Want to Retire in Europe? Now’s the Time

Peddicord, who lives in Panama, says she just bought a small two-bedroom apartment in Lagos, a medieval town on the coast in the Algarve region, for 101,000 euros, or about $114,000.

She says there are comparable bargains in Languedoc and Abruzzo, and for $250,000 Americans can buy a big, comfortable, renovated apartment in either of these three European regions.

But bargain-priced properties are not the only attraction for European retirement destinations, says Peddicord. There's also the availability of quality health care, reliable electricity and generally lower humidity and temperatures during the warm summer months. Public transportation is also available to travel around these regions, though she recommends a car.

On the flip side, retiring in Europe rather than in South or Central America puts more distance between retirees and their families back in the U.S. and increases the costs to visit them. There's also the issue of language. Peddicord suggests retirees moving overseas learn the local language, especially in Languedoc and Abruzzo. Algarve has a long tradition of British retirees, so most of the locals speak English, says Peddicord.

That's one of the reasons Algarve was rated No. 1 — with the only A+ rating – in the latest Retire Overseas Index.  Languedoc and Abruzzo were ranked 4 and 5, both rated A.

– Related on ThinkAdvisor:

• 15 Best Foreign Countries for Retirement: 2015
• Retire Abroad? Not So Fast
• Want to Work in Retirement? You May Be in for a Surprise