When Donna Deeks and her husband decided to move from Arizona to Ireland for retirement, they were concerned about the cost of living. They wanted to buy a place of their own for their retirement overseas and worried that property prices in Ireland would make that dream impossible. They weren’t even sure they’d be able to afford keeping a car of their own on the Emerald Isle.
Today, nearly a year later, the Deeks are delighted to have found that the cost of living in Ireland is nowhere near as high as they feared. They’ve learned that, outside Dublin (which is a major European city and a national capital, with prices to match), the cost of living in this country can be reasonable, even a bargain in some regards, especially at the current rate of exchange between the U.S. dollar and the euro. And that’s certainly the case in misty, beautiful County Kerry, where the Deeks have chosen to settle.
Here’s how the couple compares their current cost of living in County Kerry with their cost of living back in Scottsdale a year ago.
Food. In Arizona, the Deeks spent $100 to $120 per week for groceries. They steeled themselves for a shock their first month in Ireland. Indeed, they were surprised, but pleasantly. “When I added up our first month’s total grocery bill, I nearly fainted,” Deeks says. The couple’s average food cost per week dropped to 75.65 euros ($87), including luxuries like wine, beer, fresh croissants and ground espresso. In Scottsdale, the couple visited four different grocers to get the best prices: two national chain stores, a regional store and a local market. In Kerry, they shop at a UK-Ireland grocery chain store and an Irish chain store. Many items are roughly the same price in both countries. Fruit is more expensive in Ireland, Deeks says, but costs are lower for fish, vegetables, bread, butter, cheese and other staples.
Utilities. This is where the cost of living in Ireland is higher. The Deeks’ average annual utility expense in Arizona was $2,000, including $1,550 for electric heating and cooling, $150 for an LPG range and $300 for water. Natural gas is not available in County Kerry, and oil is the most economical alternative for heating. Electricity is about 30 percent more expensive than in Arizona, but water charges are capped at 260 euros ($299) for two adults. The Deeks are projecting their total utility cost in County Kerry to come in at $2,700 for their first year, an increase of 35 percent over the total cost in Scottsdale.
Owning a car. The Deeks have bought a two-year-old economy car. They have perfect auto insurance histories from Arizona, with no claims ever. Their cost of auto insurance in Arizona was $1,080 per year. Their cost of auto insurance in Kerry is 680 euros ($782) per year while they’re driving on their American licenses. When they obtain Irish driver’s licenses, this rate will drop to 420 euros ($483) per year.
While the current drop in oil prices has brought the cost of gasoline down to about 5.08 euros ($5.85) per gallon in Kerry, that’s still high enough to make an American driver think twice about keeping a car here. On the other hand, European cars get much better mileage than their U.S. counterparts. The Deeks’ car in Arizona, where gasoline was $2 per gallon, got 36 mpg. That equated to a fuel cost of 5.6 cents per mile. The car they’ve bought in Kerry, where gasoline costs 5.08 euros ($5.85) per gallon, gets 65 mpg. That works out to a fuel cost of 8 euro cents (9.2 cents) per mile. A 100-mile trip in the United States cost the Deeks about $5.60, while a 100-mile trip in Ireland costs them about $9.20 — only $3.60 more. Driving 10,000 miles per year will cost $360 more than in the United States. With the lower cost of insurance, the Deeks are comfortable absorbing the difference.
Health care. Ireland has a nationalized health care system for citizens, but non-EU residents are required to purchase health insurance in two parts: hospitalization, covering stays and procedures in public and private hospitals, and coverage for everyday medical expenses. “When we found that a GP visit in Ireland costs about 50 to 60 euros ($57 to $69), compared with $180 to visit my doctor in Scottsdale, we decided to go for comprehensive hospitalization with minimal coverage for everyday expenses and a 500 euro ($575) deductible,” Deeks says. The cost per month for the policy the Deeks have chosen is 97.34 euros ($111.94). That’s $1,343 per year, instead of the $2,700 per year they were paying in Arizona for less coverage and a higher deductible.
Housing. In 2006, the average house price in Ireland was $450,000. Today, it’s $222,000. In County Kerry, some fine homes are to be had for reasonable prices. You could buy a three-bedroom home in County Kerry for as little as 100,000 euros. Ireland has recently introduced a property tax, but for a property valued at less than 1 million euros the tax is .18 percent. “We expected a tangible drop in our standard of living when we moved to Ireland, but it’s not working out as we’d planned,” Deeks say. “It’s turning out that our cost of living here in County Kerry is about the same as we had in Arizona, meaning we have cash left over for pub-hopping, sight-seeing and short flights to London to see our grandsons.”
Of course, you could spend much more, depending on the choices you make. But, as the Deeks have found, you can afford a rich and full retirement in Ireland with a retirement budget of as little as $30,000 per year.
Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group .
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The Cost of Retirement in Ireland Versus Arizona originally appeared on usnews.com
