How Much Money Do You Need to Retire in Uruguay?

Located between Argentina and Brazil, Uruguay is the second smallest country in South America, spanning only 68,039 square miles. While it may be small in size, this coastal country is a big hit with retirees around the globe. In fact, "International Living" magazine ranked Uruguay in the "top 20" as the world’s best places to retire in 2018

It’s really no wonder why Uruguay is such a popular retirement destination. This culturally vibrant country boasts a stable economy, mild climate, stunning south Atlantic Ocean beaches, affordable healthcare, safe drinking water, low taxes and very little crime. Unlike many Latin American countries, Uruguay also offers modern, top-notch infrastructure – including well-maintained highways, good public transportation and one of the fastest Internet speeds in Latin America.

Unfortunately, amenities and services come with a cost: Uruguay isn’t the most affordable retirement destination in Latin America (for comparison, see What Does It Cost to Retire in Costa Rica?). Even so, it is possible to make a home here without breaking the bank. According to some estimates, the average retired couple could live comfortably in this South American country for as little as $2,000 a month. 

While most items cost a good bit less in Uruguay than they do in the U.S., your dollar won’t stretch quite as far as it would in some other Latin American countries. According to Numbeo, a database of user-contributed info about cities and countries worldwide, a meal at an inexpensive restaurant in Uruguay will run you about $10.29, a gallon of milk costs $2.70 and a dozen eggs is $2.39. A pair of jeans costs around $88.74 and a movie ticket is priced around $9. The rent for a three-bedroom apartment in the center of a town will run you an average of $802, while a three-bedroom apartment in the 'burbs usually costs about $641 a month.

But of course, these numbers can vary, depending on where you settle and the lifestyle you adopt. As with any country, Uruguay is home to a wide array of cities, some with a higher cost of living than others (for details, see Top 4 Cities to Retire to in Uruguay.) For example, Montevideo was ranked as the fourth most expensive city in Latin America by consulting company Mercer. Some retired couples cough up as much as $4,000 a month to live in the fast-paced capital.

Located about 300 miles up the Río de la Plata from Montevideo, Salto is the second largest city in Uruguay. Although many consider it a smaller version of Uruguay’s capital, Salto has a much lower cost of living. According to some estimates, a retiree could live in Salto for as little as $800 a month.

Punta del Este, a ritzy beach resort known as the Uruguay's answer to St. Tropez, also carries a relatively high price tag, as vacation spots tend to do. Renting a one-bedroom apartment in this sophisticated coastal town generally costs about $1,000 per month (compared to around $1,200 for the average U.S. pad), and dining out and entertainment will run you another $600 per month. 

However, cost of living is much lower in Uruguay’s countryside towns, such as Mercedes, and even in the less fashionable beach communities, such as Atlántida and Piriápolis. La Barra is another popular seaside spot. Houses in this budget-friendly locale sell for between $50,000 and $150,000, and can be rented for  $500 to $700 a month.

For American expats, the phenomenally low cost of healthcare perhaps the greatest financial benefit of retiring in Uruguay. Because the country has a national  system with absolutely no restrictions, everyone in the country is entitled to quality medical treatment – even foreign residents.

Expats in Uruguay can also sign up for a private hospital plan called a “mutualista.” With this type of healthcare plan, you become a member of a hospital and go there for all your needs and scheduled services. You pay a monthly membership fee to the mutualista and also owe a small co-pay when you see a doctor. The membership fee typically ranges from $100 to $150 a month, and co-pays run around $7.

With a temperate climate, gorgeous scenery, lively culture, friendly people and low crime rates, Uruguay is an absolute dream-come-true for many American retirees. While it's certainly not among The World's Most Luxurious Retirement Destinations, this desirable country does have a higher cost of living than many other Latino lands (as indicated in Find Latin America's Safest, Cheapest Countries).

As you determine how much money you’ll need to retire in Uruguay, take a few factors into consideration. Your cost of living will vary greatly depending not only on where you choose to live, but also on how you choose to live. Your cost of living will also be affected by the exchange rate of the U.S. dollar against the Uruguayan peso, which fluctuates frequently (currently, it's about 29 pesos per dollar). All things considered, it is entirely feasible to live in Uruguay on just $2,000 a month – maybe less, if you stick to a shoestring budget and stay away from big cities and fashionable resort areas.