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International Living magazine has named the five most affordable places to live or retire in 2026, based on the cost-of-living category of its 2026 Global Retirement Index.

The ranking considered climate, healthcare, visa availability, lifestyle, and overall cost.

Sri Lanka topped the list, praised for its low-cost local transportation and easily obtainable retirement visas. Couples can live luxuriously on $2,200 (£1,637) per month or modestly on $1,000 (£744) with careful budgeting.

Vietnam ranked second, with the average monthly cost of living in Hanoi under $1,800 (£1,339). Low rent and affordable healthcare make it an attractive destination.

Thailand came in third, where couples can live comfortably for about $2,000 (£1,488) per month in cities like Chiang Mai or coastal towns such as Hua Hin, thanks to affordable housing, accessible services, and convenient transportation.

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