|Basilica de Voto Natcional, Quito, Ecuador|
Photo by Rinaldo Wurglitsch
In fact, the city of Cuenca, Ecuador, has a thriving American community. Imagine lovely fully-furnished apartments for $300 to $400 a month, utilities included.
You'll need the 9-I Pensioner Visa. The main requirement for the Ecuador 9-I Pensioner visa is demonstrating a stable $800 a month income (PDF from the Ecuadorian Interior Ministry). If you don't have that income, you can deposit five years worth of that income ($48,000) with their central bank or demonstrate that you already have a trust with that amount in it.
You'll find Ecuadorian Expat boards very busy and not just filled with retirees.
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Here's a description of how to retire to Cotacachi, Ecuador, on $1,000 a month.
Update: this is my second entry on this topic. I keep getting bombarded with information about this that I didn't realize it.