One
of Budha temples in Indonesia
We
have talked about of cost of living index at previous post: What Indexes should be Considered to Find Retirement Countries? - part 1 | Tanza Erlambang Update
Another
important index to considered as cheaper place is local purchasing
power index.
This
index refers to the power to purchase (goods and services) based on
local salary, then, the index is compared to USA (New York).
As
an example, country with local purchasing power index 45 means that:
-
people of that country can afford to buy 45% good than their peer in
New York, USA.
Moreover,
Marlene Satter (2019) wrote article about “15
Cheapest Countries for Retirement (Some of Which May Surprise You).”
6
of them are following (may not in order):
1.
Sri Lanka
-
Cost of living index is 30.24 and Local purchasing power index is
17.36
2.
India
-
Cost of living index is 24.17 and Local purchasing power index is
17.15.
3.
Malaysia
-
Cost of living index is 39.38 and Local purchasing power index is
22.75.
4.
Pakistan
-
Cost of living index is 20.40 and Local purchasing power index is
15.42
5.
Columbia
-
Cost of living index is 30.15 and Local purchasing power index is
22.46
6.
Indonesia
Other
countries considered cheaper are: Philippines, Mexico, Vietnam,
Serbia and Bulgaria.
Have
you planned to retire overseas? Where?