Edd and Cynthia Staton made a bold move that turned out to be beneficial. The concept of relocating to another country appears appealing. A lot of people believe that this path is reserved for the wealthy elite.
According to the Social Security Administration, more than 500,000 retirees from the U.S. collect their benefits while residing outside of the nation. Numerous other retired expatriates have their monthly payments directed to a bank in the States. A significant factor driving individuals to retire abroad is the desire for a reduced cost of living.
The financial crisis affecting baby boomers is considerable. Approximately 43% of those between 55 and 64 years old lack any retirement savings. The Statons faced the sudden loss of their jobs and a large portion of their savings due to the Great Recession.
It became apparent to them that they could not bounce back from this significant financial blow. Their answer was to retire early, utilize their remaining assets, and embark on a new chapter of life in a foreign country. The affordable cost of living in Ecuador, along with their combined Social Security income, enables them to enjoy a lavish lifestyle for about $2,000 each month.
They live in a penthouse, enjoy fresh flowers, have a cleaning service, and maintain gym and yoga studio memberships, indulge in regular massages, and dine out several times weekly.
Affordable Retirement in Ecuador
In Cuenca, the prices of fruits, vegetables, meats, and fish are very low at local markets.
However, some products, especially those imported, can be more expensive. Grocery expenses vary depending on the shopping location and items purchased. The Statons are surrounded by numerous dining options in their area and often choose to eat out.
Sometimes, dining out can be less expensive than cooking at home. A meal at their preferred lunch venue includes a glass of freshly squeezed juice, a bowl of soup, two choices for the main dish, and a small dessert, all for just $3.50. Residents of Ecuador aged 65 and above enjoy designated lines at banks and grocery stores and benefit from senior discounts.
Their fast, fiber-optic internet service costs $25 a month, while cell phone plans are only $8. They receive a complete refund for most purchases, up to $108 per month, on sales tax. For those who travel frequently, a 50% discount on flights from Ecuador can lead to savings of hundreds of dollars on individual trips.
Many areas worldwide provide similar economical living situations. Other expatriates are enjoying relaxed, comfortable retirements across Latin America, Europe, and Asia, supported by their Social Security payments. If you’re concerned that your retirement funds are insufficient or worried about outliving your savings, considering a move abroad might be a viable solution.
