Does it still make sense to retire in Buenos Aires on fixed income?

[Surfer]

First of all, great forum so thank you everyone for sharing information.

I went to Buenos Aires, Bariloche, Iguazu and Mendoza many years ago and it is a beautiful country. I am planning on retiring this year and had Buenos Aires on a short list. I speak Spanish conversationally which will help and ideally I move to a Spanish speaking country. I enjoy the beaches of Brazil but Portuguese is too difficult for me. Also, the cost of living and safety of Rio is above what I can comfortably afford.

Argentina made sense as I was planning last year but does it still make sense in light of the inflation? There has always been inflation but typically the blue dollar more than made up for it. I have been getting healthcare insurance quotes and it keeps changing drastically from one month to another. Is this normal? I checked a few years ago and prices were stable but now they are jumping up month after month and worse yet, in USD terms it is far more expensive.

It finally looks like there are more options for long term rentals. Last year I was shocked there were almost no properties available. It looks like restaurants are more expensive too. I read a post about $100 USD steaks at Don Julios now!! All this is a bit scary and shocking the price inflation on things. I want to have a healthcare plan in place but it is difficult to budget when healthcare is rising 200% in a short amount of time. Do you all think this will keep going up?

Does retiring in Buenos Aires still make sense on a fixed income? How do you all budget and plan when there is this type of inflation. The blue dollar seems like it is going down as well.

 

[Betsy Ross]

I always advise when people are thinking about retiring somewhere to retire to somewhere that you actually enjoy living in. There are plenty of cheap places around the world but some are awful for quality of living. So my #1 rule is finding a place that you enjoy living in.

Buenos Aires checked all my boxes and I don't regret my decision to retire here. I retired here many years ago and it is a fine city to be retired in. But it does fluctuate on cost of living. It is getting more expensive as you noted, especially healthcare costs. I have never seen it jump up as much as it has the past several months in USD terms. It is 200% more in the past 8 months. And there does not seem to be any slowdown. They will raise it again next month.

Utility rates are set to go up this year as well. Fortunately I purchased an apartment many years ago and my monthly condo expenses are reasonable. I hope it stays that way but you have to be prepared that the cost of everything will go up.

Make a detailed budget and see what you would realistically spend here.

 

[HannibalLector]

You can still get a kilo of delicious steak at my local Jumbo for like $6 USD so who cares about Don Julio. If you are basing your decision of where to retire on that you are in for a world of suffering

 

[Wally]

I always advise when people are thinking about retiring somewhere to retire to somewhere that you actually enjoy living in. There are plenty of cheap places around the world but some are awful for quality of living. So my #1 rule is finding a place that you enjoy living in.

Buenos Aires checked all my boxes and I don't regret my decision to retire here. I retired here many years ago and it is a fine city to be retired in. But it does fluctuate on cost of living. It is getting more expensive as you noted, especially healthcare costs. I have never seen it jump up as much as it has the past several months in USD terms. It is 200% more in the past 8 months. And there does not seem to be any slowdown. They will raise it again next month.

Utility rates are set to go up this year as well. Fortunately I purchased an apartment many years ago and my monthly condo expenses are reasonable. I hope it stays that way but you have to be prepared that the cost of everything will go up.

Make a detailed budget and see what you would realistically spend here.

Great advice. You should retire in a place you actually enjoy being in. I know buddies that are in God awful places just because it is very cheap. I think you have to balance things out and prioritize what is the most important things to you.

You can still get a kilo of delicious steak at my local Jumbo for like $6 USD so who cares about Don Julio. If you are basing your decision of where to retire on that you are in for a world of suffering

Agreed. I rarely dine out anymore. I can't imagine spending $100 bucks on a steak anywhere in the world let alone BA.

 

[Surfer]

I always advise when people are thinking about retiring somewhere to retire to somewhere that you actually enjoy living in. There are plenty of cheap places around the world but some are awful for quality of living. So my #1 rule is finding a place that you enjoy living in.

Buenos Aires checked all my boxes and I don't regret my decision to retire here. I retired here many years ago and it is a fine city to be retired in. But it does fluctuate on cost of living. It is getting more expensive as you noted, especially healthcare costs. I have never seen it jump up as much as it has the past several months in USD terms. It is 200% more in the past 8 months. And there does not seem to be any slowdown. They will raise it again next month.

Utility rates are set to go up this year as well. Fortunately I purchased an apartment many years ago and my monthly condo expenses are reasonable. I hope it stays that way but you have to be prepared that the cost of everything will go up.

Make a detailed budget and see what you would realistically spend here.

Great advice. Thanks. I do agree with you and thank is why I am considering BA vs. cheaper places like Peru or Ecuador or Colombia. I don't enjoy those places even though they are cheaper. Quality of life there doesn't seem as high and a lack of cultural events.

You can still get a kilo of delicious steak at my local Jumbo for like $6 USD so who cares about Don Julio. If you are basing your decision of where to retire on that you are in for a world of suffering

Point taken. But I mentioned that more because of the cost inflation in just a few years. I did not necessarily mean I would be dining out at Don Julios on a regular basis. The point more was do you worry about prices spiraling out of control?

 

[HannibalLector]

Where are you planning to surf around Buenos Aires

 

[Vero]

Great advice. Thanks. I do agree with you and thank is why I am considering BA vs. cheaper places like Peru or Ecuador or Colombia. I don't enjoy those places even though they are cheaper. Quality of life there doesn't seem as high and a lack of cultural events.


Point taken. But I mentioned that more because of the cost inflation in just a few years. I did not necessarily mean I would be dining out at Don Julios on a regular basis. The point more was do you worry about prices spiraling out of control?

I do worry about prices. Nothing I can really do about it but I do worry as I am on a fixed income. I won't lie. The inflation in my medical coverage has been painful and I don't know when it will end. I can't afford for it to keep going up at these rates. Utility rates are low. But I worry about that as well if they spike up.

 

[HannibalLector]

I do worry about prices. Nothing I can really do about it but I do worry as I am on a fixed income. I won't lie. The inflation in my medical coverage has been painful and I don't know when it will end. I can't afford for it to keep going up at these rates. Utility rates are low. But I worry about that as well if they spike up.

Cost of all kinds of insurance is exploding everywhere unfortunately

 

[Surfer]

Where are you planning to surf around Buenos Aires

There is no surfing around Buenos Aires. I mostly surf in Brazil. Rio (Arpoador, Geriba, Barra da Tijuca), Praia Joaquina in Florianopolis.

That is another benefit is it is a fairly quick flight. I hurt my back so I am not surfing as much these days. It is not a priority. But I do plan to visit Brazil but I got mugged the last time I was in Rio so that was a huge turn off.

 

[HannibalLector]

There is no surfing around Buenos Aires. I mostly surf in Brazil. Rio (Arpoador, Geriba, Barra da Tijuca), Praia Joaquina in Florianopolis.

That is another benefit is it is a fairly quick flight. I hurt my back so I am not surfing as much these days. It is not a priority. But I do plan to visit Brazil but I got mugged the last time I was in Rio so that was a huge turn off.

If it makes you feel better I've been mugged in Buenos Aires too it happens everywhere just gotta try and live and learn

 

[import export]

Cost of all kinds of insurance is exploding everywhere unfortunately

Ain't this the truth. And many places they stopped issuing insurance or you have to sell your soul to get it. Brother lives in Florida and he can't get insurance for his house. Sister lives in California and many of the insurance companies stopped issuing policies for fire risk. She said home owners has skyrocketed.

Think about other areas in Argentina. Many nice cities are a fraction of the cost of what it lives to live in Palermo or Recoleta where many expats end up.

 

[MikeYoung]

The way I look at it is I can work from anywhere in the world where there is internet. I do content marketing for my company in the USA. They don't care where I am based. They tried to get me to come back into the office and then I quit and then they told me I could stay at home. I am as productive in BA as I am in Chicago.

Even if the cost of living increases, it is still a fraction of what it is in the USA. And the quality of life is much higher for me in BA vs. Chicago which is a sanctuary city and full of immigrants now. No thanks.

I have a nice Airbnb, dine out fairly regularly and made some nice local friends and girlfriend. I couldn't live like this in the USA.

 

[Mitch]

The way I look at it is I can work from anywhere in the world where there is internet. I do content marketing for my company in the USA. They don't care where I am based. They tried to get me to come back into the office and then I quit and then they told me I could stay at home. I am as productive in BA as I am in Chicago.

Even if the cost of living increases, it is still a fraction of what it is in the USA. And the quality of life is much higher for me in BA vs. Chicago which is a sanctuary city and full of immigrants now. No thanks.

I have a nice Airbnb, dine out fairly regularly and made some nice local friends and girlfriend. I couldn't live like this in the USA.

Same for me. I can work remotely online. The only tough thing for me will be the time zone difference as my company is in Madrid but they will be flexible as long as I get work done. Buenos Aires prices are still good but I am mostly moving because I sold my flat in Madrid and want to buy in Buenos Aires while prices are lower.

 

[BuySellBA]

All fabulous advice on this thread. In a perfect world, one should retire in a city they truly enjoy being in. However, we know this isn't always easy when you are on a fixed income. The most important thing is to be aware of how much you spend no matter which city you are going to retire in.

And then go visit the city and spend an extended period of time before deciding to relocate there permanently. Also, try checking out different neighborhoods within that city. One area you might not like but you may love another neighborhood. See what is important to you personally. Some people just retire to a city based on how cheap it is and are absolutely miserable there.

Argentina is not a stable country. Things can swing from expensive to affordable back to expensive. We find it's still a relative bargain compared to most world capital cities with a high quality of life.

 

[Flamingo]

The only thing certain about Argentina is that things are never stable here for long. It is difficult to say if Argentina will get cheaper again but this time it feels different. I was not a big Milei fan during the election but I have to admit that Milei is very serious about cutting the budget. I don't agree on everything he is cutting but I don't think anyone doubts that he will cut government spending. It's all happening quickly.

During the $1 USD = 1 Peso days Argentina was very expensive here. Inflation is a real thing here. The blue dollar has been so strong for so long many expats took it for granted but prices seem like they are heading up even more. If I didn't already own an apartment here I am not sure I would rush to move down here to retire.

 

[Larry]

I would say it is not a wise choice to retire. Better places around the world that are more affordable. Prices under ex-President Menem were very high and salaries were close to first-world levels. Poverty levels in Argentina are above 60% which will cause crime to go up and many social issues to come.

You can go to Spain and probably have better quality of life, safer, cleaner and even more affordable. Other spots in Europe are probably more affordable or will be soon compared to Buenos Aires.

Many expats that came to Buenos Aires over the years did so to arbitrage the US dollar but in US dollar terms the country is much more expensive than last year. I would be careful assuming you can live here in retirement on fixed income. Hope for the best and plan for the worst.

 

[Wally]

I would say it is not a wise choice to retire. Better places around the world that are more affordable. Prices under ex-President Menem were very high and salaries were close to first-world levels. Poverty levels in Argentina are above 60% which will cause crime to go up and many social issues to come.

You can go to Spain and probably have better quality of life, safer, cleaner and even more affordable. Other spots in Europe are probably more affordable or will be soon compared to Buenos Aires.

Many expats that came to Buenos Aires over the years did so to arbitrage the US dollar but in US dollar terms the country is much more expensive than last year. I would be careful assuming you can live here in retirement on fixed income. Hope for the best and plan for the worst.

I agree the costs have gone up since last year however I would stop short of saying I would not recommend Buenos Aires. @Surfer what city/state do you live in now? My guess is BA will be much cheaper than what you are paying back home. Maybe retiring in the US is not an option for you and you are deciding amongst other cities around the world.

I would argue that BA is going to be affordable compared to most major cities in the USA. Taxes will be lower unless you live in a state with no income tax anyway. I have family in the USA and its shocking what the utilities cost. Even if they go up 400% which I am told they might, I would guess it will still be cheaper than USA. Same as HOA fees.

You can still live much cheaper in BA vs. much of USA but I do agree Spain may become more affordable than BA in the next few years.

 

[earlyretirement]

I agree the costs have gone up since last year however I would stop short of saying I would not recommend Buenos Aires. @Surfer what city/state do you live in now? My guess is BA will be much cheaper than what you are paying back home. Maybe retiring in the US is not an option for you and you are deciding amongst other cities around the world.

I would argue that BA is going to be affordable compared to most major cities in the USA. Taxes will be lower unless you live in a state with no income tax anyway. I have family in the USA and its shocking what the utilities cost. Even if they go up 400% which I am told they might, I would guess it will still be cheaper than USA. Same as HOA fees.

You can still live much cheaper in BA vs. much of USA but I do agree Spain may become more affordable than BA in the next few years.

I agree with this philosophy. You should do a head-to-head comparison for all the cities that you are thinking about. Include a full list of ALL expenses that you will possibly spend. I posted in a previous post all the categories you will want to include. My goal is to eventually retire in Buenos Aires someday. I'm waiting for my kids to get through school in the USA. For education, I still think the USA beats Argentina. 2 of my kids were born in Buenos Aires but I made the conscious decision to raise them in the USA and get them educated here. I don't regret that plan for a second.

I own a few apartments in Buenos Aires and just bought a few more properties a few months ago. My goal is to move into one of those once I retire. I plan to split my time between Mexico, USA and Buenos Aires. But probably spend more time in Buenos Aires. I think one of the key aspects of a successful retirement in Argentina is owning your own property. I can't emphasize this enough.

Over the past 22 years I have encouraged as many friends and employees to buy an apartment in Buenos Aires when prices were affordable. That has been the recipe for success for most of my friends there. The ones that did not listen to that advice have had to move to Spain as the economy is stronger there and they could get a better job. They are renting there too but I think eventually when you retire, not owning your own place is a bit dangerous. And this goes for any country, not just Argentina.

Once you own your own place, that is the biggest chunk of your monthly expense. My friends that are in Buenos Aires that don't make much money get by because their place is all paid for. Their monthly expenses aren't high.

I do agree Spain could be another country that retirement could offer a high quality of life but I'm not sure how easy it is to get residency there. Mexico is fairly easy to get permanent residency in but cost there have jumped up with the super peso.

 

[Scottishgaucho]

My advice woud be once you retire come for a six month holiday and see how you get on. Then you can decide for yourself whether you want to commit yourself to living here permanently.
I have a feeling that in a few years time Argentina will no longer be the bargain detination it once was.

 

[Surfer]

If it makes you feel better I've been mugged in Buenos Aires too it happens everywhere just gotta try and live and learn

LOL. It doesn't make me feel better but you make a good point. I have not met or heard of many that got mugged in BA but you are right it can happen anywhere. It is just in Rio you have to always look over your shoulder. I didn't feel like that in BA. I have traveled around South America quite a bit and so far I like BA the most.

I agree with this philosophy. You should do a head-to-head comparison for all the cities that you are thinking about. Include a full list of ALL expenses that you will possibly spend. I posted in a previous post all the categories you will want to include. My goal is to eventually retire in Buenos Aires someday. I'm waiting for my kids to get through school in the USA. For education, I still think the USA beats Argentina. 2 of my kids were born in Buenos Aires but I made the conscious decision to raise them in the USA and get them educated here. I don't regret that plan for a second.

I own a few apartments in Buenos Aires and just bought a few more properties a few months ago. My goal is to move into one of those once I retire. I plan to split my time between Mexico, USA and Buenos Aires. But probably spend more time in Buenos Aires. I think one of the key aspects of a successful retirement in Argentina is owning your own property. I can't emphasize this enough.

Over the past 22 years I have encouraged as many friends and employees to buy an apartment in Buenos Aires when prices were affordable. That has been the recipe for success for most of my friends there. The ones that did not listen to that advice have had to move to Spain as the economy is stronger there and they could get a better job. They are renting there too but I think eventually when you retire, not owning your own place is a bit dangerous. And this goes for any country, not just Argentina.

Once you own your own place, that is the biggest chunk of your monthly expense. My friends that are in Buenos Aires that don't make much money get by because their place is all paid for. Their monthly expenses aren't high.

I do agree Spain could be another country that retirement could offer a high quality of life but I'm not sure how easy it is to get residency there. Mexico is fairly easy to get permanent residency in but cost there have jumped up with the super peso.

Thanks for this advice. I do have a spreadsheet of what I spend now but hopefully some of this stuff I cut back on in retirement. I agree about owning a place. We have had a shocking appreciation in real estate here in California. I plan to sell my place maybe this year or next year once I retire. To be honest that is what I mainly will fund my retirement on. I will sell my place here and buy a property wherever I retire. I wouldn't be able to retire if I did not purchase this house I live in now a few decades ago.

My advice woud be once you retire come for a six month holiday and see how you get on. Then you can decide for yourself whether you want to commit yourself to living here permanently.
I have a feeling that in a few years time Argentina will no longer be the bargain detination it once was.

This is good advice. I came before for 3 months and enjoyed it. That was a long enough visit to know I would enjoy BA. My only concern is the inflation there. There is talk of BA becoming expensive again like the 1:1 days and if that happens I am not sure how long my cash will last.

I agree with you that in a few years it won't be a bargain like before. Residency there seems attainable. I need to research about Spain and spend some time there. I am reading from multiple places it is affordable. What cities there do people recommend?