Many people look to move abroad for work or in retirement because they feel the pull of a more easygoing way of life. They want something less hectic than life in the U.S.
Alongside this, moving to another country also offers the opportunity to enjoy a lower cost of living and see your dollars stretch further. This has often been the attraction of a move to Central America, but it may be more myth than anything else.
Gary Keenan’s Story
Gary Keenan is a New Mexico native, Albuquerque born and raised, who practiced law for a decade before taking over his father’s insurance business.
He ran this insurance business for another 25 years or so before deciding in 2014 that it was the right moment to stop working and enjoy a well-earned retirement.
Keenan’s Retirement Plan
He sold the insurance business while also filing for divorce and in 2015 was ready to start his retirement.
Tired of living in the same city his whole life, he wanted to retire abroad and enjoy an easygoing way of life. He considered a move to Europe but eventually packed up his life and moved from New Mexico to Costa Rica.
Why Costa Rica?
Keenan’s love affair with Costa Rica began while he was still working with the family insurance company.
A business retreat to Playa Zancudo in southern Costa Rica, followed a few years later by a wedding in Playa Grande in the country’s northeast Guanacaste region was enough for Keenan to fall in love with the nation’s accessible beaches and easygoing way of life.
Prices Initially Cheaper, Slightly
Stories of a lower cost of living and a far more comfortable financial situation for retirees also probably helped steer Keenan’s plans toward a move to Costa Rica.
When he first moved to the country in 2015, Keenan did indeed note that prices were cheaper than in the States, but not by much. However, prices skyrocketed when inflation hit in 2022.
Food Costs
The higher-than-expected cost of living was perhaps most noticeable in food prices. Keenan says that the cheapest cut of beef from his local grocery store is around $5.50 a pound.
Steaks in particular, many of which are imported from Argentina, are especially pricy at about $17 a pound. Packaged goods, along with imported fruits and vegetables, are also higher than in the U.S.
Auto Expenses
In 2023, Keenan had a nice direct comparison between prices in Costa Rica and prices back home when he bought a car.
He purchased a car in Costa Rica for approximately $34,000. Checking the car in the Kelley Blue Book, he saw the same vehicle valued at between $16,000 and $18,000 in the U.S.
Property Prices
He’s never purchased a house in Costa Rica as the process can take years, but Keenan has already experienced how rents have gone up in recent years.
His first condo cost $1,000 per month, and his current condo is $1,500 a month, an excellent deal he says he was only able to get because he knew the landlord.
Reasons for the Price Increase
Rents are comparable to the U.S. or slightly cheaper still, but Keenan says prices have jumped 50% to 100% in some areas, particularly touristy areas, post-pandemic as expats invest more in real estate.
Costa Rica has also imposed import duties on U.S. items, driving an increase in the cost of living. The dollar is also weaker than it has been in the past. The U.S. dollar has fallen by around 25% against the Costa Rican colón since peaking in the summer of 2022.
‘Horribly Inaccurate’ Reports
As he faced buying a car that cost twice what it would have in the U.S., rising rents and groceries that are often 1.5 times the price of comparable goods in U.S. grocery stores, Keenan struggled with the narrative that living abroad is cheaper.
“I have read several articles in the last four months that actually said these are the countries to live in for less than in the U.S. That is horribly incorrect,” Keenan said.
Others Reporting High Costs of Living Abroad
Business Insider has run a number of pieces on Americans who opted to move to Latin America for work or a cheaper retirement.
While some say they now live more comfortably having been priced out of the U.S., others seem to be in the same boat as Keenan — life may be more peaceful overseas, but expenses are as high if not higher than back home.
Prices Catching Up Globally
It’s an idyllic aspiration for many — enjoy your retirement somewhere quiet with sand and sea and an easy way of life where your hard-earned dollars stretch further and grant you a higher quality of life in your autumn years.
But the reality is, money just doesn’t go as far as it once did. A rising cost of living is a global crisis, and the dollar simply isn’t as strong as it has been in the past. Retirees like Keenan can still enjoy a slower pace of life, but they’re quite literally paying for it.
