Chart of the Month – November 2019

Where Can I Afford to Retire?

 

This topic comes up at every dining room table when those who have had their fiftieth birthday are present. We have taken a typical retired or semi-retired couple and with the aid of The Numbeo Estimator calculated a reasonable cost of monthly living. Bear in mind that taxes and medical expenses are excluded from this calculation. What is included is the cost of a two-bedroom apartment; a mid-sized car, an annual holiday and three square meals a day with a few glasses of wine and a date night every week (modest).
These estimates are not excessive and those hoping or expecting to retire shortly would be well advised to calculate their own estimates before choosing the idyllic spot you have chosen to spend your leisure time at the end of forty years of work.

[1] https://www.numbeo.com/cost-of-living/city-estimator

Clearly for those wishing to retire to a life in the major cities of the world New York, London and Paris are all at much the same level and all can see their cost spiral if one chooses to live the high life. For those wishing to live in a European city Lisbon is a good choice and is slightly cheaper than Rome or Madrid.
Moving to Florida or Arizona is not as cheap as one might imagine and as with all U.S. destinations one has to be very well insured against medical mishaps.
For those wishing to stay home and enjoy all that Canada has to offer clearly Toronto and Vancouver are the most expensive and fall somewhere between the excessive costs of New York or London and are similar to the likes of Rome or Madrid. Montreal is the bargain for big city living and most of the mid-sized cities are similarly priced whether one is in the East, West or centre of the country. In all cases one can expect to spend around $50,000 per annum after tax to meet these basic lifestyle expenses. Work with your financial planner or portfolio manager to customize your own target and determine whether you are on track to reach your lifestyle objectives.