Couple retires in Spain and lives comfortably on $2000 per month.

[Freedom56]

Very LCOL places in the USA sometimes comes with other issues, such as close access to good medical services, very different culture than MCOL/HCOL places, less services provided, etc.
I can see folks living in these places, but just not for me.

I've passed through many LCOL areas in the USA and I say no thanks, not for us. This is a country where the saying "you get what you pay for" has significant meaning. If we were in their situation, we would probably do the same thing. We also wouldn't want to be in a situation where we rely on handouts from the government. We never have and never will accept that.

 

[Fermion]

I've passed through many LCOL areas in the USA and I say no thanks, not for us. This is a country where the saying "you get what you pay for" has significant meaning. If we were in their situation, we would probably do the same thing. We also wouldn't want to be in a situation where we rely on handouts from the government. We never have and never will accept that.

How do you know that the LCOL areas outside the USA where these articles come from are also not without their own issues?

This is not to mention the fact that some HCOL areas, like Seattle are now near cesspools with a rampant homeless problem, widespread drug use, needles in the grass in the parks and tents and trash under every overpass.

 

[bltkmt]

We will likely be doing something similar in a few years by choice, but on a higher budget. We both love Europe and are looking at Italy, Spain, Portugal and The Netherlands. Yes, we could live in the US on the same budget but the quality of life seems better in Europe in many ways (to us).

 

[aja8888]

It looks really beautiful! Our biggest expense is HI at 1k/month. I am hoping that will go down in 5 years once my husband qualifies for Medicare. Although my sister in Chicago is paying 600/month just for herself with the supplements.

Medicare is no bargain when you need expensive drugs. This coming year, my DW's OOP for her drugs will be over $15,000 and that doesn't include Part D plan premiums or Part B costs. Yes, Medicare is good, just don't get COPD or Cancer.

Between the two of us, with plan premiums and drug costs, we are looking at $22K OOP. (and I am healthy and take one med).

 

[MichaelB]

How do you know that the LCOL areas outside the USA where these articles come from are also not without their own issues?

There’s a lot we don’t know about the location and lifestyle. Spain is a high income developed economy, so a low cost of living probably has much in common with a LCOL location in the US.

The article did highlight a middle aged couple whose cost of living in the US would be severely impacted by health care expense. If they were Medicare age, the comparison would be different.

In Spain health care isn’t free, it is paid by payroll and income tax, and this couple seem to have found a way into that system without the cost.

 

[ShokWaveRider]

Our biggest expense is HI at 1k/month.

Is that all inclusive? or do you have copays, Co-insurance and a Maximum out of pocket. If so great.

But if you Monthly premium is $1k then you have a 6,700 MOOP. Then your total exposure is $18,700 a year or $1,558 per month.

American HC is way too complicated, no doubt purposely so the insurance companies can extract the maximum from their customers.

Even Medicare, the Drugs is the big one as seen in a previous post here. The cost can escalate to astronomical numbers so as to protect the insurance companies and NOT the patrons.

IMHO that is not real healthcare, and certainly not to the benefit of the citizens. It is deplorable.

 

[ShokWaveRider]

In Spain health care isn’t free, it is paid by payroll and income tax, and this couple seem to have found a way into that system without the cost.

Not if they pay taxes, and as residents they will no doubt do. Regardless, the HC costs are leaps and bounds cheaper than the USA's HC at an simply unrealistic cost system.

 

[Bestwifeever]

There’s a lot we don’t know about the location and lifestyle. Spain is a high income developed economy, so a low cost of living probably has much in common with a LCOL location in the US.

The article did highlight a middle aged couple whose cost of living in the US would be severely impacted by health care expense. If they were Medicare age, the comparison would be different.

In Spain health care isn’t free, it is paid by payroll and income tax, and this couple seem to have found a way into that system without the cost.

Not if they pay taxes, and as residents they will no doubt do. Regardless, the HC costs are leaps and bounds cheaper than the USA's HC at an simply unrealistic cost system.

Per the article in the OP the couple pays $130 a month for HI and he also mentions paying less that $100 for a skin cancer treatment, so they don’t have the “free” healthcare that apparently is the standard there for residents.

 

[MichaelB]

Not if they pay taxes, and as residents they will no doubt do. Regardless, the HC costs are leaps and bounds cheaper than the USA's HC at an simply unrealistic cost system.

They are not residents, the article clearly states they are struggling with visa and residency issues, and that they have private insurance. It is an interesting article, but not at all clear whether it could be replicated by any of us.

 

[bigreader]

Exactly. And if they were from Spain, living here in the USA, they would not have this Visa issue.

Not sure I agree. Getting a visa to stay in the US isn't all that easy without the sponsorship of an employer or a university. The US immigration process includes a lot of time waiting on in line, on hold and it is often Kafkaesque. My bet is that the process (US citizen to Spain or Spanish citizen to the US) is equally painful but based upon $2k monthly income, it is easier for a US citizen to retire in Spain than for an EU citizen retire in the US.

If I was living on $2000 a month, I'd prefer to live a middle class life on the eastern coast of Spain to a rural life in a low cost area in the US. That's a choice, not a referendum on your lifestyle. You do you. I do me. It's all good.

br

 

[jim584672]

Another factor to consider is taxes. Does Spain have wealth and / or inheritance taxes? I am familiar with UK taxes a bit, they have a hefty tax system and 40% inheritance tax.

"The standard Inheritance Tax rate is 40%. It's only charged on the part of your estate that's above the threshold. Example Your estate is worth £500,000 and your tax-free threshold is £325,000. The Inheritance Tax charged will be 40% of £175,000 (£500,000 minus £325,000)."
https://www.gov.uk/inheritance-tax

 

[Alan]

Another factor to consider is taxes. Does Spain have wealth and / or inheritance taxes? I am familiar with UK taxes a bit, they have a hefty tax system and 40% inheritance tax.

"The standard Inheritance Tax rate is 40%. It's only charged on the part of your estate that's above the threshold. Example Your estate is worth £500,000 and your tax-free threshold is £325,000. The Inheritance Tax charged will be 40% of £175,000 (£500,000 minus £325,000)."
https://www.gov.uk/inheritance-tax

If you continue down that link and click on the link regarding leaving your main house to your children then then the tax free allowance before inheritance tax is currently £950k for a couple, rising to £1m in a year or 2. The gifting rules are much simpler than in the USA in that you can gift as much as you want without filing any forms. We have already gifted close to $1m to our children and provided one us lives another 4 years it will be totally tax free.

You can also gift as much as you want out of discretionary income, where income is calculated on wages, pensions, interest and dividends.

Still not as generous as in the USA but not much of an issue with a little planning.

 

[bltkmt]

If I was living on $2000 a month, I'd prefer to live a middle class life on the eastern coast of Spain to a rural life in a low cost area in the US. That's a choice, not a referendum on your lifestyle. You do you. I do me. It's all good.

br

Agreed.

 

[omni550]

Per the article in the OP the couple pays $130 a month for HI and he also mentions paying less that $100 for a skin cancer treatment, so they don’t have the “free” healthcare that apparently is the standard there for residents.

The article states that they have private insurance. My German cousin has this and raves about it. With her private insurance, she gets same-day or next-day appointments with the best doctors and specialists around. No waiting for an appointment weeks away, as that's for those on "free" healthcare.

omni

 

[Teacher Terry]

Shock, that’s the premium but co-pays are reasonable. All the drugs I take are cheap. But if you had a major illness you could end up 7k out of pocket. The state really sticks it to retirees. When working our insurance was a bargain.

 

[ShokWaveRider]

They are not residents, the article clearly states they are struggling with visa and residency issues, and that they have private insurance. It is an interesting article, but not at all clear whether it could be replicated by any of us.

Ah OK, I missed that part. They are still liable for taxes if they stay 183 days or more, but not knowing the details it is difficult to ascertain. Regardless they are Paying ~$200 per month for private healthcare which is a reason alone to move there....

 

[Offgrid Organic Farmer]

It's not too surprising that they picked Spain. Many people from Switzerland that we know have retired in Spain as it is too expensive in Switzerland for many.

That is more than what my pension pays us.

 

[Fermion]

Pretty sure his "cancer treatment" amounted to a squirt or two of liquid nitrogen, which would not have cost a lot more than $100 in the USA either.

Get back to me when an ex-pat in Spain can get CAR-T treatment for lymphoma for $100

 

[mystang52]

I'd never leave the USA for many reasons, but out of curiosity I looked up Denia Spain in Google Maps/street view. From what I saw...no thanks.

 

[ejman]

I'd never leave the USA for many reasons, but out of curiosity I looked up Denia Spain in Google Maps/street view. From what I saw...no thanks.

Thank you for the post. I've never been there but from the Google Earth views it looks to me like a typical European seashore town. Could you please be a bit more specific as to what so terrified you?

 

[OldConch]

I'd never leave the USA for many reasons, but out of curiosity I looked up Denia Spain in Google Maps/street view. From what I saw...no thanks.

Just took a tour using street view. Looks pretty nice to me.

 

[mystang52]

Thank you for the post. I've never been there but from the Google Earth views it looks to me like a typical European seashore town. Could you please be a bit more specific as to what so terrified you?

Just took a tour using street view. Looks pretty nice to me.

Nothing "terrified" me. But as soon as one leaves the waterside, the town look like an ugly urban area, and the one "park" I saw wasn't my idea of a park. I didn't mean for my comment to come across as judgmental; to each his/her own. But for me, it looked like an ugly town.

 

[Letj]

If they were here, on $2K a month, they would get free healthcare in MN and many other states.

True but the quality of life here would suck.

 

[AbbA]

I looked at their budget and their activities and they are spending quite a bit more than we do in the USA at near the same ages.

Their apartment: $665
Our apartment: $525

Their electricity: $82
Our electricity: $57

Their water: $33
Our water: $0

Their phone: $44
Our phone: $40 (Visible wireless cell with unlimited internet and tethering)

Their internet: $33
Our internet: $0 (included in cell phone plan)

Their health insurance: $130
Our health insurance: $89 ($910 subsidy for silver plan with cost sharing and max $250 per year oop)

Their food: $490
Our food: about the same.

We have other expenses by choice, like a car but it is not needed where we live. There is a great bus system and the library is across the street, city hall is 3 blocks away, Safeway is 5 blocks away, Wal-Mart is about 1 mile away. Costco is 60 miles away, quite a drive, but how close do they live to Costco?

I mean if you want to be in Spain, be in Spain, but you can live cheaper in the USA with good healthcare.

Wow, which village near Seattle has this kind of COL? I'd be curious to learn more about it. Replace some food with rice and it's $1k/mo. and it's for a couple too. No need to leave the greatest country in the world . WA doesn't have the same weather but one can adapt.
How can we pull a list of such super affordable places in the US?

 

[explanade]

I looked at their budget and their activities and they are spending quite a bit more than we do in the USA at near the same ages.

Their apartment: $665
Our apartment: $525

Their electricity: $82
Our electricity: $57

Their water: $33
Our water: $0

Their phone: $44
Our phone: $40 (Visible wireless cell with unlimited internet and tethering)

Their internet: $33
Our internet: $0 (included in cell phone plan)

Their health insurance: $130
Our health insurance: $89 ($910 subsidy for silver plan with cost sharing and max $250 per year oop)

Their food: $490
Our food: about the same.

We have other expenses by choice, like a car but it is not needed where we live. There is a great bus system and the library is across the street, city hall is 3 blocks away, Safeway is 5 blocks away, Wal-Mart is about 1 mile away. Costco is 60 miles away, quite a drive, but how close do they live to Costco?

I mean if you want to be in Spain, be in Spain, but you can live cheaper in the USA with good healthcare.

Those can't be Seattle prices.

A lot more sun in Spain than in Washington State.

Also within a 1-2 hour flight to all of Europe.