What’s the best country to retire in?

An increasing number of Americans are considering relocating abroad for retirement. For many retirees, moving outside the United States is an opportunity to get better standards of living, explore beautiful landscapes, and seek quality healthcare systems. Depending on your goal, you may want to compare various countries that offer the best opportunities to retirees.

Some of the best countries to retire in include Portugal, Spain, Australia, Italy, Mexico, Panama, and Costa Rica. Portugal is known for its golden beaches, low cost of living, and favorable tax conditions, while Spain is known for its excellent quality of life, rich cultural heritage, and laid-back lifestyle. If you want to retire abroad but in a country closer to the United States, Mexico is a good option. It is located south of the US, and it has a big community of US expatriates.

What makes a country good for retirement?

Retiring overseas requires careful planning, and you should have a checklist of things to consider when choosing the best country to retire in. Some of the important factors you can consider include:

Cost of living

When you retire on a fixed income from Social Security, state pension, or retirement annuities, you would want to keep your costs considerably low. Therefore, the costs of groceries, internet, energy, rent, etc. will determine the ideal country to relocate to in retirement.

Healthcare systems

As you age, you will continually need access to quality healthcare systems. A country with affordable healthcare systems, health insurance, and good hospitals is a plus for retirees.

Climate

Many retirees want to relocate overseas to escape the cold winters. Countries with warm tropical climates and sunny days all year round are attractive to retirees. Good weather is ideal for retirees who desire a more active lifestyle.

Outdoor activities

Retirement offers an opportunity to enjoy outdoor activities like hiking, fishing, biking, skating, swimming, etc. Countries with beautiful landscapes like beaches and mountains are attractive to retirees who want to stay active.

Culture

If you enjoy art, music, theater, and different cultures, you may want to move to countries with rich cultural heritage. Some countries are popular for their historical heritage, wine tasting, tribal histories, etc., which makes them popular among retirees.

8 Best countries to retire in around the world

Here are the best countries to retire in:

Portugal

Portugal is one of the best countries to retire in Europe owing to its relatively low cost of living, cheap housing, and favorable laws for expatriates, hence offering the best value for pensioners. It has a beautiful climate and landscapes, and plenty of social amenities.

Americans will find it easy to integrate and fit into the local community since English is taught in schools, and most residents can easily communicate in English. Portugal is considered a foodie's paradise, and you will be able to sample different low-cost cuisines from a variety of restaurants located on various islands spread across the country.

Portugal has one of the lowest cost of living in Europe. One person's estimated monthly budget averages about $555.85, excluding rent, and it is 45.94% lower than the cost of living in the United States.

Spain

Spain's strategic location makes it highly connected to the world, and it has one of the highest population of expatriates. It has pleasant warm weather, welcoming culture, good food, good infrastructure, and a laid-back lifestyle, which makes it a comfortable place for retirees.

If you are looking to retire in a country with affordable and quality healthcare services, Spain is known for medical tourism. Expats can access free or reduced medical treatment costs at the country’s public and private healthcare systems.

Australia

Australia is known for its multicultural society, excellent living standards, and low crime rates, which makes it a great place to retire. Australia has friendly weather and scenic landscapes, and you can enjoy plenty of sunshine all year round. However, if you reside in the north, you may encounter mild winters.

While the higher cost of living in big cities is a deterrent for cost-conscious expatriates, Australia offers a better quality of life. If you want to lower your cost of living, you may consider living in smaller cities and rural towns to get fresh organic foods direct from the farm.

American retirees have two visa options to retire in Australia i.e. a standard retirement visa and a permanent retirement visa. The standard retirement visa is a temporary visa, and you need to prove that you have enough money and assets to support yourself, you are in great health, and have good character. On the other hand, a permanent retirement has a more rigorous procedure, and you must prove that you have assets of a certain value.

Italy

Italy is a popular destination for retiring Americans, and every region of the country offers a unique experience for every retiree. Apart from its historical and cultural attractions, Italy is known for its excellent weather, serene beaches, beautiful landscapes, as well as delicious Italian cuisine and wine.

Italy has one of the best healthcare systems in the world. You can get a permanent resident visa after only six months of living in Italy, which allows you to enjoy the public healthcare system.

France

If you want to maintain a slower pace of life in retirement, France is a good country to retire in. It is famous for its art, theatre, museums, and rich culture, and this means you will never get tired of exploring what the country has to offer.

If you are keen on exploring other cultures, you won't fail to notice the French cultural stance on fine living. The country is known for its fine cuisines, desserts, wine, and cheese, and the people attach greater significance to sharing a gourmet meal that lasts for as long as the wine flows.

While the French way of life may appear out of reach for budget-conscious retirees, the cost of living is 21.03% lower than in the United States. One person can live comfortably with a budget of about $867.41, excluding rent.

Mexico

If you want to retire outside the United States but still live close enough to visit your family and friends, Mexico is a good country to retire in. It borders the United States to the south, and it has the highest ratings for expatriates due to its amenities, entertainment, and ease of establishing residency. It has warm weather, a long coastline, and a vibrant culture. 

Wherever you live in Mexico, you will find a big expat community, with Americans and Canadians topping the list of expats. You will find plenty of opportunities for socializing, and you can interact with local communities through the numerous free concerts, street dance competitions, and other community events.

While most states in Mexico are retiree-friendly, you may need to take caution when visiting select states. The US State Department regularly issues travel advisories to states with high crimes, and you should take extra caution when visiting high-risk states.

Panama

Panama is one of the cheapest countries to retire in, and residents enjoy quality healthcare systems, low cost of living, and low-cost housing options. Apart from the majestic mountains and miles of coastline, the host community has a reputation for being welcoming to visitors.

Panama has a considerably low cost of living, and almost everything is cheaper than in the United States, including groceries, restaurant meals, and rent. On average, the cost of living in Panama is 31% lower than in the US, while the cost of housing is 58% lower than in the United States.

As an expat, you can get a retirement visa if you have a pension income of at least $1,000 per month. This visa gives you various benefits including tax exemption on imported goods, and discounts on various services like entertainment, airfare, and hotels.

Costa Rica

Costa Rica is a good place to retire for retirees craving a relaxed and peaceful retirement. This Central American country touches the Pacific Ocean on the west coast, and the Caribbean Sea on the east, allowing retires to enjoy picturesque beaches and a warm tropical climate.

If you want to retire on a budget, Costa Rica is a good option. The overall cost of living and housing is lower by 38% and 72% respectively than in the United States. You can also find cheap but decent homes, and you will only pay a fraction of the property rates you would pay in the US.

You may be eligible for a temporary visa, which requires a monthly income of $1,000- this income must be transferred to a local bank to cater for your expenses. If you don't have a monthly pension, you may enroll in the Rentista program, which requires a monthly income of at least $2,500 or $60,000 per year, for a minimum of two years.