By contrast, countries like Vietnam, Spain, or Portugal offer a much lower cost of living, often with a higher quality of life. But how much cheaper is it really? And what hidden costs should you watch out for when moving abroad after 60?

In this Blog I will try to compare the cost of living abroad vs the UK, focusing on key areas such as housing, healthcare, food, transport, and lifestyle. But this is hard to do because everyone’s financial situation is different. All I can do is provide comparisons from my own experience as a single man living in Hull, Yorkshire, which may be million miles away to a couple with children living in central London!!

I will look at what a realistic budget for retirees in Hanoi, Vietnam, might look like compared with living in the UK.

Why the Cost of Living Matters in Retirement

• Fixed Income – Most retirees rely on a state pension, private pensions, or savings, which means income is limited. But that depends if you decide or intend to work abroad, if you are allowed.

• Longevity – Retirement can last 20–30 years, so cost control is essential.

• Lifestyle Choices – Lower costs abroad and location can mean more leisure activities, travel, and comfort.

• Peace of Mind – Financial security is one of the foundations of a stress-free retirement.

Housing Costs

In the UK

• Renting or mortgage on a one-bedroom flat/house in a UK: £600 - £1000 a month.

• Council tax: £100–£200/month.

• Utilities (electricity, heating, water, broadband): £150–£250/month.

In Vietnam (Hanoi)

• Renting a modern one-bedroom apartment: £250–£600/month.  Renting outside the capital these costs can drop considerably.

• No council tax.

• Utilities: £50–£100/month.  My biggest electric bill has been £45 a month and that is probably because I have had the air con on every day blasting away. Water I pay £6 a month. No gas.

• Fibre broadband: £8–£15/month. But you will probably find when you rent an apartment that free internet access is included in your monthly rental, mine is. So realistically £0.

Comparison: Retirees in Hanoi can live in modern accommodation for less than half the cost of the UK.

Food and Groceries

In the UK

• Weekly groceries for one person: £50–£70.

• Eating out: £15 - £25 per meal at a mid-range restaurant.

• Coffee: £3–£4 per cup.

In Vietnam

• Weekly groceries for one person: £20–£30.   Cheaper if you buy local produce, some local costs bananas 60p a bunch, carton milk 35p, chicken breasts £3 a kilo. If you buy foreign foods you pay more.

• Eating out: £2–£5 per meal at local restaurants, £8–£15 at Western-style restaurants. Chicken pho (chicken and noodle in a broth), one of Vietnams most popular dishes can cost around £1.20. Bun cha, popular breakfast the same price. I have a full English breakfast maybe once a fortnight and that costs £5.

• Coffee: £1–£1.50 for Vietnamese coffee in cafés. My local coffee shop round the corner from my apartment I pay 30,000 vnd or 85p for a morning coffee. You don’t need an espresso here Vietnamese coffee is verry strong.

Comparison: Food and eating out are dramatically cheaper in Vietnam, though imported Western goods (cheese, wine, cereals) can be more expensive.  It is so cheap why bother staying in and cooking? I eat out every day. I think I have cooked at home probably less than 10 times in 6 months.

Healthcare

In the UK

• Free under the NHS for residents.

• Private health insurance: £150–£300/month for over-60s.

In Vietnam

• Public hospitals: very low cost but basic.

• Private hospitals: £150–£60 for a consultation, £250 for an MRI.  I have used a private eye hospital here, following an operation in the UK and it has cost me £13 for a consultation and assessment both times, service was very good and my eye specialist spoke perfect English.

• Health insurance: £800–£2,500/year depending on age and coverage.  This was a big shock to me when starting to cost things being from the UK and receiving NHS. I was receiving quotes of over £200 a month and some would not insure if you had any pre medical conditions. I found a great package at a very reasonable price, check them out I am sure they can help you too – Tanzing Pacific – click here to request a Free quote.

Comparison: You lose NHS benefits when abroad, but healthcare in Vietnam is much cheaper than private care in the UK. Insurance is essential for major treatments.

Transport

In the UK

• Monthly bus pass: £70–£90.

• Petrol: £1.60–£1.80 per litre.

• Taxis: £2.50 start, £1.50 per km.

In Vietnam

• Bus fare: 20–30p per journey.

• Petrol: £0.80–£1.00 per litre.

• Taxis: £0.50 start, £0.30 per km.

• Motorbike rental: £50–£100/month. Foreigners in Vietnam can only ride up to 50cc motorbikes legally. I currently pay £45 a month for a 50cc bike but are looking to buy one, which will work out cheaper in the long run. I could buy brand new around £500

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Comparison: Transport costs are a fraction of UK levels.

Many expats in Hanoi use Grab (ride-hailing app) for cheap, convenient travel.   If you see the traffic in Hanoi or Ho Chi Minh City you may not want to drive a car again!!  I can book a Grab motorbike ride, takes around 4 or 5 minutes for one to turn up, you can flag one down on the street corner but will cost you more, then to travel 20 minutes or 5km across town it costs about 90p.

Utilities and Everyday Expenses

In the UK

• Mobile phone plan: £15–£60 a month.

• Gym membership: £30–£50/month.

• Domestic help (cleaner): £15–£20/hour.

In Vietnam

• Mobile phone plan: £5–£10/month.  I took out a plan that cost £36 for 6 months and 6GB a day. In the UK I was paying £48 a month.

• Gym membership: £10–£20/month.   I joined one of the biggest gym chains here – California Gym and signed a contract for 18 months that cost me £300, or £17 a month.

• Domestic help (cleaner): £3–£5/hour. Again many rental agreements including a weekly cleaner.

Comparison: Everyday services are significantly cheaper in Vietnam. Retirees often enjoy conveniences they might not afford in the UK, such as regular home help.

Entertainment and Lifestyle

In the UK

• Cinema ticket: £10–£15.

• Pub meal with drink: £15–£20.

• Short-haul holiday: £300–£500.

In Vietnam

• Cinema ticket: £3–£5.

• Local beer in a bar: £1–£1.50.

• Day trips or short breaks: £20–£60.   Flight from Hanoi return to Bangkok, Thailand is around £90.

Comparison: Retirees abroad often enjoy a more active social life thanks to lower entertainment costs.

Monthly Budget Comparison  (everyone's financial situation is different so please check against your own circumstances)

Example: Single Retiree Living in the UK

• Rent: £750

• Utilities & council tax: £300

• Groceries: £250

• Healthcare/insurance: £50

• Transport: £80

• Entertainment & misc.: £300

• Total: £1,730/month

Example: Single Retiree Living in Hanoi

• Rent: £300

• Utilities: £80

• Groceries: £100

• Eating out: £100

• Health insurance: £150

• Transport: £50

• Entertainment & misc.: £150

• Total: £930/month

Savings: Around £800/month. That’s is nearly £10,000 per year.

Hidden Costs Abroad

While Vietnam and similar destinations are cheaper, there are hidden costs to consider:

• Visa renewals or runs – £100–£500 annually.

• Flights back to the UK – £600–£1,000 return.

• Frozen State Pension – no annual increases if you live outside certain countries.

• Imported goods – Western food, wine, and branded items can be costly.

• Healthcare emergencies – without insurance, hospital bills can be very high.

Why Vietnam Is Attractive for Retirees Over 60

• Low cost of living, especially housing and food.

• High quality of life on a modest budget.

• Active expat communities in Hanoi and Ho Chi Minh City.

• Affordable domestic help and lifestyle upgrades.

For retirees relying on a UK State Pension (currently around £11,500/year for the full new State Pension), Vietnam allows for a far more comfortable life than in the UK.

FAQs

Q: Can I live in Hanoi on my UK State Pension alone?
Yes. Many expats live well on £1,000/month or less, though savings and insurance are recommended.

Q: Are healthcare costs in Vietnam really affordable?
Yes, for routine care. But insurance is important for serious illness or emergency evacuation.

Q: Is food cheaper in Vietnam?
Yes, local produce and meals are very cheap. Western goods cost more.

Q: What’s the biggest saving compared to the UK?
Housing, healthcare, and eating out.

Q: Are there any areas where Vietnam is more expensive?
Imported alcohol, cheese, and luxury goods often cost more than in the UK.

Conclusion

For retirees over 60, the cost of living abroad vs the UK can be life-changing. In Vietnam, particularly Hanoi, you can:

• Rent modern housing for a fraction of UK prices.

• Eat out daily without straining your budget.

• Enjoy affordable healthcare with insurance in place.

• Live comfortably on £1,000 -£1,200/month compared to £1750 - £2,500+ in the UK.

The savings give retirees more freedom, less financial stress, and the chance to enjoy a richer lifestyle. While hidden costs exist, careful planning makes retiring abroad financially rewarding.

If you’re considering retiring in Hanoi or elsewhere abroad, your pension could stretch much further than you ever imagined.