Retiree couple finds financial peace in Portugal

Jordan Rosenfeld reports that Kyle M., a 54-year-old retired in-house counsel for a technology company, and his wife have bought a home in Portugal and are applying for permanent residency. They chose Portugal for its beauty and affordable cost of living, especially for healthcare and food. “It is shockingly difficult to come back to the U.S. pricewise,” Kyle said. “It’s staggering how expensive things are here.” Kyle and his wife have budgeted $181,000 for expenses in 2025, including travel to and from the U.S. and costs for their young adult daughters. Healthcare costs have significantly decreased for them in Portugal. In the U.S., they budgeted around $4,000 a month for a family of four, including $2,800 for health insurance and copays and deductibles. On Portugal’s public health system, the cost is around $3,250 Euros (approximately $3,347 USD) for Kyle and his wife for the year, plus an additional $1,000 per month for one of their daughters. This is a shift from around $50,000 per year to about $15,000 per year.

retirees save big on living costs

They purchased their home in Portugal by selling a property in the U.S. but still have mortgage payments they mostly break even on with two income-generating rental properties. Property taxes in Portugal are significantly lower. As retirees, they no longer have commuting costs. Their monthly budget for gas and transportation has gone down from about $300 per month, or $3,600 per year, to around $600 per year. Kyle budgets $800 a month for groceries and $750 a month for dining out, which is significantly cheaper in Portugal. They budget $1,500 a month for travel and another $750 per month for entertainment and recreation. Electricity and other utilities are also significantly cheaper in Portugal, coming to about $100 per month total. Homeowner’s insurance is around $500 for the year. Their budget may change when they become Medicare eligible in about 10 years and begin drawing on Social Security, but they will rebalance their budget when the time comes.