The World’s Top 10 Retirement Havens

They’re cheap, yes, but these overseas spots offer more than that.

1. Ecuador

It might not seem the world’s top retirement haven, but the editors at International Living say the Republic of Ecuador is the best place in the world to retire to. The cost of living is low and real estate is cheap.
According to Dan Prescher, the special projects editor of International Living, and who — for the record — resides in Ecuador, the country affords him the chance to live on the fraction of the cost of living in the U.S. without sacrificing any quality of life. “A couple watching their spending here can live well on $800 a month,” International Living said. “And even if you push the boat out you’ll find it hard to spend more than $1,500.”
But that’s not all that International Living examined for its 2012 Global Retirement Index. The editors looked at eight factors, assessing everything from “the price of bread to how easy it is to make friends or stay in touch with family” before saying that Ecuador has what matters most to Americans who might be considering an overseas retirement spot.
And don’t worry about integration. The International Living editors say you can get by speaking English in parts of Ecuador. Plus, there are some expat communities already established. Retirement benefits, including 50% off transportation, utility bills and tickets for cultural and sporting events, are generous. And health care is inexpensive as well: All expats are able to participate in the Ecuador Social Security medical program for a premium of $57 a month.

2. Panama.

Panama City

Panama has the best retiree benefits according to International Living’s research. The southern-most country of Central American country has organized program of discounts and perks called the “pensionado.” The program is open to foreigners and there’s no minimum age requirement. You get 20% off any professional services used in Panama; 50% off for movies, theaters and sporting events; a 30% discount on public transport, 25% off the price of food eaten in a sit down restaurant; 15% off in fast food joints, 15% off in hospitals and private clinics, 25% domestic flights on COPA, and the list goes on, said International Living. Panama City is also among the most exciting retirement havens. Plus, as with most countries on this list, the cost of living is cheap in Panama: You need only $1,500 to $2,000 a month to fund your living expenses in a near-perfect climate. You can buy a beach-front condo for $180,000, or find a rental for $450.
To prepare its rankings International Living examined such factors as real estate, special retirement benefits, the cost of living, the ease of integration, entertainment and amenities, health care, retirement infrastructure and climate as part of its research. Plus, International Living editors relied on the input of expats in developing its list of the top 19 retirement havens. “It’s a subjective measure,” said Prescher.

3. Mexico.
Mexico also offers what International Living describes as best-value real estate. You can find a nice home for $167,000 in places like Tulum, on the country’s Caribbean coast. You can get by speaking English in many parts of the country. And it’s plenty easy to integrate into Mexico. For instance, there are more than 80 interest groups around Lake Chapala, home to Mexico’s biggest expat community, International Living said. Another benefit: Unlike many other retirement havens, you could actually drive to Mexico. And the weather in Mexico, especially October to April, is hard to beat. Though subjective and qualitative, Prescher was quick to note that International Living’s 2012 Global Retirement Index doesn’t just identify countries with the lowest cost of living. Rather, it’s a reflection of all the categories. Read the scores and how the 2012 Retirement Index works at this website.Read International Living’s article on the “World’s Top Retirement Havens in 2012” at this website.

4. Malaysia.

Kuala Lumpur

In Malaysia, you can live quite comfortably. For instance, you can rent a sea-view apartment on Penang Island for $1,000 a month. Plus, Malaysia has a unique retirement benefit called the My Second Home program, which is open to all foreigners who want to retire to one of Asia’s best-value destinations, International Living said. And while it might not seem so, the editors said Malaysia is also an easy place in which to integrate. You’ll find plenty of locals who want to practice their English-speaking skills. And you can catch a feature movie — in English — for $4. And there’s a good infrastructure in place for retirees. There’s Internet access, quality roads and cell phone coverage, among other must-haves for ex-pats. Prescher had this advice for retirees and would-be retirees who want to retire abroad. Make sure you spend as much time on the ground in the country to which you plan to retire. Vacationing in a country is much different from living there. When you vacation somewhere, you never really have to open a bank account or order phone service. Instead, he suggests renting a place in your retirement haven.

5. Colombia.
If you’re looking for a bit of excitement in your life, consider Medellin in Colombia. It is, according to International Living, among the more exciting retirement havens. That city and country offer retirees and would-be retirees low property prices and perfect climate. “I’ve never seen anything like Medellín, Colombia,” wrote Lee Harrison in International Living. “It has everything I want in a second home location, with none of the drawbacks that come with many Latin American cities.” True, criminal groups seem a threat, but in its favor, the United Nations did grant the country a non-permanent seat on the UN Security Council for 2011-12 term. And, a global poll just rated Colombia as the most hopeful country in Latin America, and seventh in the world. “Colombians are a people defined by their ability to hope for more, despite suffering from an array of socioeconomic problems,” according to the 2012 Global Barometer of Hope and Despair, a global study of countrywide levels of happiness and hope.

6. New Zealand.
Language, obviously enough, is the biggest factor in how easily you can make friends and build up a new network in your overseas home, according to International Living. That means English-speaking countries like Belize, Ireland and New Zealand do well. International Living has also said that New Zealand is among the healthiest places to live in the world. It affords expats a pollution-free environment and awesome landscapes. Plus, winters in the U.S. are summers in New Zealand so you could consider retiring there part time.

7. Nicaragua.
Like many countries in Central America, the cost of living is what makes Nicaragua a top haven for retirees. According to International Living, can spend about $1,200 a month and live quite nicely. For instance, regular fare at typical restaurants runs about half that and a “local” meal is $2 to $3. The local beers, which are good, run from 75 cents to $1.50. Nicaragua is also an easy place in which to integrate. There’s an expat community in Granada, Nicaragua, and “you’ll find making new friends and establishing yourself in the community a lot easier than you think,” said International Living.
Nicaragua can also be an exciting place to live as well, especially for surfers. Some of the best waves can be found in Nicaragua and Costa Rica’s Pacific Coasts, International Living said.
As for health care, International Living said you’ll find “first-class hospitals and clinics where care is second-to-none, and the staff are often U.S.-trained in each of its top 10 havens. But while the care is similar to the U.S. in many places, it’s a lot cheaper than back home.” For instance, a visit to the doctor in Nicaragua runs about $15.

8. Spain.

Park Guell, Barcelona, Spain

Spain is the only European country to be listed among International Living’s top 10 retirement havens. The reason? That country is among the more exciting places to which to retire. For foodies in love with culture, Spain and Italy offer a menu of delights unmatched anywhere else, even the smallest villages ooze history and art is everywhere,” said International Living. “You’ll find delicious three-course meals for less than $20 in both countries, too.” Of course, with Spain, you’ll also find a country struggling with debt. But what the heck, you can at least eat drink and be merry while the European crisis unfolds.

9. Thailand.

As with Malaysia, it can be fairly inexpensive to live in Thailand. According to International Living, you can live comfortably for less than $1,000 a month on a powder-sand beach in Thailand. In fact, it’s likely you could find “really nice, liveable place just about anywhere in the country” for about $500 a month. As with Malaysia, you’ll find plenty of locals happy to practice their English with you; so integration shouldn’t be too much of an issue. And, for excitement, what could top Bangkok? “If variety is the spice of retired life, than Paris, Panama City, the expat communities of Mexico, Medellin in Colombia, and Bangkok, Thailand, should be top of your list,” International Living researchers said.

10. Honduras.

Honduras, which is just north of Nicaragua in Central America, is the world’s 10th best place to retire, according to International Living. Its appeal? It’s cheap to live there and the surfing is great. One expat, for instance, is spending just “$1,400 a month to live yards from a white-sand beach on the island of Roatan.” Plus, it’s only three-hour flight from the U.S. If you love the sea, then Roatan is among the places for you. It’s got scuba diving, fishing, sailing, kayaking, snorkeling some of the best surfing in Central America. Prescher’s last bit of advice. Plan on there being some culture shock when you retire abroad. “If you are new to this, don’t expect to go and have everything be the same; It’s not,” he said. It’s not the U.S. You have to go with an open mind and tolerance for change, and different way of doing things. Living abroad is not for everybody, there is a different set of challenges.”
So, for people who want things to be the same as back home, Prescher had this recommendation. Don’t retire abroad. “For those people who want the same, back home is best,” he said.