I moved to Mexico in 2018. Back then, I got tons of “but it’s so unsafe” warnings, and “are you sure?” inquiries from well-meaning friends, family and co-workers.
However, after the you-know-what in 2020, many of those same people were able to work remotely, and they traveled to Mexico in droves to do so. (Guess it was safe enough after all 🤷♀️)
Today, as the cost of living in the U.S. and Canada continue skyrocketing at alarming rates, more and more people are moving to Mexico, or at least considering it.
Are you next? Check out the info below to see roughly how much it will cost, but more importantly, what to expect that you’re probably not anticipating.
Is Retirement in Mexico Right for You?
Mexico’s appeal lies in its varied climates, landscapes, communities, and friendly locals who rank as some of the happiest people in the world.
Whether you’re drawn to the eternal summer of coastal regions or the temperate, culturally rich highlands, there’s a perfect spot for everyone.
The proximity to the U.S. and Canada is a bonus, ensuring that familiar products and brands are readily available.
The cost of living in Mexico remains one of its most attractive features — and I’m definitely going to break that down for you in a bit, but I want to make sure you understand what you’re signing up for.
I’ve been living in Mexico since 2018, and I love it, but I also know it’s not all sunshine and rainbows (OK, there’s a lot of sunshine; but still).
While it’s true that daily expenses, healthcare, and housing are significantly more affordable in Mexico than in many parts of North America, you actually have to like the country if you’re going to live in it full time.
What’s the Best Place for You to Retire in Mexico?
Mexico offers a range of environments to suit any preference.
Coastal areas like Puerto Vallarta and the Riviera Maya are perfect for beach lovers, while Central Mexico cities such as San Miguel de Allende and Ajijic offer cooler weather and rich cultural experiences.
For those who prefer city life, big cities like Mexico City and Guadalajara provide the hustle and bustle of urban living alongside historical sites and delicious tacos.
When considering where to live, think about your priorities — climate, community size, access to healthcare, public transport, and lifestyle are all important factors.
Many retirees choose to start with a temporary stay, renting in various locations before settling down. I did this before buying a home in Mexico.
In fact, I lived in Mexico City, Playa del Carmen, Oaxaca City, Guadalajara and Merida before choosing a place to live. Spoiler: I didn’t buy my home in ANY of those!
This exploratory phase is crucial for finding your ideal Mexican home, and in fact, whenever anyone asks me about moving to Mexico, my advice is always to spend six months in a few cities in Mexico before you decide.
One of the longest travel visas of any country, Mexico offers a six month tourist visa — so I encourage you to take full advantage of that before fully moving.
Healthcare in Mexico is High Quality and Affordable
One of Mexico’s biggest perks is its healthcare system, known for being both high-quality and affordable.
Many doctors and dentists are U.S.-trained, and the country is renowned for its medical tourism with more and more Americans traveling to Mexico for their health care needs each year.
Major cities boast well-equipped hospitals that are often much more accessible than those in the U.S. or Canada.
For residents, Mexico offers health insurance options through the Instituto Mexicano del Seguro Social (IMSS) and Instituto de Salud para el Bienestar (INSABI), providing comprehensive care at a low cost.
Private health insurance is also an option for those seeking broader coverage. I personally have Nomad Insurance with SafetyWing, and always recommend them.
Mexico Real Estate: Renting and Buying
Housing costs in Mexico can vary widely depending on the location and property type.
Coastal and tourist-heavy areas generally feature higher prices, but it’s possible to find affordable homes just about anywhere in the country.
The process of renting or buying can be streamlined with the help of local real estate agents and online expat communities, particularly Facebook groups. (To find them, search “city name in Mexico + expats” on Facebook).
Long-term rentals often require a lease agreement and a deposit, along with proof of income. Online platforms like Airbnb or VRBO work well circumventing for this.
Buying property might involve more complex steps, but local advisors and lawyers can guide you through the process, ensuring a smooth transition to your new home.
When the time comes to buy, you should be able to find a comfortable two-bedroom option in a good neighborhood for less than $200,000 USD.
As housing costs fluctuate, check out Propiedades and Inmuebles24, two of the biggest Mexican real estate sites, to get a better idea of current prices.
Safety and Community in Mexico
While concerns about safety in Mexico can be daunting, most expatriate communities are located in areas known for their low crime rates and welcoming locals.
Common sense precautions like avoiding risky areas at night and securing personal belongings can help ensure a safe and enjoyable experience in Mexico.
With so many expats in Mexico, the local expat communities in various areas are vibrant and supportive, offering a built-in social network for newcomers.
These communities often organize events, cultural activities and holiday gatherings that make it easy to socialize, meet people and get settled.
Just How Much Money Do You Need to Retire in Mexico?
So, how much does it cost to live this dream in Mexico?
With more than 1.6 million Americans already calling Mexico home, this country offers a diverse array of living options, from bustling cities to tranquil beach towns.
What you spend will vary a lot based on your location, but also your needs, wants, and deal breakers.
As it would be impossible to tell anyone the exact dollar amount they’d need, here’s a guestimation:
A couple can live comfortably in Mexico on about $3,000 per month, and this includes housing, utilities, food, transportation, and healthcare.
🏡 Housing
Depending on where you are, a modest but comfy two bedroom in a safe area should be about $750-$1,500 USD.
If you want a spacious two-bedroom apartment with a nice view and a doorman in Mexico City or other high-cost areas like Puerto Vallarta, you’ll likely spend $1,500-2,500 USD.
Of course, you can spend less, or you can spend much more than any of those listed amounts.
🔌 Utilities
The thing I was shocked most by in Mexico was the cost of utilities, and how low they are — though if you run the AC all day everyday, your bills can add up.
Electricity: Some expats pay less than $10 USD per month for electricity, but they really keep their electricity consumption in check by limiting use of air conditioning or space heaters.
If you don’t use electricity sparingly, as in heavy air conditioning and heating use, and using the dryer and other high-wattage appliances daily — you could be looking at a $50-75 USD per month electricity bill.
Water: Tap water is inexpensive in Mexico, and unless you water your lawn or hose down the patio frequently, you’ll likely spend about $20 per month.
Internet: Mexico has several internet providers, like Telmex, Izzi, Total Play, which offers packages for high-speed internet (10 Mb+) and cable TV for as low as about $25 USD per month.
Cell Phone: Cell phone plans are much cheaper in Mexico, and you can get one for about $20 USD per month with unlimited calling in North America, and 2 Gb of data.
Drinking Water: Unfiltered Mexico tap water is not potable, so most people get garrafones (five gallon jugs) of purified water delivered to their house.
They cost about $3 USD each with delivery, and less if you fill them yourself.
🌮 Food
Nearly everything at grocery stores in Mexico costs less than in the U.S. or Canada, and in my opinion, the quality is much better too.
My household of two spends about $250 USD per month at the grocery store, and another $250 eating out — though we could easily keep our food cost down if we wanted to.
🚙 Transportation
In many places, you don’t need a car. If you don’t have one, that will cut down significantly on your transport costs.
Many cities are walkable, and also have at least decent public transportation. You can also take Ubers or taxis, which average about $3 USD for a 20 minute ride.
The process for buying a car in Mexico can be a bit confusing for foreigners, but you’ll also need a Temporary Residency Permit (Green Card) to do so, which usually comes after being in Mexico a while.
🩺 Health Insurance
I have Nomad Insurance with SafetyWing, and always recommend them because their plans are affordable at less than $150 USD per month for up to $1.5 million USD in coverage.
This is about 25 million MXN pesos, and for reference, a normal doctor check-up is about $1,500 pesos, so it would take a lot to see a 25 million peso doctor bill.
I also know people who don’t have insurance because the cost to see a doctor or even a surgeon is so much less than in the U.S., and they just pay as needed and put money aside in a health emergency fund.
🍻 Entertainment
Things like sporting event tickets or going to the movies in Mexico will cost about $5-10 USD. A gym membership is also inexpensive at about $20 USD per month.
Going out to eat at a nicer restaurant will be about $20 USD per person, and a Mexican beer will cost you about $2-3 USD.
As mentioned, these costs were all a guesstimation — but this budget allows for a lifestyle that might cost twice or three times as much as in the U.S. or Canada.
…But Can You Embrace the Mexican Lifestyle?
Retiring in Mexico isn’t just about enjoying a lower cost of living — it’s about embracing a new lifestyle at a much slower pace than you might be used to.
The warm weather, delicious food, and rich cultural tapestry offer an enriching experience that many retirees cherish.
Whether you’re looking for adventure, relaxation, or a mix of both, Mexico provides a backdrop for a truly memorable retirement.
With careful planning and consideration, you can make the most of what Mexico has to offer and retire in style and comfort.
As you consider your options for retirement, think of Mexico not just as a place to live, but as a place to thrive.
The combination of affordable living, high-quality healthcare, and a supportive expat community makes it an ideal destination for starting your new life chapter.
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