John Howells - Choose Mexico for Retirement: Information for Travel, Retirement, Investment, and Affordable Living

The first edition of Choose Mexico, published in 1985, bore the subtitle Retire on $400 a Month. Even in those days, two decades ago, that wasnt a lot of money, although the dollar went further in the United States and Canada than it does today. Our assertion that it was possible for a couple, living somewhat frugally, to be comfortable in Mexico on a $400 budget was based on personal observations, numerous interviews, and responses to a questionnaire from retired North Americans all over Mexico. It was realistic at that time. But even then we knew that things could change and cautioned readers to check the books copyright date and get a newer edition if it was more than a couple of years old.

Things did change. Within three years we had to up that minimum figure by 50 percent, and a couple of years later it had doubled. It has been a long time since we stated our estimate of what it costs to live comfortably in Mexico, partly because change was so rapid and partly because we realized that our readers have greatly varying ideas about what constitutes a comfortable lifestyle.

Finally, we think we have arrived at a way of stating the situation in terms understandable to people at all income levels: If you can afford to live well in the United States or Canada, you can afford to live better in Mexico. And if you cannot quite make it on your income, you might well be able to in Mexico. This is true because your expenses in Mexico will be at least a quarter and perhaps a third less than at home. (You will need to show a minimum income to qualify for residency, which is explained later in the book.)

How much income is needed to maintain a particular lifestyle varies widely between individuals. Weve had retirees claim that they do okay on $800-a-month budgets (one man reported living on $400, but he said he admitted he could not recommend it for everyone). Other expats claim a $1,000 minimum is needed, while still others do not believe it can be done on less than $2,000. From our interviews with expatriates living in Mexico, the consensus seems to be that $1,200 to $1,600 is a viable range for a couple with a lifestyle at least as high-quality as they led before they made the move to Mexico. A couple we know well tells us they are living comfortably, but without frills, on their income from Social Security. One thing we recommend against is relocating to Mexico if you have little or no funds for those emergencies that are sure to occur. Youll not find any safety net in Mexicono welfare, no food stamps, and you cannot expect much assistance from the North American community. Thats one reason the government insists on your proving a minimum income before granting permission to immigrate.