Cheapest Places to Retire in Mexico

Moving to Mexico for retirement is becoming an increasingly popular choice for many, particularly those seeking an adventure that comes with a lower cost of living and a higher quality of life. Some of the cheapest places to retire in Mexico include Mérida, Lake Chapala, San Miguel de Allende, and Mazatlán. The allure of Mexico isn’t just its stunning landscapes and rich culture–it’s also a good place to retire due to its affordability, climate, and proximity to the US and Canada.

A Glimpse into the Past

Retirement in Mexico has a history that spans decades, with Americans and Canadians transitioning their life to the beautiful sunbaked country as early as the 1950s. Initially, expats were drawn to the country’s major tourist destinations, but over time, the trend shifted towards smaller towns and cities, where they can enjoy a lower cost of living. This historical shift has paved the way for today’s retirees looking for peace of mind in a new landscape.

Cheaper Costs Mean a Richer Life

Living in Mexico can significantly reduce your expenses without compromising on quality of life. One of the most notable differences between Mexico and its neighbors to the north is the cost of everyday expenses like groceries, utilities, and dining out. In Mexico, these costs are a fraction of what one would spend back home.

Housing is another area where savings are evident. Whether you’re renting a beachfront condo or purchasing a colonial home in a historic city, it’s possible to find affordable property in Mexico. This means you can enjoy a comfortable, even luxurious lifestyle for less than you might expect.

Valladolid, Yucatan - one of Mexico's best places to live
The state of Yucatan has 2 of our favorite cities to live in where the cost of living is low.

Healthcare also leads to significant savings without sacrificing quality of life. Mexico’s healthcare system is renowned for its high standards, and many of its healthcare professionals are trained internationally. Additionally, the value of the Mexican peso against the US dollar or Canadian dollar can help you stretch your retirement savings. 

This combination of lower living costs, affordable healthcare, and a favorable exchange rate means that your retirement income goes much further in Mexico, enabling a lifestyle that might be out of reach in the United States or Canada.

Affordable Gems for a Golden Retirement

Today, Mexico offers a plethora of destinations that combine affordability with quality living. Each of these places provides a unique blend of cultural richness, natural beauty, and community.


Merida- cheapest places to retire in Mexico

The cultural heart of the Yucatán Peninsula, Mérida is renowned for its colonial architecture, vibrant local markets, and welcoming atmosphere. The cost of living here is low and healthcare is top-notch, making it an attractive option for retirees.

Lake Chapala

Home to a large expat community, Lake Chapala strikes a perfect balance between scenic beauty and practical living. With a variety of social clubs and activities tailored to English-speaking retirees, it’s easy for newcomers to feel at home.

San Miguel de Allende

Though slightly pricier than other options, San Miguel de Allende is still more affordable than many places in the US and Canada, and it offers an unparalleled artistic and cultural scene. The city’s historic center, a UNESCO World Heritage site, is a magnet for those who appreciate art, history, and a vibrant community.


This coastal city combines the charm of historic Mexico with natural beauty. It’s not only affordable but also rich in preserved history, making it an ideal location for those who love the ocean and outdoor adventures.

Quality of Life in Mexico

If you’re considering retirement in Mexico, it’s important to look beyond the cost of living. The quality of life there is impacted by several factors, such as:


Though the healthcare in Mexico affects the cost of living, it needs to be noted that it also improves quality of life. Being able to rest easy knowing you can afford any surprise medical costs is priceless.

Community and Culture

Integrating into a local community and embracing Mexican culture can enrich the retirement experience. Mexico’s welcoming atmosphere, along with a rich history of expat communities, can make it easier to settle in and build a new life.


With Mexico’s proximity to the US and Canada, it’s easier to visit family and friends, making it an attractive retirement destination for those who wish to maintain close ties to their home country.

Where Sunset Meets Savings

It’s clear that Mexico offers an unmatched blend of affordability, culture, and quality of life. For those looking to retire, Mexico isn’t just a place to save money–it’s a destination to enrich your life in ways you might not have imagined.

Looking for an affordable place to retire shouldn’t be about living for less; it should be about living well. Mexico can offer you both!

If you’re ready to move to Mexico, do it the right way. Check out our complete Mexico Relocation Guide. An easy to follow online guide that gives you the steps for moving to Mexico. And because we know Mexican bureaucracy is hard to navigate, we also give you our directory of recommended experts across Mexico.

Mariana Lange

Mariana Lima-Lange was born in Mexico and immigrated to the U.S. when she was a child. She spent every summer visiting family throughout Mexico and is very knowledgeable about Mexican culture, lifestyle, and traditions. She is fluent in both Spanish and English.

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