Retirement in Mexico
Retire in Baja for 1,000 – 2,000 USD per couple!
Want to retire in Baja? Many people ask me — especially these days! Maybe they just want to live somewhere with lower density, plenty of outdoor living, fresh air, organic fruits, vegetables and fresh seafood, sunshine and an overall healthier lifestyle.
Maybe they want to shelter in place in a warmer, calmer setting. Or maybe they don’t have a large pension and their portfolio has changed. Whatever the reason, retiring in Baja remains a healthy and wise financial decision. Live better — spend less!
Your house will always be your biggest expense, but once it’s paid for, the rest of your monthly costs are surprisingly low.
We have lovely homes from around $120 K to $450 K (and up). An average “expat-style” home — perhaps in a gated community, with ocean views and a shared or private pool — runs about $250 K to $375 K. Click here to see available listings on the MLS.
Health Care
Health care is still very reasonable in Baja, as throughout Mexico. When you buy a home and become a permanent resident, you can enroll in the public health system (now called IMSS Bienestar), which provides coverage for most basic and emergency services.
The annual contribution depends on income — typically $120 – $250 USD per couple per year. It’s socialized medicine and extremely helpful in a crisis. Many expats also choose to supplement it with private health care or insurance.
Private hospitals and clinics operate in every major town in Baja California Sur. For $45 – $90 USD you can see most specialists, often the same day. MRIs, ultrasounds, lab tests, doctor visits, and hospitalization cost a fraction of U.S. prices.
Most expats do a bit of both — registered in the public system for major coverage and using private clinics for convenience. Private health insurance similar to U.S. plans is also available.
In La Paz we have several excellent hospitals and clinics, including Fidepaz Hospital, Centro de Especialidades Médicas, and Hospital Quirúrgico del Sur. The public Salvatierra Hospital, opened in 2010 and still considered one of the most advanced in Mexico, also serves the region. Medical costs remain roughly 20–30 % of U.S. levels, while dentistry and prescriptions average 15–25 %.
I want to live there — but how much does it cost?
That’s the best part. It’s still incredibly reasonable to live in Baja. Below is an updated estimate showing how an expat couple can live comfortably on $1,000 – $2,000 USD per month, depending on lifestyle.
This estimate assumes you own your home and excludes travel or major shopping. All figures are approximate and in USD, based on current average expenses for a couple.
Per Month (2025 estimates):
- HOA (when applicable) – $120
- Property taxes – $35 (≈ $420/yr)
- Electricity – $45 (winter average)
- Gas for cooking/dryer – $18
- Water – $10
- Part-time cleaner – $220 (twice a week)
- Gardener – $170 (once a week)
- Pool maintenance – $220 (once a week)
- Internet – $20
- Cable / Streaming – $25
- Groceries – $450
- Two cell phones – $45 (data + long distance)
- Restaurants – $420 (1–2 times a week)
- Gas for one car – $220
- Car insurance – $35
Total ≈ $2,053 USD per month
(Cleaner, gardener, pool service, and frequent dining are optional — so you could easily live well on under $1,000 USD a month.)
Note: Electricity bills are higher in summer if you use air conditioning regularly.
