The current strong position of USD may be an incentive to move abroad for one’s retirement. This way people might be able to keep their savings longer. Poland is on the 12th position in the GoBankingRates ranking of the cheapest countries in the world, and tempts with affordability.
The ranking includes 112 countries but 50 first places have been analysed in depth. The ranking creators have focused on 4 categories.
- Local indicator of purchasing power – it measures a relative purchasing power of a regular salary in a country in comparison to a salary in New York. Higher purchasing power enables to buy more products.
- Rent rate indicator – compares rent rates in a country with the rates in New York.
- Grocery price indicator – compares food prices with these from New York.
- Consumer goods price indicator – compares rates of local products and services, for example restaurants, food or transport.
Among the cheapest 50 countries, rent is at least 70% lower than in New York. Groceries are 40% cheaper and consumer goods and services cost at least 30% less. Local purchasing power differs among those cheapest countries. The country which scored the first place, Republic of South Africa, has been named the cheapest place to live.
Poland tempts with a cheap life
Poland was ranked 12, which makes it a quite “attractive” country not only for American pensioners.
Local purchasing power is 26% lower than that in New York. Apartment rent is 88,1% lower, groceries – 69,4% lower, and local goods and services – even 61,3%.
The report authors emphasise that Poland has one of the highest levels of local purchasing power among all of these 50 countries. It means that local earnings are enough to fulfil basic needs. Lower prices of food and consumer goods add up to the equation.
15 cheapest countries in the world:
4. Saudi Arabia
9. Czech Republic
11. Bosnia and Herzegovina
The most expensive countries (ascending):
Republic of South Africa still the cheapest
The report authors have decided that the Republic of South Africa should be placed on top of the ranking. As they point out, the most significant indicator is the local purchasing power level which is significantly higher than in New York.
The Republic of South Africa is the cheapest country to live thanks to platinum, gold and chrome mines. This country is the biggest provider of these raw materials in the world. The mining industry has a big influence on wealth and economy of the RSA.
Besides high purchasing power, the Republic of South Africa also offers lower prices of consumer goods, groceries and rent. In the capital, Capetown, expenses per month amount to ca. 400 dollars. Average rent rate for a single-bedroom apartment is around 280 dollars per month. The weather is also significant because it works in favour of a peaceful retirement.
One of the reasons why I took my American military pension and moved here.