Sri Lanka tops list of most affordable retirement destinations in 2026

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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