Do you dream of retiring somewhere your money stretches further, maybe with a little more sunshine, adventure, and culture in the mix?
It might sound like a far-off fantasy, but it’s actually more doable than you’d think. You just gotta know where to look.
That’s where the Annual Global Retirement Index comes in. For over three decades, it’s been the go-to guide for finding the best places to retire overseas—based on insights from people who actually live there.
Let’s take a closer look at the top countries to retire in for 2025, according to this trusted index.
Contents
- 1 How the Index Works
- 2 #1. Panama: The Modern Marvel
- 3 #2. Portugal: The European Dream
- 4 #3. Costa Rica: The “Pura Vida” Paradise
- 5 #4. Mexico: The Close-to-Home Favorite
- 6 #5. France: The Gourmet Lifestyle
- 7 #6. Spain: Sunshine, Safety, and Culture
- 8 #7. Malaysia: The Exotic and Affordable Gem
- 9 More Top Choices for Your Retirement
- 10 Your Perfect Retirement Plan
How the Index Works
The Annual Global Retirement Index is a comprehensive tool. It is created by International Living and relies on a network of correspondents living in the locations they cover.
They provide on-the-ground insights you can’t find anywhere else. The index ranks countries across seven key categories:
- Housing: The cost and ease of buying or renting.
- Visas & Benefits: How simple it is to get residency and what perks retirees receive.
- Cost of Living: A detailed look at day-to-day expenses.
- Affinity Rating: How easy it is to make friends and fit in.
- Healthcare: The quality and affordability of medical care.
- Development & Governance: Infrastructure, stability, and banking.
- Climate: The variety and appeal of the weather.
This practical approach helps you compare your top options. Now, let’s see which countries made the top of the list.
#1. Panama: The Modern Marvel
Panama has once again claimed the top spot. It surprises visitors with its modern skyline and first-world amenities.
The country uses the U.S. dollar, which simplifies finances for American retirees. It offers cosmopolitan city life, quiet mountain towns, and relaxed beach living.
A couple can live a luxurious life in Panama for around $2,900 a month. In many areas, a comfortable lifestyle is possible on just $2,400 a month.
Panama’s healthcare is another major draw. Top hospitals in Panama City are affiliated with U.S. institutions like Johns Hopkins. Many doctors are U.S.-trained and speak English.
The famous Pensionado visa is one of the best retiree programs in the world. You only need a lifetime pension of $1,000 a month to qualify. This visa grants permanent residency and amazing discounts.
You also get 25% off restaurant meals, 50% off movie tickets, and 20% off medical consultations! No wonder Panama is one of the best countries to retire in 2025.
#2. Portugal: The European Dream
Portugal consistently ranks high for its safety, culture, and sunny climate. It offers a classic European lifestyle at a fraction of the cost.
You can enjoy historic cities, golden beaches, and world-class food. It is one of the safest countries in the world, making it a peaceful place to settle down.
A couple can live comfortably here for $2,500 to $3,000 a month. This budget allows for a great quality of life, even in popular areas like the Algarve.
Portugal’s healthcare system is excellent, with both public and private options available to expats.
The D7 visa is a popular path to residency for retirees. It requires proof of passive income, such as a pension or investments.
After five years of residency, you can even apply for citizenship. The welcoming culture and large expat community make it easy to feel at home.
Also Read: 10 Places To Retire For Americans in Portugal So Perfect, You’ll Wonder Why You Didn’t Move Sooner
#3. Costa Rica: The “Pura Vida” Paradise
Costa Rica is famous for its stunning biodiversity and “Pura Vida” (pure life) philosophy.
This is a place for nature lovers and those seeking a relaxed, healthy lifestyle. The country is a stable democracy and has a strong commitment to environmental protection.
Life here is affordable. A couple can live well on a budget of $2,500 a month. This covers housing, food, healthcare, and entertainment.
The country’s healthcare system, known as the Caja, is high-quality and low-cost for legal residents.
The Pensionado visa is a great option for retirees. It requires a monthly pension of just $1,000.
The friendly locals, or Ticos, and a large expat community make it easy to build a social life. It’s no wonder this is considered one of the best places to retire.
#4. Mexico: The Close-to-Home Favorite
Mexico’s proximity to the U.S. makes it a top choice for many retirees: vibrant culture, delicious food, and a wide variety of climates and landscapes! You can choose from beach towns, colonial cities, or lakeside villages.
The cost of living is a major advantage. A couple can live a comfortable life for less than $2,500 a month.
Healthcare is another strong point. Many doctors are U.S.-trained, and costs are often 50% lower than in the States.
Getting residency is straightforward. The temporary resident visa requires a monthly income of around $4,100 or savings of about $70,000 in 2025.
With established expat communities in places like Lake Chapala and San Miguel de Allende, you’ll find a welcoming network of friends.
#5. France: The Gourmet Lifestyle
For those who dream of gourmet food, world-class art, and joie de vivre, France is an incredible option.
While it can be more expensive than other destinations, it offers amazing value in key areas. It is one of the most affordable retirement destinations when you consider the quality of life.
A couple can live well on a budget starting around $2,225 a month, especially outside of Paris. Housing is, on average, 34% cheaper than in the United States.
France’s healthcare system is often ranked as the best in the world and is accessible to legal residents after three months.
The Long-Stay Visitor Visa is the most common route for retirees. It requires proof of sufficient income, roughly equivalent to the French minimum wage. This visa allows you to immerse yourself in the culture and enjoy the country’s beautiful landscapes.
#6. Spain: Sunshine, Safety, and Culture
Spain delivers a fantastic combination of first-world infrastructure, safety, and a sunny Mediterranean lifestyle.
It is one of the safest countries in Europe, with very low rates of violent crime. The culture is relaxed and social, with a focus on family and friends.
A monthly budget of around $2,200 allows for a comfortable life in many parts of the country.
Healthcare is another highlight. Spain has both excellent public and private systems, and private insurance is very affordable. A healthy 64-year-old couple could get coverage for around $318 a month.
The Non-Lucrative Visa is the primary option for retirees. It requires an annual passive income of about $32,000. This makes it one of the best countries to retire in for those seeking a high-quality European lifestyle.
#7. Malaysia: The Exotic and Affordable Gem
Malaysia is a vibrant melting pot of cultures, with Malay, Chinese, and Indian influences.
This diversity is reflected in its incredible food scene. It is also one of the most affordable retirement destinations in Asia.
A couple can live exceptionally well on $2,500 a month. This can include renting a modern apartment with a pool and gym.
Healthcare is world-class and surprisingly inexpensive. Many expats pay for routine care out-of-pocket because the costs are so low.
The Malaysia My Second Home (MM2H) program offers a long-term visa for retirees. It has different tiers based on financial requirements, making it flexible for various budgets.
The warm climate and friendly, English-speaking locals make it an easy place to settle in.
More Top Choices for Your Retirement
The index also highlights other fantastic options. Greece (#8) offers stunning islands and an affordable Mediterranean lifestyle.
Italy (#9) seduces with its rich history, slower pace of life, and delicious food. Thailand (#10) rewards adventurous souls with its warm culture, exotic beauty, and incredibly low costs.
Each of these countries provides a compelling case for an overseas retirement. They are all excellent and relatively affordable retirement destinations.
Your Perfect Retirement Plan
Choosing where to retire depends on your priorities, budget, and dreams. This list is just a glimpse of a world of possibilities.
From the modern comforts of Panama to the ancient charm of Italy, a better, more affordable life is within your reach. So, which of these incredible retirement havens will you explore first?