How to Calculate the Cost to Retire in Ecuador

Co-authored by Dmitriy Fomichenko and Nihal Shetty

Last Updated: January 26, 2022 References

If you’re a foreigner looking to retire in Ecuador, you may be wondering how far your retirement income will take you. Ecuador is not only a country full of natural beauty, but also one with a low cost of living—perfect for retirees. Since Ecuador uses the U.S. dollar, you won’t have to worry about complicated currency rates of exchange if you’re already used to this system. We’ll walk you through a sample monthly budget, so you can have a better idea of what it looks like to calculate the cost to retire in Ecuador.

1

Budget $1,250 for monthly expenses in Ecuador.

For $1,250, you can retire in Ecuador in both luxury and comfort. In the following list, we’ll take you through all the items that would make up your monthly budget. Adding up the costs from our sample budget (and excluding the one-time visa fee), you can get a better idea of how much you’ll need to retire.
- Since the average Social Security check is over $1,250, you can save your pension income for any other expenses as they come up.

2

Rent a furnished apartment for around $450.

A 2-bedroom apartment in a city like Cuenca will cost you $400-$500. For that price, you’ll be able to live in the center of the city and have a fully furnished apartment to enjoy. Opting for an unfurnished apartment will drop your monthly rent by another $100.^{[1]
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Research source} Popular cities for expats in Ecuador include:^{[2]
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- Quito: The capital of Ecuador, Quito has access to some of the best medical facilities in the country. Rent is slightly higher here than in other cities, but the city is picturesque and filled with beautiful architecture. For history lovers, Quito’s city center was UNESCO’s first-ever World Heritage Site.
- Cuenca: Safe and known for its clean mountain air, Cuenca is a top pick for expats. There are plenty of expat groups and clubs around the city if you’re looking for company in your retirement. Cuenca has a wonderful selection of fresh produce and food, so if you’re looking to eat well, consider this city.
- Manta: Popular among retirees for its beaches, Manta is another city that’s somewhat more expensive than other cities in Ecuador. Manta is less international than Quito or Cuenca, so consider it if you’re looking for a more authentic South American experience.
- Some retirees choose to live in other areas of the country, including rural regions outside of the cities. Be aware that medical care outside of cities may be of significantly worse quality, but if rural living is something you’re interested in, it may be worth it.^{[3]
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3

Pay $100 for utilities.

Electricity will be your most expensive utility. For electricity, expect to pay around $30 a month. Water, trash removal, and phone costs will round out the rest of your utility budget. Each of these costs will vary depending on the city you live in, but your total utilities cost will likely come to under $100 a month.^{[4]
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4

Budget $300 for groceries.

Ecuador has plenty of fresh produce, especially in Cuenca. For items like eggs, meat, and cheese, you can expect to pay less than half of what you would pay in the United States. $300 a month will net you a generous amount of fresh fruits and vegetables, meat, and other produce.^{[5]
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- Restaurants in Ecuador are quite inexpensive. Many restaurants offer a lunch deal of $1-$3 for a whole meal, so feel free to eat out whenever you’d like.^{[6]
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- Although some name-brand imports, such as cereals, may be more expensive in Ecuador, you can try out the local equivalents to save even more money.^{[7]
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5

Spend $200 on entertainment.

Retirement is a time to enjoy yourself, and there’s no need to skimp on entertainment. In Ecuador, outings to the bar or golf course will cost you significantly less than in the United States. You can get two tickets to the movies for around $10, and you can have a nice, activity-filled weekend for around $50.^{[8]
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Research source} In a month, expect to spend around $200 for entertainment activities.
- Located on the equator, Ecuador has a climate that has been described as springlike all year round.^{[9]
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  Research source} Take advantage of the mild temperatures by heading outdoors, whether to the coast, a short hike through the outskirts of the Andes, or just a picnic in one of the many local parks spread across Ecuador’s major cities.
- If you want to get the most out of your excursions into Ecuadorian culture, it’s worth picking up some Spanish as well. Although you can get by in major cities as an English-only speaker, speaking Spanish will help you connect with the local population far more easily.^{[10]
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6

Budget $100 for transportation if you’re an explorer.

Buses and taxis are always an option, but rent a car to explore the country. Renting a car for a weekend will cost you anywhere from $15-$25 a day.^{[11]
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Research source} To get around the city, expect to pay around $0.25 for a bus ticket, and around $3.00 for a taxi ride. All in all, budget around $100 a month for transportation if you plan to travel a lot.
- You likely won’t need your own car in Ecuador, unless you live in a rural region. In that case, consider obtaining an International Driving Licence, as well as a translation of your licence and registration into Spanish.^{[12]
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- Since Ecuador is a mountainous country, roads can be steep and twisty. Drivers aren’t always careful with following road regulations, so be cautious while driving.^{[13]
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- Although Ecuador is quite safe, if you’re intent on exploring the country, be careful around the northern regions. The Colombian border area has seen a lot of crime in past years, and it’s worth steering clear of this part of the country.^{[14]
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7

Hire a maid service for $200.

Almost all middle-class families have some form of domestic help. In Ecuador, you can hire maids, as well as cooks or gardeners, at the fraction of the cost in the United States. You can hire a maid to work on a part-time basis (for 3-4 hours a day) for $200 a month.^{[15]
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- It’s best to hire a maid through a company which provides this service. In recent years, some expats have gotten in trouble with labor law regulations. By going through a company, rather than hiring a maid on a personal basis, you can make sure that your house-cleaner is compensated according to the law.^{[16]
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8

Spend $40 a month on an Internet connection.

Most internet plans in Ecuador have at least two options: basic and high-speed. A basic plan will cost you around $40 a month and includes a 20 Mbps connection, which is quite fast. You can also purchase a high-speed plan for $150 a month, which will take your speed up to 100 Mbps.^{[17]
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- Ecuador has been making a push for more fiber-optic cable connections throughout its major cities, which ensure even faster and more reliable Internet service. When you arrive in Ecuador, check to see if your Internet service provider has this option.^{[18]
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9

Budget $64 a month for public healthcare access.

Medical care in Ecuador is high-quality in major cities. Many retirees choose to pay for membership in IESS, the national Ecuadoran health care system, which costs around $64 a month. Some retirees instead opt for private insurance, which may be more expensive, but allows access to a greater range of private hospitals.^{[19]
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- With or without insurance, the cost of medical care in Ecuador is among the lowest in the world. Expect to pay 10-25% of what you’d pay in the U.S. for medical and dental procedures.^{[20]
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- There are a range of private health insurance options available in Ecuador, each with different costs and deductibles. It may be worth shopping around a few different options before finding the plan that works best for you.^{[21]
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10

Pay a one-time $450 visa fee.

The most popular kind of visa for expats is the retirement visa. This visa will allow you to stay in the country for 2 years, and can then be exchanged for a permanent residency visa. The process can take anywhere from 2 weeks to 3 months, so keep this timeline in mind when you apply at your nearest consulate. There is a one-time fee of $450 to receive the visa, but no additional costs afterward.^{[22]
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- In order to apply for a retirement visa, make an appointment with the nearest Ecuador consulate office. Virtual meeting options may be available. You’ll need to provide a visa application form, your passport and a copy of your passport, and any criminal records you may have. You can get a copy of the visa application on the consulate’s website.^{[23]
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- When applying for a retirement visa, you’ll have to prove that you have guaranteed income for life. A letter detailing your Social Security or pension benefits will meet this requirement.^{[24]
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11

Receive around $1,450 from Social Security.

The average Social Security check will meet most of your needs in Ecuador. The size of your Social Security check will differ depending on your lifetime earnings, so your check may be larger or smaller than $1,450. If you aren’t sure how large your check will be, you can get an estimate by creating a my Social Security account on the official Social Security website.^{[25]
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US Social Security Administration
Independent U.S. government agency that administers Social Security and related information
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12

Add any other retirement income to your budget.

Pension or investment income can be saved for emergencies.^{[26]
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Expert Source

Dmitriy Fomichenko
Financial Planner
Expert Interview. 28 June 2021.} Although most retirees find Social Security to be more than enough to cover their costs of daily living, if you have a pension plan in place, you can live in even greater comfort. Pensions can also be used to meet the guaranteed income requirement for retirement in Ecuador, so include this income while you make your retirement calculations.^{[27]
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- If possible, diversify your sources of income so you're not dependent on only one or two. This way, you'll have more financial security throughout your retirement.^{[28]
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  Expert Source
  
  Dmitriy Fomichenko
  Financial Planner
  Expert Interview. 28 June 2021.}