Retiring in Mexico and living the good life is such a great idea. I fully recommend it. The first step towards it is figuring out if you qualify for a temporary residency visa. This document is the most important requirement to stay long-term in the country. In order to get it, you will need proof that you have the necessary funds to support yourself while living in Mexico. So, the next question is: How much money do you need to retire in Mexico?
To retire in Mexico you will need to prove financial solvency through 1) A savings or investments account of $43,000 dollars OR 2) A monthly income or pension of $2,500. But wait! not everything is lost if you don’t meet those requirements.
Mexican visa income requirements
When researching how much money do you need to retire in Mexico you will find conflicting information.
That is because there are two different formulas to calculate the income requirements to apply for a temporary resident visa. And they yield very different results.
The formula used in Mexico is calculated based on UMAs, a standard unit created by the Mexican government for tax purposes. That formula says the minimum required monthly income to apply for a visa is around $1,400 dollars.
But the formula used by consulates outside of Mexico is based on Mexico’s minimum wage. With recent increases to that, the minimum required monthly income is now $2,500.
But that’s not even it. These numbers recommended by the Mexican foreign affairs ministry since 2022 are not set in stone. They are just recommendations. I personally know people that have been approved with a social security income of $1,300. And I have also heard about cases of folks making more than $4,000 with six figures in savings accounts that have been denied.
Why is that?
Well, it turns out each consulate operates independently. They can decide their own requirements. Every one of them can use a different formula to calculate the minimum required income.
For example, the Mexican consulate in Chicago lists requirements of $25,036 dollars in savings or a monthly income of $1,505. However, the San Francisco consulate requires $33,200 dollars in savings or a monthly income of $2,010.
Some people have been successful traveling to the consulate in a different city where the requirements are lower in order to apply for their temporary resident visa.
Applying as a couple with two incomes also seems to increase the chances of getting it approved. Even if both individuals have incomes below the requirement.
In the end, the decision to approve your visa based on the money requirements is up to each consulate and the immigration officer in turn. Remember to be nice to them and don’t go in there demanding them to use a specific formula. You will just make things more difficult for yourself.
Check out our article on Visa requirements to retire in Mexico for more information on everything you will need to apply.
Cost of retiring in Mexico
In my humble opinion, the income requirements to apply for a temporary or permanent visa are too high.
Mexico is extremely budget-friendly. A couple retiring in Mexico can comfortably live on $1,500 dollars in most cities. And that is leaving some room for disposable income.
Let’s take Chapala for example. One of the largest American retirement communities in Mexico.
In Chapala, a couple can expect to spend this on a monthly basis:
| Item | Cost |
|---|---|
| Housing / rent | $400 – $1,200 |
| Utilities | $50 – $100 |
| Groceries | $300 |
| Transportation | $100 – $300 |
| Healthcare | $225 |
| Going out / Entertainment | $200 |
| Housekeeping (twice a week) | $250 |
| Total | $1,425 – $2,350 |
The table above assumes a very comfortable lifestyle. In the US, a similar standard of living would cost twice as much or more depending on the city.
With the exception of the most expensive beach towns like Cancun or some high-end neighborhoods in Mexico City where the cost of living is similar to the US, you can expect to find comparable prices all around the country.
If you are on a tight budget or you are looking to spend as little as possible, check out our article on the best places to retire in Mexico on a budget for some ideas. In there, we also break down the costs for each of the cities and towns to give you a good overview of the expenses you can expect.
If you are thinking more about living by the beach, we also have an article for that.
Note that this budget does not include saving for trips back to your country of origin. If that’s something you would like to do often to see family or friends, plan your budget accordingly.
Food in Mexico is not only delicious, but it is also cheap and high quality. For example, at the time of writing, two pounds of tomatoes in the US cost about $4.00. In Mexico, you can get them at farmer’s markets for $1.50.
When you do the math. The savings when it comes to groceries and food is quite significant.
The other significant savings is in housing. The difference between a comparable 2-bedroom condo in Chapala vs Arizona is about 50% less for either renting or buying.
And speaking of buying property. If that’s something you think you could be interested in, owning a house in Mexico is an almost automatic way to get your resident visa approved. I’d just recommend that you travel to Mexico as a tourist first (you do not need a visa to enter as a tourist for less than 180 days) and make sure the area you are planning to buy is actually somewhere you could see yourself living at.
Can I retire in Mexico on $1500 a month?
It is definitely possible to retire in Mexico on $1,500 per month. In fact, that amount of money goes a long way and can buy you a comfortable lifestyle for a couple, or a single person.
Consider that the average salary in Mexico for a college graduate is $650 dollars. And many families of 2-4 people manage to make ends meet with that.
A monthly income of $1,500 puts you in the top 5% of the country.
The most notable differences between living costs in the US/Canada/Europe, and Mexico are housing and groceries. Just in those two areas, you can save up to 40% for the exact same lifestyle. As a result, that will leave you some room for small luxuries and comforts.
Summary
- The official required monthly income to retire in Mexico is $2,500 or $43,000 in savings.
- However, in practice, the actual amount consulates ask for is somewhere between $1,400 and $2,000
- It is possible to retire very comfortably in Mexico with a monthly income of $1,500
