Living and retiring in Thailand does not have to be expensive unlike what many people may tell you. The people who say those things have bad habits, have a luxurious lifestyle or they are just not good with money. You can live here quite cheaply, as cheap as $300 per month if you live like a Thai person, maybe even cheaper. My room is 4,100 baht per month and my electric only comes to 500 baht per month because I have no AC. I rent a motorbike for 2,000 baht per month.
Despite my limited budget I still have the ability to drive a motorbike around town, drink some beers at Walking Street on occasion, see movies I reviewed here, exercise, go to the beach, get a massage occasionally or a close shave and many other great things.
If you are smart with your money and frugal like me you can live or retire here very cheaply, then if you have the spare cash you can spend it on more luxuries whether that be a meal at a nice restaurant or a night on the town. That is all up to you.