If you are planning to retire, how much to retire in Mexico? A retired couple can
· Retire on a monthly income of $2500 monthly
· $30,000 annually
Mexico is a very affordable country for retirees to live on an average annual income, so if you are looking for a place to retire outside your home country, you should give Mexico a try. This article contains relevant information to help you plan your relocation, so make sure you read it until the end.
Retiring In Mexico
Mexico is a pleasant country with good weather, picturesque scenery, and tasty food. For these reasons and more, many people prefer to make it their dream abode for retirement. If estimates are anything to go by, there are more than 1.5 million Americans living in the country.
And many more foreigners, particularly from other Western nations live here on a temporary resident visa. Two of the main reasons why Mexico is a top choice for many are the weather and the affordable cost of living, especially for those who draw their retirement benefits from outside the country.
We understand that retiring to a new country takes a lot of planning, so we want to make the transition easier for you.
How Much To Retire In Mexico: Average Retirement Cost In Mexico
For a retired couple who would like to make Mexico their home on an average income, they can live comfortable lives on a monthly income of $2500 or a yearly income of $30,000 based on conservative figures. If you adjust for inflation and add an extra $5000 to the annual living cost, that will be around $35,000 a year or $2850 a month. These figures are very low by Western standards when looking at living costs in Europe and major US cities.
For a retired couple who would like to make Mexico their home on an average income, they can live comfortable lives on a monthly income of $2500 or a yearly income of $30,000 based on conservative figures. If you adjust for inflation and add an extra $5000 to the annual living cost, that will be around $35,000 a year or $2850 a month.
These costs will settle rental costs, a maid service, groceries, health insurance, and entertainment, and a little extra for more. This may sound ridiculous it is true. This is why many foreigners from Europe and the US visit Mexico and are pleasantly surprised at how much just a few dollars and Euros can buy them.
Factors That Influence Cost Of Living In Mexico
As a retiree, you should know some of the factors that influence living costs in Mexico. If you do, you will be better placed to plan your finances ahead and when you eventually move to the country.
The biggest factor is the location. Mexico is a big country with a series of large and small towns and cities, resort and rural areas and villages. As a retiree, how much you spend on living costs will depend on where you choose to live. If you live in a highly populated city like Mexico City, you will pay more for rent and other services compared to a place like Sinaloa.
Resort locations are also very expensive to live in. So consider this when planning your move to Mexico. To save costs you may opt for cheaper cities like San Miguel de Allende.
The second most important factor is your lifestyle. Even if you live in an affordable city, an expensive lifestyle may bore a fee hole in your pocket. Eating at expensive restaurants, going for weekly massages, drinking expensive wines and cocktails, and going on vacations at any of the numerous resorts are expensive habits that may not be negative but will cost you more money.
You should also plan for affordable healthcare by buying local health insurance.
If your desire is retiring abroad, you want to keep an eye on the exchange rate if you earn your pension in a foreign currency like the US dollar. To spend what you earn, you will have to convert it to Mexican Pesos, and the Bureau du change merchants who offer these services charge a commission.
The higher the amount of money you wish to convert, the more commission they charge for the conversion. So consider opening a Mexican bank account and receive your payments directly in Pesos to reduce conversion costs.
Getting A Mexican Visa
Many foreigners who plan to retire to Mexico fail to include the documentation cost to get a temporary or permanent resident visa status, but they should. To enter and settle in Mexico, you need to apply for a visa. There are different types of visas, but the most popular ones are
· FMM (valid for 6 months)
· Temporary visa (valid for 1 year with the option for renewal)
· Permanent visa (issued after holding a temporary visa for 4 years)
FMM (Forma Migratoria Multiple) is issued to nationals from visa-free countries, and the fee is $30 or a little above that, and it is valid for 6 months. If you are not from a visa-free country, you can apply for a temporary visa which lasts for four years.
A temporary visa is only issued if you meet the conditions and financial criteria. You will have to prove beyond reasonable doubt that you can support yourself financially by showing your retirement funds or bank statement for savings and other financial assets.
Financial Requirements To Retire In Mexico
The criteria used depends on the Mexican consulate, but they generally use the current living costs and minimum wage in Mexico as of the time of your application. Some consulates will expect to see proof of a monthly living income of $1620 for individuals or a bank statement with a bank account balance of $27000.
If you can prove that you have the financial capacity to sustain yourself and retire comfortably, then the visa will be issued to you. How much to retire in Mexico will depend on your lifestyle and where you live.