Where Are The Cheapest Places In The World To Retire? (Answer might surprise you)

Overview

The presenter argues that the cheapest retirement destinations should not be chosen on living costs alone. For UK retirees, the key financial checks are whether the UK State Pension is uprated there, whether visa income rules are affordable, and how healthcare will be funded.

Costs and pension rules

The best-known low-cost destinations cited are Sri Lanka, Vietnam, Thailand, Bali, and Malaysia. International Living is quoted as estimating that a couple could live in Sri Lanka for about £744 a month.

Using Numbeo’s mid-2026 cost-of-living comparison, the presenter gives these approximate costs for a lifestyle costing £1,000 in the UK:

• Vietnam: £370
• Philippines: £380
• Thailand: £510
• Türkiye and Bulgaria: about £540
• Spain: about £750

The presenter says the UK State Pension increases in the EEA, Switzerland, Gibraltar, the Philippines, Türkiye, and the United States, but is frozen in some popular destinations, including Australia, Canada, and New Zealand. The subtitles conflict on whether the Philippines belongs among frozen-pension destinations; later comparisons classify it as a country where the pension rises.

A pension frozen abroad does not receive annual increases. The presenter estimates that over 20 years, freezing would cost about £80,600 compared with a pension rising by 2.5% a year. By year 20, the rising pension would be about £21,400, leaving the frozen-pension recipient roughly £8,300 a year behind.

Citing DWP figures, the presenter says UK pensioners in their 90s in frozen-pension countries receive an average of £1,896 a year, compared with about £4,803 for those living in countries where the pension continues to rise. The presenter also says a frozen pension returns to the current rate if the recipient moves back to the UK.

Visas and healthcare

The presenter estimates a full UK State Pension at about €15,400 a year. The visa income requirements cited are:

• Spain: €28,800 for one person; about €36,000 for a couple
• Greece: about €42,000
• Portugal: a little over €11,000
• Cyprus: about €9,600

Two full State Pensions are put at about €30,800, so the presenter says a couple relying only on them would not meet Spain’s stated requirement.

Thailand is said to require about £18,000 in a Thai bank account, plus monthly income above a State Pension. The presenter notes that the pension is frozen there and exchange rates can change.

The presenter warns that moving abroad permanently generally ends automatic NHS entitlement. Eligible UK State Pension recipients living in the EU, Norway, Iceland, Liechtenstein, or Switzerland may have healthcare covered through an S1 form.

For 2021, the UK reportedly spent about £537 million on healthcare for roughly 174,000 people with an S1 form—around £3,100 per person on average.

Outside the relevant European arrangements, retirees may need private insurance. The presenter says coverage in Thailand for someone aged over 75 can cost from a few thousand pounds to more than £10,000 a year, and may become a larger expense than rent.

Presenter’s ranking and practical framework

The presenter’s ranking considers cost, State Pension treatment, healthcare, and barriers to entry:

• Philippines: about 38% of UK costs, but marked “no” for healthcare in the presenter’s comparison.
• Bulgaria: about 54% of UK costs and the first destination in the chart marked “yes” across all categories.
• Portugal: about 73% of UK costs; described as the main low-cost option where the State Pension continues to rise and the entry requirement can be met by a State Pension.

The presenter says Thailand could still suit someone with a substantial private pension, even if the State Pension is frozen.

Suggested checks before choosing a destination:

1. Check the UK government’s list of countries where the State Pension continues to rise.
2. Check whether an S1 form would cover healthcare in that country.
3. Get the visa income requirement from the country’s consulate and compare it with guaranteed income.
4. Only then compare rents and living costs. The presenter suggests renting for six months before selling property in the UK.

The presenter also says the cheapest route to fill UK National Insurance gaps from abroad ended in April 2026, with a missing year now costing about £957. They recommend checking a State Pension forecast first, since a voluntary contribution may add little or nothing. Portugal also closed access to its former tax benefits for new residents in 2024.

Sponsorship and disclosures

The video includes a Wise-sponsored segment. Wise is described as using the mid-market exchange rate and showing fees upfront; the presenter repeats the company’s claim that transfers can save up to 75% compared with banks. The offer mentioned is a first transfer fee-free up to £500.

No explicit “not financial advice” disclaimer appears in the subtitles.

Assets and instruments mentioned

No stock tickers, securities, or investment funds are discussed. The financial topics are the UK State Pension, private pensions, National Insurance contributions, currency exchange, and international money transfers.

Presenter and sources

Presenter: Zac Assane

Sources cited: International Living; Numbeo (mid-2026 cost comparison); GOV.UK and DWP pension information; NHS and Department of Health healthcare information; Wise (sponsor).