Rest of the Top 5

No. 2: Panama: Last year’s No. 1, Panama, never seems to stray far from the top spot in IL’s annual Global Retirement Index, and such is the case for 2026 as it came in at No. 2 with an overall ranking average of 89.3.

“If you’re from the U.S. or Canada, you can live here for six months and give it a whirl—no visa needed. Panama has top-notch internet, uses the U.S. dollar, and is home to one of the world’s most stable international banking centers. It’s known as the Hub of the Americas, thanks to its award-winning international airport,” writes IL Panama correspondent Jessica Ramesch.

She adds that Panama’s real claim to fame is its renowned Pensionado Program. “Retiree residents in Panama get specific, government-mandated discounts that cover nearly every major aspect of life. Imagine 25% off your power bill, 50% off movie and show tickets, 20% off medical consultations, and much more,” Ramesch writes. “The basic requirement is simple: your pension must be at least $1,000 a month (or $1,250 pooled between you and your spouse). Acceptance rates are high, wait times are low (as little as three months)… and once you’re in, you’re in.”

No. 3: Costa Rica: Another perennial top five country in the IL Global Retirement Index, Costa Rica remains in the No. 3 spot in the 2026 rankings with a score of 87.6.

U.S. and Canadian citizens can stay in Costa Rica for up to 180 days visa-free, with proof of onward travel, reports IL Costa Rica correspondent Bekah Bottone. Residency is easy to obtain but takes time—typically six to 18 months. Pensionado applicants need $1,000/month in pension income.

No. 4: Portugal: After claiming the No. 2 spot in both the 2024 and 2025 indexes, Portugal lands at No. 4 in the 2026 Global Retirement Index with a score of 87.4.

No. 5: Mexico: Mexico drops one spot from No. 4 in 2025 to No. 5 in 2026 with a score of 87.3.

NEXT PAGE: Interest in Retiring Abroad on Rise