In the States today, the discussion about retirement orbits around how much
less
of it we’re all going to have. While the cost of everything from
healthcare to food swells… incomes, pensions and nest eggs erode,
leaving baby boomers fewer and fewer options for retirement at home.
But look at the right places beyond our borders today, and you’ll
find you have more good choices than ever for a comfortable – even a
pampered – retirement. In any one of our top 19 havens for 2012, a
lifestyle well beyond your reach in the States could be yours for
pennies on the dollar.
In this, our annual Global Retirement Index, we bring you the top
choices available on the planet today. From beachfront hideaways to
arts-rich colonial cities, from cosmopolitan capitals to small highland
villages, there’s an overseas haven to fit your fantasy… and your
budget.
For our Retirement Index, we only measure the very best havens
against one other. So the country last on our list is still the 19th
best in the world.
In each of our 2012 top retirement destinations, you’ll find
thousands of ordinary folks who’ve not simply salvaged their retirements
overseas… but upgraded them.
Take Daphne Newman, who lives in Caribbean
Honduras.
She’s spending just $1,400 a month to live yards from a white-sand
beach on the island of Roatan. Only a three-hour flight from the U.S.,
English-speaking Roatan with its world-class reef just offshore, is an
easy place to make friends and fit in. It lands mid-table in this year’s
Index.
Jack Griffin and his wife Margaret have opted, by contrast, for city life in
Nicaragua.
When the stock market crashed and the value of their home in the States
plummeted by 30%, they began to worry about how to fund their
retirement. The final straw came with a 37% hike in their annual
health-insurance premium. At age 60, they felt they deserved the
retirement they had worked for all their lives, so they found a new home
in Managua, the country’s capital.
Today their international medical insurance costs them 62% less than
their policy did back home (yet their local hospital is internationally
accredited and the doctors speak English).
Retired now without money worries, they spend their days exploring,
horseback riding, going to the beach or gym, and doing yoga. They have a
full-time maid and a gardener and, says Jack, “We do it all for less
than half the cost of a moderate lifestyle back home in Atlanta,
Georgia.”
Chuck
and Jamie Bilbe, ready to retire in Florida, found themselves in a
situation similar to the Griffins’. “We were concerned that our
retirement savings wouldn’t see us through, so we began looking overseas
for a place where our ever-shrinking nest egg might last longer,” says
Chuck. Now they live in Corozal,
Belize,
their cost of living is much lower than it was in the States, but
that’s not the greatest appeal. What they say they like most is the
Old-World lifestyle. “Like Florida in the 1950’s,” they say. “We’re
eating better, sleeping better and enjoying social activity much more
now than we did before.”
It’s not just destinations south of the States that appeal. Pam
Griner Leavy and her husband Jim are just two of the more than 100,000
American expats
living in France.
They’re retired in Paris on a reasonable $3,149 a month. “There are so
many things for free here, or reasonably priced…big-city life is good,”
says Pam.
In Asia you can live comfortably for less than $1,000 a month on a powder-sand beach in
Thailand. Up the budget just a bit and you can afford First-World comforts and conveniences in colonial Penang Island,
Malaysia.
Keith Hockton and his wife Lisa live there, where they rent a sea-view
apartment for $1,000 a month – it comes with a shared pool and gym – and
they eat out five nights a week, keep a small sailboat, enjoy cycling
through the botanic gardens. Their total budget is $1,719 a month.
In
Brazil, expats with $2,150 a month can live a block from the country’s best beaches in Fortaleza. In Boquete,
Panama,
Karl and Liz Parker need just $2,000 a month to fund their life in a
place that provides lavish highland views in a near-perfect climate.
Panama’s retiree-benefit program provides them discounts on nearly everything, too, which helps keep their costs down.
In Cuenca,
Ecuador,
Douglas Willis, his wife and two children live on just $1,000 a month.
In Costa Rica’s Central Valley, Sharon and Lee Harris bought a townhouse
in Heredia for $75,000, and pay only $40 a month for healthcare
coverage as members of the
Caja, the country’s excellent national
healthcare system.
Wherever the community they’ve chosen is—beach, city, highland,
valley—these expats all have one thing in common: They’re living the
lives they’ve always wanted for much less than they ever dreamt they
could.
Think about it this way: If you had $20,000 a month to retire on—you
could live lavishly pretty much anywhere on the planet. But what we’re
interested in here are the places where you can live that lifestyle on
one-tenth the budget…
Places where you can have a maid clean for you…hire a gardener… wake
up to a view…have great health care, eat well, enjoy the finer things in
life—for less than $2,000 a month. You may be surprised how many there
are…
This 2012 Retirement Index covers all the bases, revealing a wealth
of choice when it comes to comfortable retirement living abroad. Choices
you don’t have to be wealthy to take advantage of.
The Cheapest Places to Retire
Ecuador
is the clear winner in our cost of living category. A couple watching
their spending here can live well on $800 a month. And even if you push
the boat out you’ll find it hard to spend more than $1,500.
Patricia Farmer and her husband Ron retired to Bahia on the country’s
coast. After 10 months living there, they know what things cost. “It
averages out to be a fifth the cost of living in California. We live in a
nice highrise condo overlooking the ocean. With two spoiled cats in
need of gourmet food, our love of fine dark chocolate, good Chilean
wines, and eating out with friends, we enjoy a very comfortable
lifestyle—even more luxurious than we had in California. You can live on
less, no doubt, but our current budget is $1,500,” says Patricia.
But it’s not just Ecuador that’s cheap. In Panama’s highland haven of
Boquete, expat Robin Cook rents a three-bed apartment for just $450 a
month. On the Pacific Coast in Coronado you’ll eat out for $7…in the
heart of the capital $1,500 covers you for everything…
In Nicaragua, expats in the colonial city of Granada are spending
around $1,200 a month. A small house can be $500 to $1,000 a month to
rent. You can get a fantastic steak dinner in the finest restaurant for
around $13. Regular fare at typical restaurants runs about half that and
a “local” meal is $2 to $3. The local beers, which are good, run from
$0.75 to $1.50.
On the white-sand beaches of the
Dominican Republic $2,000 a month means living in a luxury apartment, having a maid, heath care…
everything. And of course, it’s easily done for less…
Where Are The Best Retiree Benefits?
It’s
almost shocking just how many special benefits, discounts and breaks
you can gain access to as a retiree overseas. In countries like
Ireland, Brazil or
Chile, for example, you’ll get discounts on public transport, utilities, importing your household goods and more.
But some countries stand out for the amount and quality of benefits
they offer foreign retirees. Panama tops the category with an organized
program of discounts and perks called the
pensionado. The program is open to foreigners and there’s no minimum age requirement.
With it you have serious discounts, money off that makes a big
difference to your costs. Like 20% off any professional services used in
Panama; 50% off for movies, theaters and sporting events; a 30%
discount on public transport, 25% off the price of food eaten in a sit
down restaurant; 15% off in fast food joints, 15% off in hospitals and
private clinics…25% domestic flights on COPA…the list goes on…
Ecuador, too, has excellent benefits, though they’re not in an organized package like the
pensionado.
You get 50% off public and private transportation within the country
(including the Galápagos); 50% off tickets for all cultural and sporting
events, including movies; 50% off electric and water bills (below
certain usage levels); and free domestic landline phone service (does
not include long distance and other services). You’ll also get 50% off
international airfares on Taca, Copa, or AeroGal for round-trip flights
originating in Ecuador. And when you’re over 65, you pay lower income
tax.
And there are other countries with special programs, like Belize,
which has the Qualified Retired Persons (QRP) program, and then there’s
the Malaysia My Second Home program, open to all foreigners wishing to
retire to one of Asia’s best-value destinations… Every country on our
list has some “retiree benefits” to offer.
The Best-Value Real Estate
There’s
a lot to consider when buying a home…especially one overseas. First
thing you want to know is how much it’s going to cost you, and again,
Ecuador offers some of the best-value real estate in the world. Fifty thousand will get a penthouse suite in a colonial mountain town or a beachfront condo.
In fact, it’s so affordable that some expats chose both. Ron and
Terresa Moore wanted mountain and beachfront retirement. So they bought a
two-bed condo in the Andean town of Cotacachi and a new two-bed condo
on the beach in Crucita—grand total $111,000.
And in Panama you’ll find bargains, too. Karl and Liz Parker both a
home among the pines of Alto Boquete for $100,000. Marvin and Joanne
Riddell bought their 1,650-square-foot beachfront condo in La Barqueta
for $180,000…fully furnished. And in Panama City you’ll find beautiful
apartments from $90,000. Then there’s
Mexico where in places like Tulum, on the country’s Caribbean coast you’ll find properties from $167,000.
We didn’t just look at real estate prices. We always recommend you
rent before you buy so we also checked out rental costs. Again Ecuador
is a front runner and you can rent a two-bed apartment on the beach for
$500 a month or a condo in colonial Cuenca for $500.
In Thailand, about $500 a month will get you a really nice, liveable place just about anywhere in the country.
IL contributor, Jason Gaspero pays just $222 a month for his beachside bungalow with air-con, hot water, WiFi, and a refrigerator.
Easiest Places to Integrate
Obviously
language is the biggest factor in how easily you can make friends and
build up a new network in your overseas home. That means
English-speaking countries like Belize, Ireland and
New Zealand
do well…but other places get high marks, too, in parts of Panama,
Ecuador and Mexico you’ll get by in English, and in Malaysia and
Thailand you’ll find plenty of locals happy to try out their English.
Of course, in lots of places there’s already an established expat
community to get involved with. There are over 80 interest groups around
Lake Chapala, home to Mexico’s biggest expat community. Living in
Paris, your high-school French might be rusty, but there are dozens of
long-established expat clubs happy to welcome new members. The expat
communities of places like Cuenca, Ecuador, and Granada, Nicaragua, have
changed the face of those cities, and you’ll find making new friends
and establishing yourself in the community a lot easier than you think.
Then there’s the million-dollar question—exactly how friendly are the
locals? Well, the answer varies from “very” to “extremely” with the
locals in all our havens happy to help a stranger in a strange land.
Making an effort with the language, even just “buenas dias” or “merci”
will earn you mega-brownie points. And remember, making new friends,
learning about different cultures is often the best—and least
planned—aspect of an overseas retirement.
But what about those home comforts? There’s nothing like peanut
butter, being able to catch a ball game and pumpkin soup mix to help you
settle in. For our Index we gauged just how difficult it was to find
that packet of Cheerios or a genuine hotdog. You’ll find them in most
places, although as imports they’re usually more expensive than local
brands.
The Most Exciting Retirement Haven
Let’s
get this out of the way…none of our picks are boring places, it’s just
that some have more to offer than others in terms of the range of
amenities and entertainment options to keep you busy.
If variety is the spice of retired life, than Paris, Panama City, the expat communities of Mexico, Medellin in
Colombia,
and Bangkok, Thailand, should be top of your list. Here you’ll find
something different every night…choose from catching a concert, seeing a
movie or eating out with friends for a fraction of the cost back home.
“Thai food is amazing,” says Jason Gaspero, “But if you get tired of
it, you can find restaurants with food from all over the world.” In
Medellin’s El Poblado district you’ll find Japanese, French, seafood and
Italian restaurants within a block of each other.
In Malaysia you’ll catch a movie in English for $4…before it comes out in the U.S. In Punta del Este,
Uruguay, artists like Shakira don’t just perform there, they live there, too.
If you love the sea, then Placencia and Amergris Caye in Belize,
Roatan, Honduras, and Panama’s Caribbean Coast make sense. Scuba diving,
fishing, sailing, kayaking and snorkelling, they’ve got it all. And if
surfing is your passion, catch the best waves on Nicaragua and Costa
Rica’s Pacific Coasts.
For foodies in love with culture,
Spain and
Italy
offer a menu of delights unmatched anywhere else, even the smallest
villages ooze history and art is everywhere. You’ll find delicious
three-course meals for less than $20 in both countries, too.
Of course, you might be content with amazing new views, meeting
friends down the boardwalk and a homecooked meal. “If you’re looking for
exciting night clubs, Kentucky Fried Chicken, or a night at the opera,
Bahia, Ecuador, is not for you. But for peace, simplicity, a dish of
Pingüino ice cream, and soothing natural beauty, this is heaven,” says
Patricia Farmer. “You would be hard-pressed to find such tranquillity in
any beach resort town in the U.S. Even the wealthiest people inhabiting
fortress-like beach homes on the hills of Malibu have to spend much of
their lives sitting in rush hour traffic, breathing in smog, and feeling
the crush and pressures of a type-A culture.”
Healthcare in our Havens
In
each of our 19 havens you’ll find first-class hospitals and clinics
where care is second-to-none, and the staff are often U.S.-trained. But
while the care is similar to the U.S. in many places, it’s a lot
cheaper than back home. You’ll literally save thousands on procedures
if you need them, and hundreds on prescriptions and doctors’ visits.
For example, a visit to the doctor in Nicaragua is $15, in Panama its
$10 and in France house calls are standard. In fact, in many of our
choices doctors put a value on the personal touch. “Our doctor in
Nicaragua speaks English and we have his personal cell number for
emergencies. Hard to imagine that happening in the U.S.” says Darrell
Bushnell.
In many of our picks the public health care systems provide wonderful
low-cost care. In Costa Rica the public health care system called the
Caja,
is part of a socialized medical system. Living in the Central Valley,
Sharon and Lee Harris are members. “It provides economical and excellent
medical care as well as prescriptions for only $40 per month for both
of us. There is a
Caja clinic in every neighborhood. There are also many excellent private hospitals in the Central Valley and state-run
Caja hospitals in every province,” says Sharon.
The Ecuadorian government guarantees senior citizens access to free
health care and medication and exemption from notary and registration
fees. “All expats are able to participate in the Ecuador Social Security
medical program,” explains Jack Moss who, with his wife Debbie, retired
to Cotacachi two years ago. “The premium is about $57 a month, and
there is no co-pay or deductible for physician visits, hospitalization,
medications, or dental visits.”
Even just living overseas can improve your health, as Lucky and Erin
Ivy point out on page 11 of this issue. On the sandy beaches of
Placencia, Belize, they found a stress-free life that means they sleep
better, and feel healthier, than ever before.
The Best Retirement Infrastructure
These
days, you can have a U.S. phone number ring in your home overseas for
less than $20 a year. Through online services like Skype, you can video
chat with friends and family back home every day if you want to— for
free. The world is more connected than ever, and that makes exploring it
so much easier than it ever has been.
Good Internet coverage is a necessity most expats today are reluctant
to do without. In all our havens, rest assured: You can get online.
Malaysia, Italy and France have higher levels of Internet penetration
than other countries—but there’s access in all of them. Quality roads
and good cell phone coverage matter, too. Now, you may not want to
drive, and in that case, you’ll want access to a good public transport
system.
In Paris, expat Jim Leavy says he’s delighted by the great public transportation…in Cotacachi, Ecuador,
IL editors
Dan Prescher and Suzan Haskins get by with taxis and buses. When the
mood strikes, Patricia and Ron Farmer can explore the sandy beaches of
the Ecuadorian coast by taxi—$35 for the whole day. And what about
direct, cheap flights home to the U.S. to visit family? You don’t even
have to fly to get to Mexico; you can drive. It takes less time to fly
from Houston to Quito or to Panama City than it does to fly from New
York to Los Angeles.
The Best Climate
You’ll
find lots of climate choice in our top retirement havens. Sharon
Hiebing says she practically lives in tank tops and shorts now, and only
occasionally needs a light jacket or close-toed shoes. Ever since her
move to San Ignacio, Belize, Sharon has been enchanted by the climate.
She’s not alone. Thousands of expats have turned in their snow shovels
for good.
In places where the weather is warm year-round, not only do you
eliminate the need for heavy winter clothes, but you gain in quality of
life. Better weather means you’re outside more. And that often
translates to “healthier.” Plus it usually means lower utility bills,
too.
In Belize you’ll find an average temperature of 80 F, and it isn’t
even one of our highest scoring havens in this category. Because pretty
much all of our picks offer a perfect climate for part of the year, we
concentrated on the ones that are the best year round.
But you could opt for the part-time strategy—capitalizing on good
weather in different parts of the world. That’s what Kelly and Angela
Grams do. They live lakeside in Canada May to September, then head south
to their second home in warm-weather Puerta Vallarta, Mexico, October
to December. Then every January to April they rent out their Mexican
condo to cover their costs and spend those three months traveling.
How to Know You’re Safe Overseas
The expats living in each of our top havens report they feel safe. In
fact, often they say they feel safer than they did back in the States.
That’s not to say there’s no petty crime or that nothing bad ever
happens.
But just as you wouldn’t dismiss the idea of owning a condo on
Chicago’s upscale Magnificent Mile because of the crime stats on that
city’s south side…you shouldn’t reject a town we recommend in a country
where you can retire well for less…because you remember hearing
something about that nation being “dangerous.” Old stereotypes die hard.
You’re best served by seeing a place for yourself. Talk to expats on
the ground. See how comfortable you feel there. We predict: You’ll be
pleasantly surprised.
Why Ecuador is the World’s Best Retirement Haven
No matter where you choose to
live in Ecuador,
there is no better retirement haven in the world. That’s what our 2012
Global Retirement Index reveals. Across all eight of our crucial
categories it scores strongly. It outright wins two. And nowhere does it
fail to live up to its reputation.
Ecuador has the cheapest costs of living, the best-value real estate,
and it presents you with some of the most diverse options of any
country. Live in the colonial splendor of its cities for less than
$1,000 a month…buy a beachfront condo for $60,000, with a view of the
crashing Pacific…explore the country’s Amazonian jungles…live
comfortably in thriving expat communities…or with friendly, welcoming
locals.
The special benefits you can avail yourself of as a retiree are
second only to those offered by Panama, and they don’t trail by much.
You’ll find world-class healthcare at a fraction of the costs back home,
along with doctors trained in the U.S. who speak English.
You’ll have dinner out for $2.50, an hour long massage for $25…a beer
costs $0.85, and if you want to keep busy with work, it’s one of the
best countries for an expat start-up.
