#2 - Living on Social Security

¡Hola!

It's good to see you back on Day 2 of our series!; Retiring in Colombia Like a Millionaire.

My amigos, Craig and I want you to have peace of mind as you make the decision to retire in my beautiful country, Colombia. Although it can be totally overwhelming compiling and analyzing everything, having your finances well planned out will go a long way in giving you peace of mind. And to help you with this you are going to learn today about the cost of living in Colombia. In this section we have also put together a guide with the costs you should consider before moving here.

Colombia stands out in terms of affordability when you take a look at the statistics because it is ranked as one of the most budget-friendly countries in the world, and amazingly the average monthly cost of rent in the US will cover a whole month of expenses in most parts of the country (1) (2). My country’s cost of living is also surprisingly low considering the quality of its infrastructure and you can expect to have the conveniences of modern life such as running water, electricity, internet, etc; just remember that water and electrical outages tend to be more frequent when compared to the United States (3).

Now let’s talk about inflation and our national currency since I know that you have been experiencing inflation recently in the United States. Likewise I have lived through times of high inflation and it has historically been an issue in Colombia, as with most Latin American currencies. Currently it is on the high side at an annual rate of 6.2% (4). In Colombia our national currency is the Colombian Peso (COP), with an approximate exchange rate at the time of writing this of 1 USD = 4,000 COP, and you can check current exchange rates at this website: xe.com. Though we do have issues with inflation, this is usually linked to increases in the value of the US dollar (USD), and you will be able to avoid inflation's worst effects as long as your income is in dollars (5).

For now, I think I have talked enough about figures and statistics. Though there are issues in the country, just imagine living in a beautiful country full of nature. A land where you can live comfortably on your retirement income, and forget the stress of balancing a strict monthly budget; this is my Colombia.

Amigos, check out my husband’s video in which he breaks down monthly living expenses in Colombia’s Eje Cafetero.

¡Chao!