Rising living costs in the United States have pushed many retirees to rethink where and how they spend their later years. After the financial fallout of the Great Recession in 2008 wiped out careers and savings for countless households, relocating abroad became a practical way to maintain comfort without financial strain.

One city that continues to draw attention is Cuenca, Ecuador, a place known for affordability without sacrificing quality of life. With the right financial decisions, an upscale lifestyle abroad can remain well within a Social Security budget.

Why Cuenca and Ecuador Attract Retirees

Instagram | timmayay | Cuenca offers a high-end lifestyle and modern amenities at a fraction of U.S. costs.

Cuenca offers a cost of living far lower than most U.S. cities, while still providing modern housing, reliable infrastructure, and access to healthcare. Many retirees live in spacious, contemporary apartments, including penthouse-style residences with terraces overlooking rivers and distant mountain views. Dining out several times a week, hiring household help, traveling often, and still setting aside up to 20% of monthly income for savings remains realistic here.

Lower prices alone do not explain the difference. Some expatriates in Cuenca spend far more while living similar lives. The gap comes down to financial choices made after relocating.

Key Financial Decisions That Keep Costs Low

1. Choosing Not to Own a Car

Walkability plays a major role in reducing expenses. In central Cuenca, about 90% of daily needs sit within a 10-minute walk. Taxis average $2.50 per ride, while the city’s light rail costs just $0.17 with a senior discount.

By comparison, owning a car in the United States costs over $1,000 per month when factoring in financing, insurance, fuel, maintenance, parking, and taxes. That figure alone can equal half of a modest monthly retirement budget. In Cuenca, transportation expenses can stay near $25 per month.

2. Renting Instead of Buying Property

In the U.S., owning a home often feels like a key financial milestone—but abroad, it’s not always the smartest move. In Ecuador, for example, property can cost a third less than in major U.S. cities. Still, non-citizens can only buy with cash—mortgages aren’t available.

Renting is far cheaper—up to 75–80% less—and avoids property taxes, upkeep, and unexpected repairs. A steady monthly rent also helps with budgeting, especially when housing is your largest expense.

3. Prioritizing Health Over Medical Spending

According to RBC Wealth Management, a healthy U.S. couple between ages 65 and 74 spends about $13,000 annually on healthcare. That number climbs to $23,000 from ages 75 to 84 and reaches $40,000 after age 85.

Healthcare costs in Ecuador remain much lower. Many retirees enroll in the national healthcare system while keeping Medicare coverage in the United States. Still, medical usage often stays minimal due to daily habits focused on wellness.

Regular strength training, cardio, yoga, walking-based routines, home-cooked meals, and proper rest reduce the need for frequent doctor visits, limiting care to annual physicals and occasional specialist checkups.

4. Using Senior Discounts to the Fullest

Freepik | Drazen Zigic| At 65, residents gain "third age" priority access and significant financial benefits.

At age 65, residents qualify for “tercera edad,” meaning “third age.” Along with priority service at banks, supermarkets, and airports, the financial benefits stand out.

Senior discounts include:

1. 50% off base fares on flights originating in Ecuador
2. Half-price cellphone and internet plans
3. Reduced light-rail fares
4. Discounted cinema admission
5. Monthly refunds on the 15% IVA sales tax, capped at $140

These benefits require asking for them, as none apply automatically. While savings may seem modest by U.S. standards, they stretch much further when monthly expenses run at about one-third of the American average of $7,400.

5. Earning More Through High-Yield CDs

Savings growth becomes possible by avoiding large upfront purchases like real estate. Ecuador offers government-insured 1-year certificates of deposit paying over 10%, with savings accounts earning 7% or more. These accounts carry government protection up to $31,000, similar to FDIC coverage. Larger amounts can be spread across multiple institutions.

Although interest rates have dipped slightly, returns remain far above the U.S. average 1-year CD rate of 1.93%.

Financial Choices Shape the Cost of Expat Life

Lifestyle expenses remain flexible. Owning a car, skipping senior discounts, favoring overpriced expat restaurants, or relying heavily on imported food and alcohol can quickly raise monthly costs. Without unlimited income, those decisions often reduce travel opportunities and savings potential.

Relocating to a country with a lower cost of living creates opportunity, but daily financial decisions define the outcome. Comfort, stability, and long-term security depend less on geography and more on how resources are managed after the move.

Moving abroad can provide financial breathing room for retirees relying on Social Security. Still, success comes from thoughtful choices around housing, transportation, healthcare habits, and savings strategies. When spending aligns with priorities, living well overseas becomes sustainable, even on a modest fixed income.