Puerto Vallarta, Mexico

Mexico is a big country with two long coasts, mountain towns and colonial cities, plus Mayan ruins, jungle, rain forest, rivers, and lakes. It’s also the most accessible “overseas” haven from the United States. You could drive back and forth if you wanted.

For all these reasons, Mexico is home to the biggest established populations of American expats in the world, making it a great choice if you seek adventure with the comforts of home. Mexico is no longer a super-cheap option, but it is our top pick for enjoying a luxury coastal lifestyle on a budget, in Puerto Vallarta. Puerto Vallarta is more expensive than other places where you might consider living or retiring overseas, but in Puerto Vallarta that’s not the point. This isn’t developing-world living. This stretch of Mexico’s Pacific coastline has already been developed to a high level.

Life here can be not only comfortable but easy and fully appointed, with world-class golf courses, marinas, restaurants, and shopping. This is a lifestyle that is available only on a limited basis worldwide, a lifestyle that is truly (not metaphorically) comparable to the best you could enjoy in southern California if you could afford it. Here you can afford it even on an average budget.

Until the 1950s, Puerto Vallarta was a small fishing village, modestly popular among Mexicans as a beach resort. In 1963, “The Night of the Iguana” was filmed just south of Puerto Vallarta. The film’s star, Richard Burton, was involved with Elizabeth Taylor at the time. She followed him on location ... and the paparazzi followed her. Suddenly Puerto Vallarta was all over the news — and on the map, as far as Americans were concerned — and it’s remained there since.

At about this time, the Mexican government began to invest heavily in infrastructure making Puerto Vallarta more accessible and attractive as a destination. Luxury hotels began to spring up, and Americans began to flock here. It is also one of Mexico’s most cosmopolitan beach resorts. Fully half the population works in the tourism business, so English is widely understood, a boon for those of us who speak little or no Spanish. A whole range of services has sprung up to cater to English-speakers, including everything from gourmet shops and restaurants to clothes design and medical care.

As a result, Puerto Vallarta today is home to more than 40,000 expats and foreign retirees. This is one of the biggest and most welcoming expat communities of expats anywhere in the world.

You probably won’t be able to live well here on Social Security income alone; however, if your retirement budget is a bit bigger and you dream of retirement on the Pacific Ocean, Puerto Vallarta deserves your attention.