HOW TO RETIRE IN

COSTA RICA

And do it on Social Security benefits alone!

MAJOR EXPENSE #1: A

PLACE TO LIVE

These costs can vary

widely depending on

where in the country you

want to live (mountains,

beach, city), and what

kind of amenities are

absolutely necessary.

A PLACE TO LIVE

That being said, most expats

should easily be able to find

something affordable. We have

a two bedroom, one-bathroom

house in a town we love. Our

rent includes water, electricity,

and Internet.

Total = $450 per month

MAJOR EXPENSE #2:

FOOD

Generally, food is just as

expensive in Costa Rica as it

is in the United States.

However, deals can be had at

farmer’s markets. And tiny

“sodas” (mini-restaurants)

offer simple and filling meals

for as little as $4.

FOOD

We have a family of three,

and on average we spend $300

per month on groceries in

Costa Rica, and about $100

per month eating out.

Total=$400

Grand Total=$850

M A J O R E X P E N S E # 3 :

T R A N S P O R TA T I O N

Unlike the United States,

public transportation is

EVERYWHERE in Costa

Rica—cities and rural towns

alike. These are very cheap

options, and are safe and

efficient ways to travel

without having to own a car.

TRANSPORTATION

My family uses the bus and taxi

system every day to get into

town. On average, we spend $35

per month on the bus, and

roughly $100 on taxis (though

many spend much less).

Total=$135

Grand Total=$985

HEALTHCARE

For many retired people,

this is by far the biggest

area of concern. But you

can rest easy: the country

has an excellent healthcare

system, with two different

forms of insurance you

can afford.

HEALTHCARE OPTION #1

If you can show that you have $1,000 of guaranteed income

every month (your Social Security), you can qualify to be

designated as a “pensionado.”

By obtaining this designation, you are required to buy into the

country’s socialized medicine plan, CAJA. The cost is roughly

$50 per month, per person.

TOTAL FOR TWO=$100

GRAND TOTAL=$1,085

HEALTHCARE OPTION #2

However, as is the case with socialized medicine, there can be

long delays for treatment that is not considered life-threatening.

Many expats choose to purchase private health insurance as well.

Bought through the country’s INS, this usually runs between 7%

and 11% of your monthly income. Taking the midpoint, this would

be 9% of the $2,663 Social Security income for you and your spouse.

TOTAL=$240

GRAND TOTAL=$1,325

THE BIG PICTURE

For $1,325 per month, or about

$16,000 per year, you and your

spouse can:

Live in a comfortable house in a

tropical climate.

Eat well.

Be mobile enough to be involved

in your community.

Have suitable medical coverage.

LET’S REVIEW

This means that you could

almost live off of one

person’s Social Security

check.

If your spouse has the

average check as well, that’s

over $1,000 in discretionary

spending every month!

A QUICK CAVEAT

Moving abroad won’t work

for everyone. Some people

simply don’t like the idea.

There will be a time of

cultural adjustment. And

there are certainly

countries other than Costa

Rica that offer the same

type of opportunities.

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