Affordable Retirement in Mexico | Mexpro

Affordable Retirement in Mexico

Affordable Retirement in Mexico: What You Need To Know

Whether you're nearing retirement age or planning for the future, you've probably already heard that Mexico is one of the most popular retirement destinations in the world for Americans and Canadians. With benefits that include a dramatically lower cost of living, excellent healthcare and all the comforts of a modern city (but set in a tropical paradise), it's no wonder that an estimated 1.6 million Americans (and 80,000 Canadians) call Mexico home.

Retired couple hoolahooping on a Mexican beach

Here's the question that so many retirees are asking: Are these benefits exaggerated, or does a Mexican retirement really live up to these standards? What about affordability (in terms of cost of living and necessities)? And, will I really have the healthcare needed for a good quality of life?

How Affordable is Retirement in Mexico?

Currently the peso exchange rate is at an all time high, so there's no doubt you'll get more bang for you buck. You can purchase nearly 20 Mexican pesos per $1 U.S. Dollar and 15 per Canadian dollar.

The overall cost of living (excluding rent) is 66% lower in Mexico (August 2022). For Canadians, consumer prices are 157% higher in Canada compared to Mexico (August 2022).Overall cost of living prices will vary in different regions — for example, costs may be higher in popular resort areas.

If you're planning on purchasing a home, a quick search through Internet realtor listings will quickly convince you that home prices are drastically lower, even in more-expensive beach towns. According to Zillow, the median home price in Mexico is around $135,400 USD (as of August 2022).

For RV enthusiasts, Mexico offers affordable rates as well. For example, in some RV sites a full-hook-up spot can cost as little as $25 a night, while non-hook-up beach campsites are available for less than $10.

Below find a short list of average expenses in Mexico (August 2022).




Sports & Leisure

Monthly Living costs (which again will vary by region, August 2022):

Health Insurance/Medical Care

One of the most important questions you'll need to ask is whether or not you can get Medical insurance coverage in Mexico and/or if Medicare is accepted there. The bad news is Medicare is not accepted or reimbursed for procedures done in Mexico.

The good news is that the Mexican government offers affordable healthcare. There are two government-sponsored health insurance systems for citizens and resident expats:

You can also choose to purchase private insurance at a fraction of its cost in the U.S. But keep in mind that, even without insurance, medical procedures are significantly less expensive in Mexico compared to the U.S. Prescription drug prices are drastically cheaper, as well.

Concerned about the quality of medical services in Mexico? There's no need. "The Mexican government has stepped in to improve the quality of services, providing money to certify doctors and/or send them to U.S. learning institutions, and create state of the art hospitals that measure up to U.S. and Canadian standards." This was done primarily to promote Medical Tourism in Mexico.

Where is the Best Place to Retire in Mexico?

According to a variety of expat sources, here are a few popular destinations for expats and retirees.

More Expensive

San Miguel de Allende

Playa del Carmen

Ajijic, Jalisco (near Lake Chapala)

Nuevo Vallarta



Loreto, Baja Sur

Ensenada, Baja Norte



If you're looking for sandy beaches in Mexico's Riviera Maya — Cancún, Tulúm, Playa del Carmen and Cozumel — are popular. Likewise, two great favorites on the Pacific coast are Puerto Vallarta and Mérida. Be aware, however, that living in these tourist resort areas will cost more, though still significantly cheaper than life in most U.S. cities.

In the Baja region, more-affordable cities such as Loreto and Ensenada are also extremely popular with expats — because of their easy accessibility for quick travel to the U.S. (with no Temporary Importation permit requirements).

Inland, San Miguel Allende is popular among art enthusiasts. A designated a UNESCO World Heritage Site, there is no shortage of activities and culture, and the temperatures year-round are moderate. Lake Chapala is Mexico's largest fresh water lake, and popular among expats, with a moderate climate.

Mexico warmly welcomes the American expat community. As a result, you can live in comfort and peace of mind in these (as well as many other) communities.

Pros and Cons


  • Significantly Lower Cost of Living
  • Excellent Healthcare
  • Low Cost Prescription/OTC Drugs
  • American Products Available
  • Many Mexicans speak English
  • Easily Access to the U.S.
  • Good Climate
  • Ancient Ruins, Culture, Nature
  • Entertainment, Festivals, Events


  • Life is Slower, Things Take More Time
  • Some Services/Ammenities Not Readily Available
  • Hospitals Sometimes Require Payment in Advance

Life is Good written in the sand on a Mexican beachFor retirees, Mexico arguably offers more for your money than just about any other popular retirement destination in the world.

On the practical side, it provides a drastically lower cost of living for comparable housing and amenities; and on the cultural/social side it offers exciting adventures in music, art, entertainment, shopping and cuisine.

For outdoor enthusiasts, Mexico is home to exquisite natural landmarks, lush forests and breathtaking mountain ranges, not to mention a tropical climate with enough diversity for all tastes. And when it comes to quality of life, Mexico provides good healthcare at a surprisingly affordable cost. If you're on the fence about retiring in Mexico, now's the time to crawl over on the right side.