Retirement Index

International Living’s Global Retirement Index

Whether your retirement is fast approaching or just something you find yourself often dreaming about, you’ve probably imagined spending it in some far-flung tropical haven. But moving to a country that you know little about is a lot of hassle, right?

It’s probably not worth the time and effort, you think. Besides, all your family and friends are here. Take it from us: it’s worth it. If you look beyond your own shores you’ll find that many countries around the world offer far greater benefits and advantages for retirees than those offered at home.

One of the simplest ways to improve your retirement lifestyle is to choose the retirement destination offering you more of what you want at the best price. It’s a question of priorities. What’s important to you? Is cost of living Number One on your priority list?

Maybe for you weather is the key consideration. Are your must-haves telecommunications and infrastructure? Proximity to the States and Canada may also be a factor.

Maybe you aren’t anywhere close to retirement. Nevertheless, it’s important to think about and plan for your future. Like every phase in your life, you’ll be surprised how fast retirement creeps up on you.

That’s why, once a year, in our Global Retirement Index, we look closely, specifically, at the best opportunities worldwide for retirement living. Where will the pensioner’s dollars go furthest? Which country is the safest? Where is the health care best? We give top priority to those things that matter most to anyone planning for retirement, including programs of special benefits for retirees (tax breaks, discounts, and freebies, for example, that various governments proffer to residents, sometimes specifically to foreign residents in an effort to attract investment and retirement dollars).

We can show you the opportunities and possibilities, the winners of our top retirement countries, but it’s up to you to decide what your main priorities are before you find your ideal retirement haven. The aim of our Index is to give you a good starting guide.

How our Global Retirement Index is scored

• Real estate. Countries where real estate prices are low and the purchase of real estate is relatively easy receive the highest scores. We use our own experiences plus reports from our contributing editors and real estate contacts around the world to rate each country. Weight: 15%

• Entertainment, Recreation, and Culture. This category considers the number of newspapers per 1,000 citizens, the number of museums and cinemas per capita, the number of university students, the literacy rate, and the variety of cultural and recreational offerings. Weight: 10%

• Cost of living. This score is based on statistics from the Indexes of Living Costs Abroad, Quarter Allowances, and Hardship Differentials, published by the United States Department of State, and on data published by Business International. We also use our firsthand experiences living and traveling in these countries. The lower the score, the higher the cost of living. Weight: 20%

• Safety and stability. This measure of unrest in each country is based primarily on Interpol data and State Department statistics. It also takes into account the civil liberties and political rights granted by each government. Our own experiences and reports from expatriates living in these countries also influence the safety scores. Weight: 5%

• Health care. Considered in this category are the cost of a typical visit to a general practitioner and the cost and coverage particulars of health insurance. Weight: 20%

• Climate. Countries with temperate weather throughout the year, moderate rain fall, and little risk of natural disaster come out on top in this category. We use data representing each country as a whole instead of favoring one region over another. Weight: 5%

• Special benefits. This category considers government provisions that make moving to and living in each country easier and more affordable for foreigners. Taken into account are property rights for foreign residents, property tax rates, duty-free imports on personal belongings, currency controls, employment restrictions, voting rights, and transportation discounts for seniors. Weight: 20%

• Infrastructure. This section considers the number of cars and telephones per 1,000 residents, the length of railroad track in usable condition, the number of airports, the quality of the country’s road and highway network, and the availability of telecommunications. Weight: 5%

Listed below are the countries we believe provide the best retirement option right now (see Section Four of your Overseas Retirement Kit for an in-depth look at each of these countries). The numbers after each country name indicate where the country was placed overall in our Global Retirement Index.