How Much Savings You Need to Comfortably Retire in Portugal

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The cost of living is soaring in the U.S., making it tougher than ever for retirees living on a fixed income to get by. Fortunately, ours is a vast world, made up of 195 countries.

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If you’ve done any research into other countries that may give you access to a better life on a frugal budget in your golden years, you’ve probably heard lots about Portugal — an increasingly popular pick by expat retirees.

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How Portugal Became a Retirement Haven for Americans

According to a 2023 census reported by The Instituto Nacional de Estatistica, the number of foreigners living in Portugal has increased by 37% since 2011, as reported by Condé Nast Traveler.

Additionally, according to Serviço de Estrangeiros e Fronteiras (SEF), Portugal’s immigration and border service, the number of Americans moving to Portugal in the prior three years nearly doubled. Of the more than 700,000 estimated foreigners living in Portugal, roughly 7,000 are American citizens.

A percentage of those American citizens are retirees looking for a nicer, or at least, different life than they get in the U.S. on a fixed income. Portugal stands out as an ideal retirement haven for a number of reasons: The cost of living there, according to Numbeo, is 34.9% lower than in the U.S.; an aging local population; wonderful weather and relatively low crime . Research published in 2022 by U.S. News & World Report determined Portugal as the second best country for a comfortable retirement. (Note: Switzerland came in first place, but the cost of living is generally much higher there than in the U.S.)

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Breaking Down the Costs of Living in Portugal

You can’t know how much you need to save without knowing how much you need to spend. So, let’s break down the cost of living in Portugal. This will help you determine if relocating there in retirement is a smart financial move.

Here’s a breakdown of all aspects of cost of living in Portugal compared to the U.S:

• Estimated monthly costs for a family of four, without rent: $2,581.8 (€2,361.4), according to Numbeo

• Estimated monthly costs for a single person, without rent: are $732.3 (€669.8), according to Numbeo

• Monthly rent in Portugal: 43.8% lower than in the U.S., which $1,535, on average, according to Apartments.com]

• Monthly utilities: Around €110 or $119, according to Housing Anywhere

• Monthly groceries: Around €200 or $218, according to Housing Anywhere   

• Monthly transportation: Around €40 or $44, according to Housing Anywhere   

• Monthly cost of leisure and entertainment: Around €150 or $164, according to Housing Anywhere.

So, if you’re retiring with your spouse, you can expect to spend $1499 a month on costs, without rent. Factor in rent (€1,320 or $1439 for a 3-bedroom apartment, according to Housing Anywhere), and you’re looking at around $3k per couple in monthly earnings needed. And the other essentials in and you’re basically looking at $3,600 to be safe.

For some extra perspective, the average Social Security check amount per recipient in 2024 is $1,907. If both you and your spouse are retired, you’re bringing in an average of $3,814 a month.

Determining the Number of How Much You Need Saved

But how much should you have saved before taking the plunge and applying for a retirement visa to live out the rest of your days in Portugal?

You’ll want to not only have money for Visa fees — between €50 ($54.50) to €300 ($327) per applicant — but also for the costs of moving (an international move costs between $4,200 to $7,000, according to International Van Lines). And then you may want to plan for a couple trips back and forth to settle on where you will live. That alone can set you back at least a couple grand. And don’t forget your emergency fund! You mustn’t let your normal savings routine come unhinged.

So, while the total amount of money you’ll need saved to comfortably retire in Portugal depends, it’s wise to go in with at least three to six months worth of savings in an emergency fund, and then, separately at least $10k in your “Retire in Portugal” fund to cover your upfront visiting and moving costs.

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This article originally appeared on GOBankingRates.com: How Much Savings You Need to Comfortably Retire in Portugal