South Africa is the cheapest country in the world to live and retire
22 February 2016
South Africa has been ranked the cheapest country in the world to live and retire in, according to a 2016 report which compares dollar strength to a number of global currencies.
GoBankingRates generated the rankings based on cost of living indices sourced from online pricing database Numbeo: Cost of Living. This study surveyed cost indicators for major cities in the 112 nations for which Numbeo had recent and accurate data, using the median cost indicators of the cities to generate a typical cost index for the country.
The four key affordability metrics are:
Local purchasing power index: Measures the relative purchasing power of a typical salary in that country, compared to New York City. A lower purchasing power buys fewer goods, while a higher purchasing power buys more
Rent index: Compares typical rental prices in the country to New York City
Groceries index: Compares typical grocery prices in the country to New York City
Consumer price index: Compares costs of local goods and services — including restaurants, groceries, transportation and utilities — to New York City
When South Africa's prices and cost of living is compared to those in New York, the study found:
Local purchasing power is 26.9% higher
Rent is 87.5% cheaper
Groceries are 71% cheaper
Local goods and services are 65.8% cheaper
The second cheapest country, India has a local purchasing power of 20.9% lower than New York, while rent is 95.2% cheaper, groceries are 74.4% cheaper, and local goods and services are 74.9% cheaper.
The most expensive country, on the other hand, is Bermuda.
According to the report the top 10 cheapest countries to live and retire are: