This figure, which has left our country’s residents stunned, is based on data from NetCredit and Numbeo. The estimates reflect a retirement period of 14 years and 8.4 months, based on the average retirement age and life expectancy in the United States, and do not include taxes or healthcare costs.
By this measure, Moldova ranks 47th out of 95 countries surveyed.
For Americans considering retirement abroad, the amount of savings needed can vary significantly depending on the destination.
According to estimates from the sources mentioned above, the cost of retiring to live in the United States is $738,000, placing the country fifth on the list of the most expensive countries for an American to retire comfortably, after Singapore, Iceland, Switzerland, and Luxembourg.
Costa Rica is also a popular retirement destination for American retirees, combining a well-established healthcare system with a territorial tax system that generally does not tax income earned from foreign sources.
The estimated cost of retirement is $598,000 in Canada and just $356,000 in Mexico. This means that the comparable estimated cost of retirement in Mexico is less than half that in the United States.
The difference also applies to several popular European destinations. In Portugal and Spain, it is $478,000, which is approximately $260,000 less than in the U.S., while in Greece, about $406,000 is required.
Retirement savings vary widely across Europe
The cost of retirement savings in Europe ranges from $893,000 in Iceland to $267,000 in Belarus.
Many of the highest estimates are concentrated in Northern and Western Europe. Switzerland ($859,000), Luxembourg ($794,000), Ireland ($702,000), the United Kingdom ($627,000), and Denmark ($625,000) are among the most expensive countries in the dataset.
Further south and east, pension savings can be significantly higher. The estimated value drops to $395,000 in Montenegro, $388,000 in Albania, and $335,000 in Romania (even less than in Moldova).
Even within Western Europe, there are significant differences. A retirement in Portugal or Spain is estimated to cost about 35% less than in the United States.
The exact figure for Moldova
The average Social Security pension in the U.S. is about $2,000 per month (34,400 lei). To generate $2,000 per month ($24,000 per year) in passive income in the U.S., one would need to accumulate about $600,000 in personal savings (based on the “4% rule” for safe withdrawals).
In other words, an American’s pension would need to be approximately 19,000 lei to live comfortably in Moldova.
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