How to Retire in Mexico

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. To do so, it’s typically necessary to obtain 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 $1,600 a month, or $18,000 a year, according to Numbeo. ¹ These figures include the cost of a one-bedroom apartment in city center, plus other typical monthly costs like groceries and utilities.

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. 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. 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 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, this is 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 $3,737.95, demonstrated over the past six months, or
• Savings or investments of at least $62,232.50, 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. With this, it’s not necessary 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 though, and they must be maintained over specific timeframes. For example, the Mexican Consulate in Houston has the following financial solvency requirements:

• Monthly income of approximately $7,322, demonstrated over the past six months, or
• Savings or investments of at least $292,859, 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. A three-bedroom in a city center would only set you back only around $1,464.45 a month, per Numbeo. If you’re looking for something more permanent, you can buy an apartment in a city center for around $257 per square foot. You’ll still have to pay utilities, which typically add up to around $72, according to Numbeo (this total accounts for electricity, heating, cooling, water and garbage).

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. That way, you won’t have to worry 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 August 2025, 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 traveling there.

The level of warning is higher in some states of the country, however. For the states of 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.

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. There are even 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 among those ages 55-64 is around $185,000, per the Federal Reserve. ² Meanwhile, retired workers averaged a monthly Social Security benefit of around $2,071 in January 2026. With a typically lower cost of retirement in Mexico, many Americans can retire comfortably by meeting these averages.

This is why knowing the type of retirement lifestyle you want is the first step toward saving. 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 is also helpful 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.

How an Advisor Can Help You Create a Plan to Retire in Mexico

Retiring in Mexico is an increasingly popular choice for Americans drawn to the lower cost of living, warm climate and proximity to the United States. But making the move successfully requires more than booking a flight and finding an apartment. A financial advisor with international retirement experience can help you build a comprehensive plan that accounts for the unique financial, legal and tax considerations that come with living abroad.

One of the most important areas an advisor can add value is tax planning. As a U.S. citizen, you must file federal taxes regardless of where you live, meaning your retirement income remains subject to U.S. tax law even after you leave the country. At the same time, Mexico has its own tax rules that may apply to income you earn or receive there. A qualified advisor can help you navigate both systems, identify any applicable tax treaties and structure your withdrawals in a way that minimizes your overall tax burden.

An advisor can also help you think through how to fund your retirement abroad. Decisions around when to claim Social Security, how to draw down your 401(k) or IRA and whether to keep financial accounts in the U.S. or open accounts in Mexico all carry meaningful consequences. Currency exchange rates add another layer of complexity, since a shift in the peso-to-dollar rate can affect your purchasing power in ways that are easy to underestimate.

Healthcare is another critical piece of the puzzle. Medicare does not cover care received outside the United States, so you will need a separate strategy for medical expenses. A financial advisor can help you evaluate private international health insurance options, estimate out-of-pocket costs and factor healthcare into your overall retirement budget.

Understanding the legal requirements for living in Mexico long-term is equally important. Residency visas, property ownership rules for foreigners and estate planning considerations that span two countries are all areas where the wrong assumption can lead to costly surprises. An advisor who has helped clients retire abroad can guide you through these complexities and help ensure your plan holds up on both sides of the border.

Bottom Line

If you want to retire somewhere 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 want more, 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 have enough saved to make your dream retirement a reality. Finding a qualified financial advisor doesn’t have to be hard, either. SmartAsset’s free tool matches you with vetted financial advisors who serve your area. From there, you can have a free introductory call with your advisor matches to decide who 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.

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