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Costa Rica Retirement: Lower Costs, Higher Lifestyle

• by crv.staff
• 11.12.10
• 8:05 AM UTC

• Filed in Costa Rica

Source : The Costa Rica News

So let’s talk money. Just how much can you save by living as a pensionado here in Costa Rica? For Baby Boomers facing the end of regular earnings, the question of how to stretch retirement income is a very real issue. With limited savings, reduced home equity (if they can sell at all) and an average Social Security benefit of around $1200 per month for an individual and $1750 for a couple [1], most retirees will have to cut expenses one way or another. Even at the maximum benefit amount of $2,346 [2], a mere $28,152 per year before taxes, those of us who have enjoyed the advantages of a moderate income will undoubtedly have to find ways either to increase that income or minimize expenditures.

At first glance, these are not pleasant prospects for most of us. Accustomed to the good things in life, it may be difficult to face up to a lower standard of living. But the 2008 U.S. Census Bureau statistics on Income and Earnings by Age of Householder [3] reveals the stark realities: According to their report entitled “Income, Poverty, and Health Insurance Coverage in the United States: 2008,” measuring all sources of money income, we find that the median income for 45 to 54 year old householders was $64,349; for the next age group, 55 to 64 year old, the median figure drops slightly to $57,265; but for the over 65 year old group, the slide is precipitous, to $29,744. The message is clear. After retirement, you can expect a negative change in your financial situation.

But here’s the good news! With retirement comes a unique opportunity to make some important changes in your life — to simplify, downsize, reduce the clutter, re-prioritize and finally do some of the things that full-time work has prevented you from doing. Volunteer work, enjoying a hobby, traveling, getting more exercise, experiencing less stress – whatever it is, we all hope our Golden Years offer the time and space to pursue those dreams. And they can if you consider the advantages of retirement in Costa Rica, where your limited income fits nicely with the lower cost of living.

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