Dear International Living Reader,

"On average, most Americans have $98,000 in savings," said the caller. "What will they live on when they retire? Even if they make 10% on that a year, that’s only $9,800. Figure that their house is paid for…but they still have property taxes, utilities, auto expenses…not to mention medical bills."

We get calls of this kind every day. Baby boomers are preparing for the eventuality of living on their retirement incomes–if they have retirement incomes, that is. Like this caller mentioned, social security–combined with a small amount from other sources–just won’t cut it for most boomers used to living comfortably on fat salaries.

The caller plans to sell her home in Dallas, and use a third (or less) of the proceeds to buy a home outside the U.S. She’ll use the remaining two-thirds of the proceeds to fund her retirement. She wanted to know about the cost of living here in Mexico. About safety and ease of living, health care, prescription costs (her husband has diabetes). She wondered if there would be activities to keep her busy. As she talked, it occurred to me that some of the project developers we’ve been speaking with here in Mexico have been thinking about all the same issues.

In San Miguel de Allende, where we live, several new projects are being built with baby boomers in mind. (This is happening in other areas of Mexico, too, by the way.) Some developers call it "new urbanism," others call it "retirement community." Whatever the name…make no bones about it…these communities are being developed with an aging population in mind.

Here are some examples:

Within the proper city limits of San Miguel, Villas de Allende is a gated community with swimming pools and a clubhouse. Prices start at $89,000 for a one-bedroom unit. It’s a 20-minute walk from here to the town’s central plaza. A management company will be onsite to handle maintenance and other issues.

Taking the concept of community living up a notch are three projects in the "Golden Corridor"–along the road between San Miguel and Dolores Hidalgo.

We’ve told you about one of them before. Sonterra is a community of 85 freestanding villas, situated on 13 acres of pristine highlands (with hot thermal waters), about 12 minutes from downtown San Miguel. Here, elegant colonial-style design is combined with the latest techniques in modern construction methods that meet ADA (Americans with Disabilities Act) and U.S. Green Building Program standards. The gated, secure community will be free of automobiles–transportation within the development is by electric golf carts, bikes, and soft walking paths.

The two- and three-bedroom villas come equipped with high-speed Internet lines, satellite phones, DDS Sky TV, American appliances, under-floor heating system, and more. There will be a spa, pool, clubhouse, shopping facilities, and several community gathering areas. A nurse will be on call, as will 24-hour concierge service. A shuttle will provide transportation to and from San Miguel. The turnkey construction price is $110 per square foot, or $230,127 for a two-bedroom, two-bath villa of more than 2,000 square feet.

Across from Sonterra, Rancho Los Labradores offers 50 large home sites surrounding an oasis area of private lakes and water cascades. This, too, is a complete neighborhood-style project with a colonial-style clubhouse, day spa, heated pool, fitness center, horse stables, tennis court, 180-seat theater, ecumenical chapel, and commercial area. Lots and home construction are priced separately, with home sites priced from $52,000, and five models of homes priced from $190,000 for a 2,175-square foot two-bedroom, two-and-a-half-bath house to $255,000 for a 3,037-square-foot, three-bedroom, three-bath home. In a future phase, the developers are planning an assisted living center.

A bit further down the highway…closer to Dolores Hidalgo…Villas San Gabriel is another community designed with baby boomers in mind. This 20-acre project offers a spa, medical center, restaurant, and community center, a putting green, and more. Homes here average 1,400 square feet and range in price from $125,000 to $165,000.

Writing this…I‘m reminded of the communes of the 1960s and ’70s. The concept is the same–people living together in fellowship and harmony with nature. Sometimes, what goes around comes around. We may need more creature comforts now than we did back then…but we still want to be part of an active and intriguing community. That’s exactly what you’ll find here in Mexico.

Suzan Haskins
For International Living in Mexico