10 Affordable Islands To Retire (2024)

Looking for affordable islands to retire to that won't cause a massive dent in your bank accounts? The world has many incredible islands for retirement, from islands to retire to in Europe to beautiful Caribbean islands ideal for retirees, but it's not uncommon for them to cost a premium when it comes to housing, rent, and general living costs due to their desirability. That said, there's actually a wide selection of cheap islands to live on as a retiree, although not all of them are created equal.

Some Caribbean Islands are perfectly affordable for retirement without compromising on quality of life, for example, and there are even a handful of exotic islands to retire to for less than $1,800 a month. However, many retirees might prefer to search wider afield for a place to live in their golden years. These examples of affordable islands for retirement show just what's available for seniors who want to experience somewhere exotic as they get older.

This list was created by extensively researching islands that are affordable to retire to, taking into account specific factors that are favorable to retirees. Every effort was made to find affordable options. We paid attention to the cost of living in each area, especially the cost of rentals, along with quality of life scores. Each cost of living average was calculated on a per-person basis.

Based on affordability and lifestyle factors for golden agers, these are some of the most affordable islands in the world to retire to and enjoy one's golden years.

10 Penang, Malaysia

Slightly more expensive (but worth it), with a monthly living cost of $1,287 per person

As one of the world's affordable islands to retire to, Penang stands out with an unbeatable combination of tropical living, rich culture, and low costs. The "Pearl of the Orient" boasts beautiful beaches, vibrant street food scenes, and colonial architecture (historically, Penang was a British overseas colony - that's why electrical sockets are the same as those found in the United Kingdom!). In particular, colonial Georgetown in Penang is a popular place for expats and offers lots to do and see, making for a great retirement base for city lovers.

Meanwhile, throughout Penang, world-class healthcare facilities provide comprehensive elderly care at a fraction of Western prices. With an idyllic climate, thriving expat community, and cost of living up to 57% lower than New York City, it's no wonder Penang, Malaysia, ranks as one of the top retirement havens in Asia where a couple can live comfortably starting from around $1,500 per month.

• Average Rental Costs:$437 - $566
• Average Salary:$1,485
• Quality of Life Index:61

9 Isla Mujeres, Mexico

Not too expensive at an average living cost of $1,048 per month per person

Just off the coast of Cancun, there are many reasons to visit the island of Isla Mujeres. However, it's not just for tourists; it offers retirees a slice of Caribbean paradise at an affordable cost. This former fishing village has retained its laid-back charm, boasting stunning beaches, waterfront restaurants, and a vibrant downtown.

Healthcare is excellent and inexpensive, with the cost of living around 50% lower than in the US. A thriving expat community, near-perfect climate, and easy access to the Mexican mainland make Isla Mujeres an idyllic yet affordable retirement haven.

• Average Rental Costs:$741 - $1,261
• Average Salary:$749
• Quality of Life Index:34

8 Caye Caulker, Belize

Monthly living costs average around $942 per person

As one of the most affordable islands to retire to in the world, Caye Caulker immerses retirees in a warm and friendly atmosphere. Part of Belize's offshore cayes, it features sandy streets, colorful wooden houses, and no cars - just golf carts.

There are also plenty of fun things to do in Caye Caulker for retirees; the coral reefs provide excellent snorkeling and diving, and the beaches are just stunning for lounging and taking in the scenery. While lacking major medical facilities, Caye Caulker is just a water taxi ride from world-class healthcare in Belize City. With a relaxed vibe, low costs, around 50% less than in the US, and perfect tropical weather, it's an ideal retirement paradise.

• Average Rental Costs:$353 - $928
• Average Salary:$1,362
• Quality of Life Index:35

7 Cozumel, Mexico

An affordable monthly living cost averaging about $940 per person

Another of the many cheap islands to retire to is Cozumel in Mexico. The island of Cozumel offers retirees an enticing mix of Caribbean charm and Mexican culture at an affordable price. This laid-back destination is renowned for its pristine beaches, top-notch diving and snorkeling, and lively expat community. Cozumel is also relatively safe, making it attractive to retirees.

Quality healthcare is accessible and inexpensive in Cozumel as well. With the overall cost of living around 55% lower than in the US, a warm tropical climate year-round, and easy access to the Yucatán mainland, Cozumel provides an ultra-affordable tropical retirement haven.

• Average Rental Costs:$471 - $1,163
• Average Salary:$705
• Quality of Life Index:36

6 Dominica

A beautiful Caribbean retirement spot with an average monthly living cost of $900 per person

The "Nature Island" of Dominica offers a lush, unspoiled tropical paradise for retirees. With dramatic landscapes of volcanic peaks, rainforests, and black sand beaches, it's a hiker's dream.

The laid-back island lifestyle and low cost of living in Roseau, which is around 50% less than in the US, make it one of the Caribbean's budget-friendly islands to retire to. Dominica's citizenship by investment program also allows for acquiring economic citizenship. For those seeking an off-the-beaten-path, affordable Caribbean haven, Dominica delivers.

• Average Rental Costs:$378 – $1,088
• Average Salary:$435
• Quality of Life Index:52

5 Bali, Indonesia

A beautiful Southeast Asian island with an average monthly cost of living of $873 per person

One of the most stunning yet affordable islands to retire on in the world is Bali. The "Island of the Gods" has emerged as a top retirement destination for its idyllic scenery, rich culture, and extremely low costs.

On Bali, retirees can immerse themselves in spiritual traditions, explore ancient temples and historic sites in Bali, or simply relax on pristine beaches. World-class healthcare is available at a fraction of Western prices, with the overall cost of living around 65% lower than in the US. A thriving expat community, tropical climate, and incredible affordability make this Indonesian paradise hard to resist for retirees.

• Average Rental Costs:$604 - $2,266
• Average Salary:$290
• Quality of Life Index:58

4 Cebu Island, Philippines

A stunning island with a monthly cost of living of around $735 per person

The Philippines has lots of budget-friendly destinations spread across its over 7,000 islands. However, a wallet-friendly place favored by expats and retirees is Cebu, which offers retirees an enticing tropical haven at bargain prices.

The island is well-connected to most destinations in the Philippines and provides a quintessential Philippine experience with its Spanish colonial heritage, vibrant festivals, and friendly locals. Plus, most of the people in the Philippines speak English fluently, potentially removing language barrier issues for retirees.

Hospitals ensure quality healthcare at low costs, with the overall cost of living around 70% cheaper than in the US. A thriving expat community, perfect climate year-round, and incredibly affordable beachside living make Cebu one of the top affordable retirement destinations in Southeast Asia for those on a budget.

• Average Rental Costs:$449 - $567
• Average Salary:$398
• Quality of Life Index:59

3 Koh Samui, Thailand

Average monthly living costs per person are around $642

Very high up on the list of desirable, affordable tropical islands to retire to around the world is Koh Samui. This tropical island paradise offers retirees an idyllic and low-cost utopia in the Gulf of Thailand. Gorgeous beaches, lush mountains, Buddhist temples, and a thriving expat community create an alluring environment.

Thailand's excellent, inexpensive healthcare is easily accessible from Samui. With an overall cost of living around 65% lower than in the US, perfect weather year-round, and a range of long-stay visa options, it's no surprise Koh Samui ranks as one of the best islands to retire to around the world for those on a budget.

• Average Rental Costs:$321 - $640
• Average Salary:$604
• Quality of Life Index:38

2 Phu Quoc, Vietnam

Living costs per person per month average $524 per person

The Vietnamese island of Phu Quoc is rapidly emerging as a secret retirement paradise for its stunning beaches, relaxed vibe, and rock-bottom costs. Part of its appeal is the availability of world-class, affordable healthcare and modern amenities paired with an extremely low cost of living at around 70% less than in the US.

This idyllic tropical island provides an unbeatable beachfront retirement on a budget, with a thriving expat community and new direct flights making it easily accessible from abroad.

• Average Rental Costs:$254 - $727
• Average Salary:$370
• Quality of Life Index:33

1 Roatan, Honduras

With an average living cost of $344, Roatan might be the most affordable island to retire on

The Caribbean island of Roatan offers retirees an idyllic, affordable tropical haven off the coast of Honduras. This former pirate haunt has become one of the most affordable retirement destinations in the tropics for its stunning beaches, remarkable reef diving, and extremely low costs. The overall cost of living is around 65% lower than in the US, potentially making it the cheapest island in the world to retire on.

Quality healthcare is also available through modern private hospitals and clinics. With a large expat community, relaxed island pace, and near-perfect weather year-round, Roatan provides an ideal, budget-friendly retirement paradise.

• Average Rental Costs:$428 - $967
• Average Salary:$545
• Quality of Life Index:45