Global Retirement Costs: Study Reveals Varied Financial Needs for Pensioners

Global Retirement Costs: Study Reveals Varied Financial Needs for Pensioners

Global Retirement Expenses: Pakistan Tops List at $158,410

A recent study by Aegon utilizing Numbeo’s cost of living data unveiled the diverse financial needs for retirement across the world.

Pakistan emerged as the most affordable retirement destination, with a requirement of $158,410 for comfortable retirement living.

Financial Needs in Diverse Countries

The study highlighted countries where Americans could retire comfortably with less than $200,000, including India and Colombia.

Nations like Tunisia, Egypt, Sri Lanka, Nepal, North Macedonia, and Kosovo posed a need of less than $300,000, while Algeria ranked at $210,991 for comfortable retirement living.

Expensive Retirement Destinations

In contrast, Switzerland led the chart as the most expensive country, demanding $830,547 for retirement, followed by the US, Luxembourg, Denmark, UAE, and Canada. Singapore ranked highest, necessitating nearly $1.2 million for a comfortable retirement.

Preference for South Asian Countries

The study noted a preference among Americans to retire in South Asian countries due to lower living costs. Countries like India, Pakistan, Nepal, and Sri Lanka offer more affordable housing and healthcare, allowing retirees more financial freedom.

US Retirement Challenges

A related analysis by GOBankingRates revealed the financial challenges in the US, where $1 million in savings would only last around 22 years and 8 months.

Notably, Hawaii emerged as the state where savings would deplete the quickest, lasting merely 10 years, 3 months, and 22 days.

Retirement Account Trends

Despite rising costs, the number of 401(K) millionaires increased by around 100,000 in 2023 due to a thriving stock market. Fidelity Investments reported a rise in account balances, although slightly lower than the previous year.

Saving for Retirement: Investment Insights

Experts suggest different savings strategies for individuals of various ages.

The Motley Fool outlined specific monthly savings amounts required for different age groups to attain $1 million in their 401(K) by retirement age, emphasizing the significance of consistent saving habits throughout one’s career.

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