For many Americans, a comfortable retirement can feel financially out of reach, often bringing with it the prospect of cutting back and making compromises. Our new study reveals a powerful alternative for American retirees: the secret to a richer life isn’t just saving more, it’s choosing the right place to spend.
To create a clear benchmark, we analyzed how long a $1 million nest egg would last in 25 popular expat cities across Latin America. The results are remarkable. We found that in some cities, a seven-figure nest egg can last for over 90 years. Even in the most cosmopolitan hubs on our list, the same savings can support a retirement that spans decades, far exceeding what would be possible in most major U.S. cities.
This powerful data provides a roadmap for any retiree. It shows how a strategic move can dramatically upgrade your quality of life, allowing you to live better, not just cheaper.
Key Findings
Our analysis uncovered several surprising trends for retirees considering a move south:
- A Tale of Two Cities: The most critical decision a retiree can make is location. A $1 million nest egg lasts an incredible 95 years in Cuenca, Ecuador, but is exhausted in just 41 years in Panama City, Panama – a 54-year difference between two popular Latin American retirement hubs.
- Colombia Now Offers Better Value Than Mexico: Challenging the notion that Mexico is the default choice for American retirees, the data shows that Medellín, Colombia (#6), is a significantly more affordable destination. Your savings will last nearly 30 years longer in Medellín than in the famed expat enclave of San Miguel de Allende, Mexico (#24).
- The ‘Popularity Premium’ Has Made Famous Mexican Hubs a Bad Bargain. The study shows that the most well-known expat cities are often the most expensive. Decades of high demand in places like San Miguel de Allende (#24) and Puerto Vallarta (#21) have created a “popularity premium,” making them surprisingly costly compared to equally vibrant cities in South America.
- Ecuador Offers Unmatched Financial Stability. Beyond its incredible affordability, Ecuador provides a unique advantage for American retirees: it uses the U.S. dollar as its official currency. This eliminates the risk of currency fluctuations, offering a level of financial predictability in cities like Cuenca (#1) and Quito (#5) that is rare in the region.
How Long Will $1M Last: Interactive Map
The Patterns Behind the Prices: A Closer Look at the Top & Bottom Cities
The data reveals two clear trends driving the cost of retirement in Latin America: a “Popularity Premium” in well-known expat hubs and incredible value in major cities that are often overlooked by North Americans.
The ‘Popularity Premium’: Why Famous Expat Hubs Cost More
An interesting pattern emerges at the bottom of our list: the more popular a destination is with American expats, the faster it drains a nest egg. Three of the five most expensive cities – San Miguel de Allende, Puerto Vallarta, and Mexico City – are in Mexico. This isn’t a coincidence; it reflects a classic case of supply and demand. Decades of popularity have created a “popularity premium,” driving up housing and daily living costs compared to the rest of the region.
The same trend applies to Panama City (#25) and San José (#23). Their stability, modern infrastructure, and established expat communities make them highly desirable, but retirees pay a significant premium for access to those amenities.
The ‘Second City’ Advantage: Finding Value Beyond the Hype
A clear pattern emerges among the most affordable cities: the best value is often found in major urban centers that offer an excellent quality of life but fly just under the radar of mainstream expat trends. Medellín (#6) is a prime example of this “second city” advantage. While increasingly popular, it has not yet experienced the decades of concentrated demand that have inflated prices in Mexico, allowing it to offer a world-class lifestyle at a fraction of the cost.
The same trend is visible in Florianópolis (#7). As one of Brazil’s safest and largest cities, it delivers a secure, high-quality coastal lifestyle without the premium prices of more famous resort towns. This pattern demonstrates that the smartest financial move for retirees is often to look beyond the most talked-about destinations and find value in the established, yet less-hyped, gems of Latin America.
The Full 2025 Expat Retirement Ranking
Here is the complete ranking of all 25 cities, from the most affordable to the most expensive.
| City | Rank | Country | Monthly cost (no rent) | 1BR rent city center | Total monthly cost | Total annual cost | Years $1m will last |
|---|---|---|---|---|---|---|---|
| Cuenca | 1 | Ecuador | $502 | $377 | $879 | $10,548 | 95 |
| Managua | 2 | Nicaragua | $656 | $256 | $912 | $10,944 | 91 |
| Asuncion | 3 | Paraguay | $486 | $436 | $922 | $11,064 | 90 |
| Belo Horizonte | 4 | Brazil | $571 | $399 | $970 | $11,640 | 86 |
| Quito | 5 | Ecuador | $581 | $448 | $1,029 | $12,348 | 81 |
| Medellin | 6 | Colombia | $572 | $523 | $1,095 | $13,140 | 76 |
| Florianopolis | 7 | Brazil | $588 | $537 | $1,125 | $13,500 | 74 |
| Cordoba | 8 | Argentina | $753 | $443 | $1,196 | $14,352 | 70 |
| Santiago | 9 | Chile | $727 | $487 | $1,214 | $14,568 | 69 |
| Lima | 10 | Peru | $589 | $664 | $1,253 | $15,036 | 67 |
| Merida | 11 | Mexico | $705 | $564 | $1,269 | $15,228 | 66 |
| Sao Paulo | 12 | Brazil | $648 | $667 | $1,315 | $15,780 | 63 |
| Santo Domingo | 13 | Dominican Republic | $692 | $637 | $1,329 | $15,948 | 63 |
| Guadalajara | 14 | Mexico | $663 | $749 | $1,412 | $16,944 | 59 |
| Queretaro | 15 | Mexico | $749 | $682 | $1,431 | $17,172 | 58 |
| Buenos Aires | 16 | Argentina | $804 | $672 | $1,476 | $17,712 | 56 |
| Guatemala City | 17 | Guatemala | $757 | $730 | $1,487 | $17,844 | 56 |
| Cancun | 18 | Mexico | $794 | $739 | $1,533 | $18,396 | 54 |
| Montevideo | 19 | Uruguay | $971 | $632 | $1,603 | $19,236 | 52 |
| San Salvador | 20 | El Salvador | $712 | $900 | $1,612 | $19,344 | 52 |
| Puerto Vallarta | 21 | Mexico | $808 | $981 | $1,789 | $21,468 | 47 |
| Mexico City | 22 | Mexico | $760 | $1,064 | $1,824 | $21,888 | 46 |
| San Jose | 23 | Costa Rica | $940 | $890 | $1,830 | $21,960 | 46 |
| San Miguel de Allende | 24 | Mexico | $815 | $1,173 | $1,988 | $23,856 | 42 |
| Panama City | 25 | Panama | $830 | $1,184 | $2,014 | $24,168 | 41 |
Methodology
To determine how long a $1 million retirement nest egg would last, Argentina Expat analyzed the cost of living for a single person in 25 popular expat cities across Latin America.
- Data Source: All cost-of-living data was sourced from Numbeo.com, the world’s largest crowdsourced database on consumer prices and quality of life.
- Data Points: We collected the average monthly cost for a “single person’s estimated monthly costs” and the average rent for a “1-bedroom apartment in the City Centre” for each location.
- Calculation: The total annual cost of living was calculated by adding the monthly living costs and monthly rent, then multiplying by 12. This annual cost was then divided into $1,000,000 to determine the total number of years the savings would last. All data was collected and converted to USD in August 2025.
- Limitations: It’s important to note that reliable, city-level data was not available on Numbeo for some smaller but very popular expat towns. In these cases, we included the nearest major city with available data to provide a general sense of regional prices. This ensures that every city in our final ranking was compared using a consistent and verifiable methodology.