How to Retire in Mexico: Visas, Cost of Living and More

Retiring in Mexico can be an appealing option for those looking for a lower cost of living, warm weather, and access to high-quality healthcare. The qualifications to retire in Mexico typically involve obtaining a temporary or permanent resident visa, which requires proof of financial stability through monthly income or savings. Many retirees opt for the permanent resident visa, which does not require renewals and offers more long-term benefits.

Making the move to retire in a foreign country requires lots of planning before hand. A financial advisor can help with that today.

Average Cost to Retire in Mexico

A retired couple can expect to retire comfortably in Mexico with an average income of about $2,500 a month, or $30,000 a year, according to InternationalLiving.com. These figures include the cost of a house, a maid service, utilities, groceries, entertainment, health insurance and more.

A few factors play into your cost of living for retirement in Mexico. The biggest is location: Mexico is a large country with big cities, small towns, resort areas and everything in between, and your exact costs will largely depend on where you live. It also depends on the lifestyle you plan to lead. Whether you want to retire early, late or on time will also affect your expenses timeline. You will also want to keep an eye on the exchange rates from USD into pesos. Not everything in Mexico is marked as pesos, with many merchants accepting USD, especially in tourist areas. Plus, shopping and living like a local, like buying from street vendors, can save you even more money.

Visas for Retiring in Mexico

Retiring in Mexico requires either a Temporary Resident Visa (Residente Temporal) or a Permanent Resident Visa (Residente Permanente), both of which have specific financial requirements that vary by consulate. In addition to meeting income or asset thresholds, applicants must provide consistent proof of financial solvency over a specified period, typically the last six months for income or the last twelve months for savings or investments.

Temporary Resident Visa (Residente Temporal)

The Temporary Resident Visa allows foreigners to stay in Mexico for more than 180 days but less than four years. Many retirees use this visa as an entry point before transitioning to permanent residency. To qualify, applicants must meet financial requirements. For example, the Mexican Consulate in Houston has the following financial solvency requirements:

Monthly income of at around $4,400, demonstrated over the past six months, or
Savings or investments of at least $73,235, maintained for at least 12 months.

Because Mexico’s daily minimum wage is adjusted annually, the exact financial thresholds can fluctuate. Some consulates may set stricter requirements, so it’s advisable to check with the specific consulate where you plan to apply. After maintaining temporary residency for four consecutive years, retirees can apply for Permanent Residency without needing to meet additional financial requirements.

Permanent Resident Visa (Residente Permanente)

The Permanent Resident Visa is ideal for retirees seeking to live in Mexico permanently without renewals. This visa also provides greater flexibility, such as the ability to work, if desired. The financial requirements are higher than for temporary residency and must be maintained over specific timeframes. For example, the Mexican Consulate in Houston has the following financial solvency requirements:

Monthly income of approximately $7,324, demonstrated over the past six months, or
Savings or investments of at least $292,941, maintained for at least twelve months.

Again, eligibility can vary widely, so it’s important to check with the consulate handling your application.

Housing in Mexico

Luckily for Americans who want to retire in Mexico, the U.S. dollar’s strength against the peso allows for some great real estate deals. If you want to rent in retirement in a city center, you can expect to find apartments for just under $600 per month, according to Numbeo. A three-bedroom in a city center would only set you back only around $1,150 a month. If you’re looking for something more permanent, you can buy a home in a city center for around $176 per square foot. You’ll still have to pay utilities, which typically add up to around $107, according to Numbeo (this total comprises traditional utilities, a cell phone plan and internet access).

When you buy a home in Mexico, you can do so with a “direct deed,” in a local corporation or via a fideicomiso (bank trust). These options provide safe and trustworthy ways to buy a home and have access to homeownership rights. Plus, many Mexican real estate markets employ English-speaking agents to help you throughout the process without worrying about a language barrier.

Safety in Mexico

While most popular areas of Mexico are safe, violent crime is a widespread issue in many Mexican states. In September 2024, the U.S. State Department issued a level 2 travel advisory to travelers looking to go to Mexico. This means travelers should “exercise increased caution” when travelling there.

The level of warning is higher in some states of the country, however. For states Colima, Guerrero, Michoacán, Sinaloa, Tamaulipas and Zacatecas, the State Department warns against travel due to high crime levels. If you’re looking for safer states, consider Campeche or Yucatan.

Healthcare in Mexico

Healthcare may not be the first thing on your mind when you’re planning to move to a new country. However, healthcare and the associated costs are an important factor to consider as you grow older. Once you move countries, your healthcare plan won’t follow you. Luckily, residents of Mexico will have access to both medical insurance plans and solid medical facilities.

In 2018, a research paper in The Lancet found that healthcare quality and access grew significantly in Mexico from 1990 to 2016. Mexico’s Healthcare Access and Quality (HAQ) index rating rose from 45.5 to 66.3 over that period. The median HAQ value for all countries in 2016 was 63, and the rating for the U.S. was 88.7. Mexico has also seen a steep drop in infant mortality, heart disease and stroke in recent years, according to the Organisation for Economic Cooperation and Development.

It is important to know ahead of time that most Mexican medical facilities are private institutions. You can find health insurance plans from both local and international providers. You can even find some banks that offer medical plans. Keep in mind that it becomes more difficult to obtain health insurance after you turn 65, just like in the U.S.

Do You Have Enough Saved to Retire in Mexico?

In the U.S., the median retirement account balance is around $87,000, according to the Federal Reserve. Meanwhile, retired workers averaged a monthly Social Security benefit of around $1,975 in December 2024. With an average cost to retire in Mexico of $30,000 a year, many Americans can retire comfortably by meeting the average retirement savings numbers.

This is why knowing the kind of lifestyle you want to live in retirement is the first step toward saving for retirement. It helps you determine how much and how aggressively you need to save. You’ll need to save even more if you want to retire early.

Retirees in Mexico who are 60 or older and have a resident visa can also take advantage of Mexico’s retirement benefits program, Personas Adultas Mayores. This offers savings for healthcare, transportation, hotels and even museums. Don’t forget that you can also save easily by shopping at local markets and buying fresh.

It will also help to be aware of the costs of international money transfers and currency exchange. If you find yourself constantly transferring money to and from the U.S. and exchanging USD to pesos (or vice versa), that can take a dent out of your precious retirement savings. In these cases, you’ll want to open a Mexican bank account and find ways to transfer money internationally for free.

Bottom Line

If you want to retire in a place with a low cost of living and warm weather, Mexico is an excellent option. Just remember that your exact costs will depend on how you want to live in retirement. If you’re willing to live like a local and cut some of your luxuries, you won’t need to have an exorbitant amount of money saved. But if you just can’t live without constant air conditioning or a five-bedroom house, you should be prepared to pay a little more than the amounts you see here.

Making Your Retirement Dreams a Reality

A financial advisor can help ensure that you’ve got enough saved to make your dream retirement a reality. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
A great way to start your retirement savings is by taking advantage of your employer-sponsored 401(k) plan. At the very least, max out any matching your employer offers, and consider going up to the maximum contribution limit. This also lessens your taxable income, offering a nice tax break each year you contribute.