A new report, researched by GoBankingRatings, has found that South Africa is the cheapest place to live and retire in the world. The group ranked 112 nations using four key affordability metrics provided by online pricing database Numbeo:

• Local purchasing power index: Measures the relative purchasing power of a typical salary in that country, compared to New York City. A lower purchasing power buys fewer goods, while a higher purchasing power buys more.
• Rent index: Compares typical rental prices in the country to New York City.
• Groceries index: Compares typical grocery prices in the country to New York City.
• Consumer price index: Compares costs of local goods and services — including restaurants, groceries, transportation and utilities — to New York City.

The report compared prices with those in New York and said of South Africa:

• Local purchasing power is 26.9% higher
• Rent is 87.5% cheaper
• Groceries are 71% cheaper
• Local goods and services are 65.8% cheaper

South Africa is the cheapest country to live or retire. It’s also the world’s largest producer of platinum, gold and chromium, which goes far to enrich the country and its economy.

This resulted in a local purchasing power that’s significantly higher than what New Yorkers face, which is the most favourable factor that puts South Africa at No. 1.

In the major city of Cape Town, for instance, monthly expenses total just under $400 / R6 000 while the average rent costs are reflected by the typical price to rent a one-bedroom in Durban of around $280 / R4300 a month.

The second cheapest country, India has a local purchasing power of 20.9% lower than New York, while rent is 95.2% cheaper, groceries are 74.4% cheaper, and local goods and services are 74.9% cheaper. Elsewhere in Africa, Zambia is sixth, Algeria (25th), Tunisia (34th), Egypt (43rd), Morocco (46th), Namibia (53rd), Kenya (79th), Ghana (108th).

Top 10 cheapest countries to live and retire

1. South Africa
2. India
3. Kosovo
4. Saudi Arabia
5. Kazakhstan
6. Zambia
7. Oman
8. Paraguay
9. Czech Republic
10. Macedonia

[source: dailymail]