Portugal Retirement Today

Anyone who plans to retire abroad in Europe should give Portugal a serious look as a retirement destination. The cost of living is the most affordable in Western Europe, the climate is mild, and a Portugal retirement has been adopted by many European expatriates.

Portugal Retirement: The Economy

Although Portugal is a developed country with a modern economy, it is one of the least of the developed countries in Western Europe. As a result, the cost of living is relatively low compared to the United Kingdom and the Scandinavian countries. Today, a Portugal retirement has become a very popular option for many retired Europeans seeking a nearby country with a lower cost of living.

Portugal’s per capita GNP when adjusted for purchasing power is $20,890 (USD) which is lower than most of the other Western European countries with per capita GNP’s hovering around the $30,000 range.

This is not to say that Portugal is a “developing country”. The country has a modern infrastructure in place that most retirees will find more than adequate for their needs. Today, Portugal is an active member of the European Union.

The country’s economy is largely based on service industries. Small family owned retail outlets are still present in relatively large numbers and tourism has become an increasingly important part of Portugal’s economy. Tourists are attracted by the country’s mild Mediterranean country, the country’s lower cost of living, and a relatively safe and stable country to visit or to select as an overseas retirement destination.

Streets of Lisbon.

Manufacturing and agriculture have generally been declining in importance. Although in decline as a percent of generating Portugal’s national income, agriculture still has a very strong presence in the country’s physical landscape. Much of Portugal is covered with cereals, olive trees, and vineyards which helps maintain a rustic look to the country.

The biggest economic challenge to Portugal may be from the Eastern European countries in the former Soviet bloc, which offers lower cost labor costs that is attractive to foreign investors.

Portugal Retirement: Food

Anyone who decides on Portugal for living abroad will find an abundance of fine dining in any of the country’s major cities as well as an abundance of nightlife with a wide range of discos and bars.

On the other hand, traditional Portuguese food are based on simple ingredients – and make common use of sausages, seafood, olive oil and tomatoes. Oddly enough, many Portuguese had settled in my former home state of Hawaii years ago and left their cultural imprint. Portuguese sweet bread, spicy Portuguese sausage and Portuguese bean soup still remain some of my favorite eats today.

At the opposite end of the dining scale in terms of price, retirees will find that street vendors can provide a wide range of specialties that include grilled sardines and soups.

Portugal Retirement: Healthcare

Healthcare is most widely available in the larger cities of Portugal. Public and private hospitals and medical care are available. The quality of healthcare continues to improve overall but it is possible to obtain very high quality medical care in more private hospitals.

The large number of British expatriates in Portugal has also resulted in the development of British hospitals in the country. More recently, medical tourism has begun to take root in the country and promises to offer retirees truly world class medical and dental care. Medical procedure costs will typically be as low as 25% of the cost in other European countries.

Portugal Retirement: Housing

The recent global crisis has affected Portugal in ways that will work to the advantage of a retiree deciding on a Portugal retirement. There is also an oversupply of housing available and over the last several years the value of homes have steadily declined by 5% on the average. This trend is expected to last until 2010.

Retirees should be able to find affordable housing either for rent or purchase should they opt for living abroad on a Portugal retirement.

Prices are highest in Algarve, Portugal’s primary upscale tourist destination for obvious reasons. And retirees will find the cost of housing somewhat lower in Lisbon. Although there is an oversupply of housing, the rental market is a bit tight, but that is slowly changing as the country changes laws to open up the rental market.

Portugal Retirement: Social and Political Issues

Although some European countries have been affected by terrorist acts (quite noticeably in neighboring Spain), Portugal ranks as one of the safest countries in Europe and the world (actually safer statistically than the United States or the United Kingdom).

Since the late 1900’s, Portugal has experienced very positive economic growth and has become a member of the European Union. For the most part, the country has benefited from this growth and has evolved into a politically stable democracy that makes for an ideal overseas retirement destination

A more rural look at Portugal's landscape.

Portugal Retirement: Communications and Transportation

As a developed country, a retiree can expect a full range of communications and transportation services in Portugal’s major cities and popular tourist destinations.

Portugal Retirement: Summary

Although it is not the most affordable country in the world to retire abroad to, it is one of the more affordable countries for living abroad in Europe. Portugal is politically stable, has a pleasant climate, offers a unique cuisine, and is steadily improving its healthcare system to world class standards.

Portugal is definitely one of the best places to retire in Europe at the moment although I suspect that some of the Eastern European countries will prove to be quite competitive in the near future.

Retiree’s rating of Portugal for Living Abroad: 5 .0/5.0

(Photos by: WorldCupBlog, R. Gurgel, Evalerio)

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