Where It's Most Expensive to Retire: 12 Countries That Drain Your Retirement Savings

Planning a retirement abroad sounds romantic until you see the actual numbers. While many assume moving overseas means stretching their retirement dollars further, the reality often surprises people—plenty of countries are surprisingly expensive to live in, especially for retirees on fixed incomes. Understanding which countries will strain your retirement budget is crucial before making such a major life decision.

GOBankingRates analyzed cost-of-living data from 422 international cities across 131 countries to identify the most expensive places to retire. Their research examined not just headline numbers, but also local purchasing power—essentially, how far your money actually goes in each economy. Based on 2022 data, here’s what they discovered about the most expensive countries to live in for retirees.

The Key Metrics: What Really Makes a Country Expensive

Before diving into the rankings, it’s worth understanding that “expensive” isn’t just about rent or groceries alone. A country might boast low housing costs but punish you with sky-high food prices, or offer affordable basics but hit you with crushing taxation. This is where purchasing power becomes critical—it reveals the real burden on your wallet. Research factors included the overall cost-of-living index, local purchasing power, average monthly rent, grocery prices, and healthcare quality.

Asia-Pacific: Where Costs Reach Global Peaks

Singapore - The Priciest Destination

Singapore claims the top spot as one of the most expensive countries to live in globally. While groceries remain only marginally higher than U.S. prices, the culprit is housing. Monthly rent averages $3,016.21—nearly double what Americans typically pay. This makes Singapore’s overall cost-of-living index reach 85.9, with a local purchasing power of 95.6.

China - Unexpectedly High Costs

China rounds out the Asian top tier with a cost-of-living index of 114.2 and local purchasing power of 118.7. Monthly rent sits at $1,949.17, while groceries are 8.1% higher than U.S. levels. Despite lower labor costs in many sectors, these most expensive countries to live in still shock budget-conscious retirees.

European Powerhouses: When Quality of Life Comes With a Price Tag

Switzerland - Grocery Shock

Switzerland shares China’s cost-of-living index (114.2) but manifests it differently. Here, groceries are shockingly expensive—42.5% higher than the U.S.—while average rent is $1,633.64. Switzerland’s local purchasing power of 118.7 means your dollar doesn’t stretch far despite the higher number.

Iceland - Food, Not Housing

Iceland (cost-of-living index: 83.3) defies expectations by offering surprisingly affordable housing at $1,438.35 monthly. Instead, food prices are the budget killer—groceries run 6.9% higher than America. Local purchasing power of 90.1 compounds the challenge.

Norway - Consistent Expensiveness

Norway is 16.2% more expensive than the U.S. overall, with a cost-of-living index of 88.6. Groceries cost 10.4% more, yet remarkably, rent is reasonable at $941.36 monthly. The local purchasing power of 95 reflects the challenge of the country’s high price structure throughout daily living.

Ireland - Tourist Premium

As a tourist-rich location, Ireland ranks among the most expensive countries for retirement planning (cost-of-living index: 70.5, purchasing power: 82.6). However, it offers some relief: groceries are 16.6% cheaper than the U.S., and healthcare runs 16.8% lower.

Middle-Range Expensive Countries: Still Surprisingly Costly

Malta - The Budget-Friendly Exception

Malta surprisingly offers lower prices across nearly everything. The cost-of-living index is 61.4 with purchasing power of 50.6. Groceries are 19.4% cheaper, and healthcare is 23.2% cheaper than U.S. costs—making it relatively affordable among the most expensive countries to live in by global standards.

Australia - Parallel to America

Australia’s cost-of-living index (75.3) places it on par with the U.S., with both groceries and healthcare running several percentage points higher. Local purchasing power of 110.9 means this most expensive place to live requires careful budgeting.

New Zealand - Nearly Equivalent

New Zealand’s cost-of-living index of 72.9 makes it less than 0.5% more expensive than America overall. Interestingly, groceries are 2% cheaper, and average rent is notably lower at $1,028.04—roughly $500 less than typical U.S. rates. Local purchasing power of 93 affects the calculation, however.

Israel - Selective Savings

Israel’s cost-of-living index reaches 76.4, yet individual expenses tell a nuanced story. Groceries are 7.6% cheaper than the U.S., and average rent is just $1,003.08 monthly. Local purchasing power of 80.5 illustrates why it still ranks among expensive retirement destinations.

Puerto Rico - Cheaper Overall, But Purchasing Power Catches You

Puerto Rico’s cost-of-living index of 67 makes it 5.4% cheaper than the U.S. overall, with groceries 5% cheaper as well. Average rent is attractive at $762.09 monthly. Yet its local purchasing power of just 62.1 creates the paradox: despite lower nominal costs, your retirement income won’t stretch as far.

Lebanon - The Purchasing Power Trap

Lebanon demonstrates how misleading nominal costs can be. While 6.6% cheaper than the U.S. (index: 65.8) and offering rent as low as $558.74 monthly, local purchasing power is devastatingly low at 22.7. Groceries are 6.1% cheaper nominally, but what your money actually buys is severely limited.

The Takeaway: What This Means for Retirement Planning

Retiring to one of the most expensive countries to live in doesn’t mean your dreams are impossible—it means planning carefully. The analysis reveals that true affordability depends on understanding the complete picture: nominal costs, purchasing power, and which specific categories drain your budget most heavily. Some countries offer cheap housing but expensive food, while others flip the equation entirely.

For retirees evaluating options among expensive countries worldwide, the lesson is clear: don’t rely on headline numbers alone. A country might claim lower costs, but weak local purchasing power means your fixed retirement income buys less. Conversely, some expensive-seeming nations might align better with your actual spending habits than expected. Do your research on the specific cost categories that matter most to your lifestyle, and you might discover affordability in places you least expected.