Every January, International Living releases its annual Global Retirement Index, listing “outstanding destinations where you can live a healthier and happier life, spend a lot less money, and get a whole lot more.”
The Global Retirement Index ranks and scores 24 countries in the index across 10 categories: housing, benefits and discounts, visas and residence, cost of living, fitting in and entertainment, healthcare, development, climate, governance and opportunity.
While the index is rigorous, the staff at International Living readily admit that what makes a perfect retirement spot is ultimately subjective, dependent on the priorities and preferences of the retirees in question.
Nevertheless, it is still interesting to see which countries pop up toward the top of their rankings and why, whether actually retiring abroad is realistic or more of a pipe dream (gotta be around to babysit those grandchildren, after all!).
But with so many near-retirement Americans behind the eight-ball when it comes to their retirement savings, the idea of living well in retirement abroad or just scraping by in the states might be enough to tip them toward becoming an expat.
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Click through to see a rundown of IL’s top 10, along with their score and some brief excerpts explaining why each country earned its ranking. For more detail, see International Living’s complete 2020 rankings.
Vietnam (76 points)
“Vietnam’s exceptionally low cost of living is a major incentive for living here. Wherever you are in Vietnam, you’ll find that the cost of living is low. Even in the most expensive cities—Ho Chi Minh City and Hanoi—two people can live well for less than $1,500 per month. If you’re on a limited budget, you’ll find the entire country affordable; if you have a larger budget, you’ll be living a life of luxury for a fraction of what you would pay in the West… Vietnam is an easy place to live. English is widely spoken, and the local people are exceptionally friendly and welcoming.”
France (76.4)
“France has all the ingredients we look for at International Living: good food, good wine, haute couture, a good climate, unspoiled countryside, glittering culture, excellent healthcare, colorful traditions and history, and, as a bonus, the glamour and sophistication of Paris—arguably the world’s most bewitching capital. And France is more affordable than you may think… A couple can live here for anywhere from $2,083 to $2,483 a month—and that includes rent and healthcare.”
Spain (76.8)
“Spain is one of Europeans’ favorite beach destinations. It offers first world, Western European living standards, so there’s no question of having to “give up” anything in living here. In fact, you’ll gain a lot… There are plenty of beach areas with large, English-speaking expat communities… With one of the lowest costs of living in Western Europe, a couple can live comfortably in many parts of the country for around $2,500 a month.”
Malaysia (81.9)
“Idyllic beaches, islands that seduce the senses, and some of the most pristine ancient rainforests in Southeast Asia—this is Malaysia… The unofficial first language of the country is English, so you don’t have to learn another language here if you don’t want to… In Penang, a couple can live comfortably on $1,800 a month, including rent.”
Ecuador (82)
“Quite simply, some of the best weather on the planet can be found in Ecuador. The unique combination of its position on the equator, the cooling sea breezes from the Humboldt Current, the Andes mountain range, and the Amazon basin have conspired to create a variety of climates. There are beaches that are warm year-round but rarely muggy (and are too close to the equator to ever have hurricanes or tropical storms)… You can own a home on a Pacific Coast beach or a condo with great views in the Andes for less than $150,000. Rentals are plentiful and affordable too with a two-bedroom, two-bathroom condo available in downtown Cuenca for $500. A couple can live here for anywhere from $1,650 to $1,825 a month, depending on location and lifestyle… Ecuador is a little unique, in that there are not just a couple of expat communities. There are over a dozen places spread all across the country where you can find North Americans enjoying the laidback lifestyle.”
Colombia (83.4)
“The dark days of Colombia’s past are gone, and it has been transformed into a country that is thriving. One of the best things about the country are the warm, welcoming Colombian people… Getting a retirement visa to live in Colombia is also quite easy. All you need to do is prove at least $750 annual income from Social Security or $2,500 annual income from a private pension or 401k and you are eligible to obtain a visa that is good for three years. Once they arrive, retirees are discovering they can stretch their retirement dollars… A couple can live here for anywhere from $1,030 to $2,720 a month, depending on location, lifestyle, and healthcare needs… As we all reach retirement age, access to high quality but affordable healthcare becomes a front-and-center issue. The World Health Organization ranks Colombia’s health system at No. 22 in the world, far better than Canada at 30 and the U.S. at 37.”
Mexico (83.8)
“The cost of living is notoriously low. In fact, there are many places in the country where a wonderful life can be had for the price of one monthly Social Security check and this improves even more when you figure the normally favorable exchange rate from dollars to pesos. (A couple can live here for anywhere from $1,500 to $3,000 a month, depending on location—and that includes rent and healthcare.)”
Costa Rica (85.3)
Costa Rica attracts visitors with its tropical climate; low cost of living; top-notch, affordable medical care; bargain real estate; and natural beauty… The country has a stable democracy and a peace-loving culture. They abolished their army in 1948 and pledged that budget to education and healthcare. Often called the “Switzerland of Central America” it is known for its safety, neutrality, and good banking system—especially compared to many other countries in the region… Once you have acquired your residency, you pay between 7% and 11% or your reported monthly income, and the socialized medicine program is available to you… A couple can live a comfortable, but not necessarily extravagant life here for around $2,000 a month.”
Panama (85.8)
“Modern, convenient, and close to the U.S.—not to mention sunny, warm, and welcoming. Panama is warm and tropical, but completely outside the hurricane belt. The currency is the U.S. dollar. The tax burden is low. And there’s a large English-speaking population—including a cadre of excellent doctors… The capital of Panama, Panama City, is a cosmopolitan city where you can rent an ocean-view condo for as little as $1,500 a month… One area where Panama excels for retirees is the benefits and discounts it offers. The country’s famed Pensionado Program [open to expats] is one of the best retiree programs in the world today and it’s open to everyone… Like 25% off airline tickets, 25% off your monthly energy bills, and up to 50% off hotel stays… When women reach the age of 55 and men 60, they can automatically start using the benefits that the Pensionado provides. By showing your residency card you are entitled to discounts.”
Portugal (86)
“It’s hardly surprising that Portugal topped the 2020 Annual Global Retirement Index. From north to south, from the Atlantic west to the Spanish east, this country’s gracious people, bustling capital, brilliant sun, tantalizing beaches, and verdant valleys are more appealing than ever to a growing number of people… Steeped in history and culture, it has a pleasant climate year-round in most regions, as well as an extremely affordable cost of living… Portugal is the second least expensive country in Europe, after Bulgaria… You can live a comfortable, although not extravagant, lifestyle for about $2,500 a month. If you choose to live in Porto in the north, the country’s capital of Lisbon, or in the expat beach havens of Cascais or the Algarve, you probably want to bump that up to $3,000.”
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Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
