![\"Happiness](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/09\/senior-mature-retired-couple-happy-dancing-outside_iStock-1343317146.jpg\")
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Commitment to Our Readers<\/p>\n
GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n 20 Years<\/strong> Trusted by<\/strong> Let\u2019s face it, life in the U.S. is expensive.<\/a> Just ask workers who participated in a late 2024 Charles Schwab 401(k) Participant Study<\/a>. They expected to need $1.8 million to retire comfortably<\/a>. Contrast that with the average American retirement account value of $491,022, according to Empower, and you have trouble in paradise.<\/p>\n The answer for more than two million Americans and Canadians is Mexico, where the average cost of living is a whopping 61% less than in the U.S., according to LivingCost.org. Perhaps that\u2019s why International Living cites Mexico as the most popular foreign country in the world for Americans to live. <\/p>\n<\/p>\n Here are three key indicators of why retirees\u2019 money goes further south of the border.<\/a><\/p>\n Housing Costs<\/p>\n If you\u2019ve paid off your mortgage<\/a>, housing costs might not be a huge concern. But for many retirees, this is a major expense. And the difference between the U.S. and Mexico is stark. According to LivingCost.org, the average rent for one person in Mexico is $442 a month, compared to $1,592 in the U.S.<\/p>\n If you want to buy, the differences are just as eye-popping. According to Zisla, in Mexico, the average home prices range from $100,000 to $120,000 for a simple home, to $116,000-$232,000 for a mid-range home, to $580,000 and up for a luxury home.<\/p>\n Here in the U.S., the average home value is $363,505, according to Zillow. And luxury homes? According to Redfin News, the average luxury home sold for $1,348,065 in April 2025. So, yeah, slightly more than Mexico.<\/p>\n Healthcare Costs<\/p>\n According to International Living, healthcare costs in Mexico are roughly half of what they are in the U.S. They point to the average cost of a dental implant \u2014 $1,650 in Mexico versus $3,400 in the U.S. \u2014 and a coronary artery bypass \u2014 $73,000 in the U.S. versus $27,300 south of the border.<\/p>\n If you don\u2019t have employer-sponsored or government-sponsored health insurance, and are not yet 65, you\u2019ll need to pay for your own health insurance<\/a> in the U.S. According to the Urban Institute, the average monthly premium for 60-year-olds was $986. At 64, that number was $1,081. According to International Citizens Insurance, the cost of comprehensive health insurance for an American living in Mexico is $5,900 per year, or $492 per month.<\/p>\n<\/p>\n Everyday Living Expenses<\/p>\n The cost of living in Mexico is substantially lower than in the United States, according to LivingCost.org. Their data states that the per-person cost of living<\/a> in Mexico is $978 versus $2,504 in the U.S.\u00a0According to SmartAsset, a retired couple needs about $30,000 a year to retire in Mexico. <\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-20.svg?webp=1&quality=75\"){kind=icon}
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