields. “More retirees are discovering Central and South America as relocation destinations than ever before.”

One concern for retirees involves extending Medicare coverage internationally. Fields notes: “Although transferring Medicare presents complications, private insurance alternatives in these countries prove far more economical with comparable quality care.”

Understanding the Cheapest Places to Live in South America

Our analysis examined housing costs, essential goods, utilities and general living expenses across multiple Latin American nations based on moderate lifestyle standards. We focused on countries with strong life expectancy figures, ensuring reliable healthcare infrastructure.

Budget-Friendly Tier: Under $600 Monthly Housing

Colombia leads as the most economical option with average monthly housing at just $548. Life expectancy reaches 78.04 years. Bogota offers one-bedroom rentals around $394.50 with two-bedroom units averaging $586.50. Total monthly expenses range from $1,000-$2,000, with electricity costs remarkably low at approximately $32 monthly for couples.

Paraguay follows closely at $555 monthly housing costs and a 74.70-year life expectancy. This nation exports substantial agricultural products and provides hydroelectric energy to neighboring countries. A significant advantage: retirees receiving U.S. income face no local tax obligations. Healthcare and household expenses remain highly affordable.

Argentina offers $576 monthly housing with a 77.32-year life expectancy. The nation provides strong quality of life through its developed industries, tourism sectors and cultivated resources. Rent averages 81.8% lower than American pricing.

Mid-Range Options: $600-$750 Monthly Housing

Nicaragua features $625 monthly housing and 75.43-year life expectancy, costing 3.61 times less than America. Retired couples establish comfortable lifestyles from $1,500 monthly including housing and living expenses. Home purchases start around $100,000.

Brazil presents $661 monthly housing costs with 76.38-year life expectancy. Beyond Rio de Janeiro’s renowned attractions, the country offers abundant natural beauty, cultural richness and beach lifestyle. Living expenses run 3.15 times lower than the United States.

Peru averages $672 monthly housing with 77.65-year life expectancy. Diverse geography spans Andean mountains, Amazon rainforest and coastal regions. Outside Lima, monthly living costs range $1,500-$2,000 with rents averaging 76.8% below American rates.

Premium Value Option: $750+ Monthly Housing

Ecuador rounds out the list at $750 monthly housing and 77.90-year life expectancy. Located on South America’s northwestern equator point, the nation has developed through oil industry revenues supporting education and healthcare advancement. Government healthcare enrollment costs only $95 monthly ($85 for singles). Overall living expenses run approximately three times cheaper than American retirement costs.

Each of these cheap places to live in South America offers distinct advantages—whether you prioritize tax benefits, healthcare quality, cultural experiences or maximum cost reduction. Private health insurance across these nations typically costs far less than U.S. premiums while maintaining comparable medical standards, making them increasingly attractive for budget-conscious retirees exploring affordable international living options.