For those with retirement around the corner or who are already retired, picking a place to retire could be a key element into how fulfilling, meaning financially comfortable, retirement will be. With many early boomers' retirement portfolios punished by the financial crisis and low interest rates, the choice of where to live is even more critical.
International Living magazine released the results of its most recent Global Retirement Index last week, with some familiar countries on the list and some new ones. The magazine bases it index on data gathered from editors, correspondents and experts living in the countries that it ranks.
International Living scored 24 countries in eight categories: real estate, special benefits, cost of living, ease of integration for foreigners, entertainment and amenities, health care, retirement infrastructure and climate.
The "special benefits" International Living considered include government provisions that make it easy for Americans to move to and live in each country. Things like discounts on health care, airfares, utilities, duty fees on imported goods, and property rights and taxes were considered. For the "ease of integration" category, International Living considered how widely English is spoken in the country, the friendliness of locals to foreign residents and the size of the current expat community.
Due to its proximity and similar time zones to the United States, Central and South America are obvious choices for retiree destinations, and several of the countries in the top 15 are from those regions.
(Check out Top 10 Best Foreign Countries for Retirement: 2013 on ThinkAdvisor.)
Of the 24 countries in the index, Cambodia was rated the lowest, with a score of 73.2. Although the country earned a score of 100 in cost of living, it rated a 57 and 58 in special benefits and retirement infrastructure, respectively.
15. Portugal: 82.4
- Real Estate: 85
- Special Benefits: 73
- Cost of Living: 85
- Ease of Integration: 73
- Entertainment and Amenities: 70
- Health: 93
- Retirement Infrastructure: 95
- Climate: 85
14. Italy: 82.5
- Real Estate: 73
- Special Benefits: 80
- Cost of Living: 70
- Ease of Integration: 79
- Entertainment and Amenities: 98
- Health: 89
- Retirement Infrastructure: 89
- Climate: 83
13. Nicaragua: 82.6
- Real Estate: 94
- Special Benefits: 68
- Cost of Living: 92
- Ease of Integration: 92
- Entertainment and Amenities: 77
- Health: 87
- Retirement Infrastructure: 69
- Climate: 83
12. (tie) New Zealand: 83
- Real Estate: 71
- Special Benefits: 77
- Cost of Living: 77
- Ease of Integration: 92
- Entertainment and Amenities: 88
- Health: 86
- Retirement Infrastructure: 86
- Climate: 87
12. (tie) Ireland: 83
- Real Estate: 85
- Special Benefits: 76
- Cost of Living: 72
- Ease of Integration: 97
- Entertainment and Amenities: 98
- Health: 89
- Retirement Infrastructure: 85
- Climate: 61
10. Thailand: 83.5
- Real Estate: 83
- Special Benefits: 62
- Cost of Living: 88
- Ease of Integration: 89
- Entertainment and Amenities: 96
- Health: 90
- Retirement Infrastructure: 78
- Climate: 81
International Living notes that retirees have several choices when it comes to where they want to live in Thailand, depending on what kind of lifestyle they want. The capital, Bangkok, is a major city, while the northern part of the country tends to be more peaceful and less expensive, with proximity to the country's beaches a highlight of the south.
Wherever they decide to settle down, rent can be as low as $500 a month, and a doctor's exam in a modern hospital will cost less than $40.
Image courtesy Associated Press
9. Uruguay: 83.7
- Real Estate: 79
- Special Benefits: 76
- Cost of Living: 64
- Ease of Integration: 87
- Entertainment and Amenities: 94
- Health: 96
- Retirement Infrastructure: 82
- Climate: 92
Uruguay is the second smallest country in South America, and boasts extensive infrastructure and ease of access, according to International Living. It also has an established expat community.
Image courtesy Associated Press
8. Malta: 84.1
- Real Estate: 85
- Special Benefits: 84
- Cost of Living: 83
- Ease of Integration: 100
- Entertainment and Amenities: 68
- Health: 88
- Retirement Infrastructure: 77
- Climate: 88
Malta, a tiny archipelago about 60 miles south of Sicily, is just over 120 square miles. Despite this, it has a modern airport on the main island of Malta that connects the country with Rome, about an hour away by plane. It has been a member of the European Union since 2004 and has been using the euro since 2008.
English is one of the official languages of Malta, and according to International Living, there are many hints to its 150-year history as a British colony, from red phone booths to driving on the left side of the road.
Image courtesy Associated Press
7. Mexico: 84.2
6. Colombia: 84.2
5. Spain: 85.8
4. Costa Rica: 86.8
3. Malaysia: 88.5
2. Ecuador: 91.1
