As the cost of retirement continues to rise, many are eyeing Mexico as a more affordable alternative. In Mexico, a couple can retire with housing costs ranging from $1,500 to $2,500 per month, a value far below than what many allocate for rent in numerous U.S. cities. Based on data from the 2025 Global Retirement Index and Numbeo, Mexico offers living costs that are 42% to 45% lower than those in the U.S. or Canada with an encouraging peso-dollar exchange rate.
While selection of a suitable city depends on individual desires including beach proximity, historical architecture, expat communities, or cultural exposure, six standout locations emerge. Mérida, Lake Chapala, Guanajuato, San Miguel, Puebla, and Oaxaca exhibit the furthest reach of the retirement dollar.
Mérida, once dubbed the safest major city in Mexico, registers an impressively low crime rate and affordable living with singles needing $726.80 per month before rent, and couples managing comfortably on $1,434 to $1,740 monthly.
Lake Chapala, host to the largest retirement community in Latin America, offers social activities in abundance and a mix of local and expat connections. Housing for couples ranges from $2,000 to $2,500 monthly, with favorable weather conditions throughout the year.
Guanajuato enthrals with colonial charm and costs much less than its counterpart, San Miguel. Singles need between $1,100 and $1,200 monthly while couples fare well on $1,500 to $1,770. The city is packed with cultural festivities and possesses robust infrastructure.
While a little more pricey than others, San Miguel remains 30% to 50% cheaper than comparable locales in the U.S. It boasts a UNESCO historic center and delivers world-class healthcare and dining.
Puebla provides modern amenities without the financial strain, with couples able to live on $1,586 monthly. Healthcare and pharmaceutical consultation costs are notably lower than in the U.S., and the city is advantageously located between mountains.
Lastly, Oaxaca calls those desiring an authentic exposure to Mexican culture with living costs for couples ranging from $2,000 to $2,500 monthly. The city is renowned for its indigenous culture and formidable cuisine.
The survey results from the 2025 Expat Insider Survey reveal the welcoming atmosphere experienced by expats in Mexico with high percentages feeling at home and pleased with their social lives. If considering relocating for retirement, a good start could be a temporary residency followed by an assessment of the chosen city over a year. Learning basic Spanish and studying local crime rates could also be beneficial.