Familiar expat favorite reclaims top spot in International Living’s new rankings of places where retirement dollars go further
If it’s the start of a new year, it’s time to reveal the new “Best Place in the World” for retirement according to International Living’s 33rd Annual Global Retirement Index, released today.
The key aim of the Index is to help retirees find locations where their dollar goes further—where they can get the best bang for their buck in terms of real estate, cost of living, and overall quality of life. It examines the top safe, good-value destinations beyond the U.S. or Canada, comparing, contrasting, ranking, and rating them in seven key categories to select countries across the globe where a retired couple can live a comfortable, care-free life on as little as $2,000 a month.
“By design, our annual Global Retirement Index rankings are largely subjective, but we build it from a base of facts and figures,” says Jennifer Stevens, International Living Executive Editor. “Our editors rely on the informed judgment and real-world experience of the magazine’s contributors and correspondents in the field as well as additional in-country expats—people who have made the move and have first-hand experience. They provide detailed data and insights about the places where they live—places we feel confident recommending to folks interested in retiring abroad.”
So what country claimed the top spot for 2024?
Costa Rica
For the third time, the world’s No. 1 retirement destination is Costa Rica, a perennial top-five country in IL’s rankings (Costa Rica ranked fifth in 2023 and second in 2022) because it is a safe, good-value, beautiful country that offers a wide variety of climates and lifestyles amid what can only be described as a natural wonderland.
“Only in Costa Rica can you be at the top of a volcano with big views, an hour later in the cloud forest, an hour later in a pineapple plantation, an hour later on the beach, an hour later by a mountain stream,” says International Living contributor John Michael Arthur. “Costa Rica’s been an expat hot spot for four decades. It’s going strong…and there’s a reason for that.”
“Costa Rica’s been an expat hot spot for four decades. It’s going strong…and there’s a reason for that.”
Tens of thousands of U.S. and Canadian expats already live in Costa Rica full- or part-time. They have been flocking to Costa Rica for over 30 years, attracted by the tropical climate; low cost of living; top-notch, affordable medical care; bargain real estate; and natural beauty.
And, just a few months ago, the Costa Rican government announced an extension of the maximum stay period for foreign tourists visiting on a tourist visa, from 90 days to 180 days.
“The country’s nationalized healthcare system ranks alongside the best in the world. Calculated as a percentage of declared income, for most participating expats in Costa Rica, comprehensive coverage costs less than $100 a month,” says Seán Keenan, International Living’s Lifestyle Editor. “You don’t even need to be a passport-toting Costa Rican citizen; it comes as standard with long-term residency. If you’re retired, with a monthly income of $1,000 or more, you’ve already fulfilled the primary conditions to qualify.”
Excellent weather, proximity to the U.S. (direct flights of less than three hours from Miami or 3.5 hours from Houston into two international airports in Costa Rica), the most stable democracy in Latin America, reliable high-speed Internet, paying zero income taxes on foreign-earned income, low property taxes, and a high-quality healthcare are just a few of the reasons why about 70,000 Americans—mostly retirees—live in Costa Rica.
The IL Index says a retired couple could live very comfortably on $2,000 a month in Costa Rica. A single person can live on between $1,600 and $2,000 a month.
Costa Rica achieved a total score of 83.57 to lead the index, thanks to high scores in the affinity rating (96), visas/benefits (94) and healthcare (89) categories.
Next Page: Second Place Country
Portugal
Leader of last year’s Index, and still a fan favorite among International Living subscribers, Portugal slips by a hair to second place in 2024.
Two main factors account for that downgrade: an increase in the cost of housing (mostly in Lisbon and Porto, the two largest cities) and the uncertainty surrounding long-term visa categories.
That aside, sleepy Old World Portugal is still a wonderful expat location. This is a country of centuries-old vineyards, cobblestone streets that lead to farmers markets, and cafes where you can nurse a glass of wine for an afternoon. It’s European-style opulence on a Central American budget.
IL contributor Terry Coles says that she and her husband enjoy the low costs of Portugal. “We can enjoy a meal at a variety of restaurants for $11.50 or less, including drinks. We have private health insurance for $265 a month for the two of us. To keep fit, we joined a large gym that comes with an assortment of classes and ongoing dietary and fitness counseling for just $66 a month for two. This is half of what we used to pay in the U.S.”
Portugal scored highest in the categories of Development/Governance (93) and Healthcare (92) and had an overall rating of 83.28 to finish just below Costa Rica.
Next Page: Third Place Country
Mexico
Retirement options blossom just south of the Rio Grande. Mexico offers plenty of advantages, but the most obvious is that it’s in North America.
Having the grandkids come to stay, keeping in touch with old friends—it’s barely harder than if you’d stayed where you were. Heck, you can even drive there from the U.S.
English is widely spoken in expat centers and vacation destinations, and U.S. foods, products, sports, and movies are popular and widely available.
Whatever your tastes, you’ll find something to entertain you in Mexico. As veteran IL contributor Jason Holland puts it, “On the coasts, you can have fun in the sun 365 days a year.
Head inland and you have a different experience—the focus is on the arts of all kinds, with music festivals, art galleries, theater, independent cinema, and more.”
A typical monthly budget for two people living a comfortable, middle-class lifestyle will probably not exceed $2,000. More often than not, it’s certainly possible to get by spending much less than that.
Real estate costs (and property taxes) are also less in Mexico than the States, and foreigners can legally purchase property.
Modern condominiums and houses in move-in condition start in the low $100,000s even in some popular coastal areas. For around $200,000, you’ll find an abundance of luxury homes in the Riviera Maya and in other prime locations throughout the country.
Mexico scored highest in the categories of Affinity Rating (88) and Visas/Benefits (89) with an overall rating of 83.
Next Page: Rest of the Top 10
Rounding out the Top 10
Panama, which earned the top spot back in 2022, finished fourth in the 2024 ranking with an overall score of 82.85 thanks to high ratings in Visas/Benefits (98), Affinity Rating (86) and Development/Governance (86).
Spain was fifth at 79.71, led by Affinity Rating (89), Development/Governance (88) and Healthcare (88).
Ecuador was sixth at 77.42, led by a score of 91 in Cost of Living but dinged by a 56 score in Development/Governance.
Greece was seventh with a score of 77, led by an 86 Affinity Rating and a 82 Healthcare rating.
Malaysia was eighth at 75.71 led by a 96 in Cost of Living but just a 56 for Visas/Benefits.
France was ninth at 74.85 thanks to high scores for Development/Governance (88) and Healthcare (86), but had a 59 for Cost of Living.
Colombia was 10th at 74.71 thanks to a top score of 98 in Cost of Living and an 87 for climate.
See the complete International Living 33rd Annual Global Retirement Index.
SEE ALSO:
- Cruising Through Retirement at a Fixed Price for Life
- One State Sweeps Top 5 in U.S. News 2024 ‘Best Places to Retire’ Rankings
- 5 Surprises Top Bankrate’s Best States for Retirement 2023