central america is the no.1 place to retire
In this, our annual Global Retirement Index 2014, we profile the best destinations for good-value living around the world today.
We consider not only a wealth of statistics, but—critically—more than three decades of expertise and current insights from our network of correspondents.
Our experts—expats themselves—live in the places we rank and scout all over their adopted countries on your behalf.
Each year we ask them to respond to a long list of questions designed to get their fresh views on old places, and expert opinions on new ones. (For more on how we research our Index see below.) All the countries at the top of our Index were in close contention for the number one spot. But our winner—Panama—snags first place by a hair. Along with the world’s best range of retiree benefits, Panama has introduced new visas, which make it easier to gain residence there, and made major advances in infrastructure.
This means it simply out scores last year’s winner, Ecuador. Because of Spain’s economic crisis you’ll find more attractive opportunities there than ever to embrace an affordable life in the Old World, lifting that country into fifth place in our Index this year.
But whatever you see on our leader board below, just remember, we measure here only the very best havens. So the country last on our list—newcomer to the Index Cambodia—is still one of the best in the world.
In each of these destinations, you’ll find thousands of folks who have already found their dream retirements. You can too, and this 2014 Retirement Index is designed to get you started. It covers all the bases, revealing a wealth of choice when it comes to a comfortable life overseas… Let’s look at what the top five retirement havens in the world have to offer you…
Panama—Convenient, Easy and Affordable
Panama’s allure lies in a rare combination of value and variety. Plenty of places in the world offer one or the other. But how many offer both?
When it comes to attractive retirement destinations, the list is short and Panama is at the top. It’s the only country in Central America with a true First World city. But unlike most South American capitals, Panama City is only two-and a-half hours by plane from Miami. (And let’s not forget that, unlike some places closer to the U.S. border, Panama is hurricane free).
Nearly everything about Panama is convenient, particularly if you’re coming from North America. The currency is the dollar, English is widely understood, and the international community is large and welcoming. Even the littlest things are easy…your U.S. appliances will work here, no converters needed. And you can find anything you need, from gourmet ingredients to popular clothing brands.
Plus, no matter what you like to do… loll on the beach, golf a championship green, hike the highlands, join special interest clubs…you’ll be busy here. Unless, of course, you choose not to be. Spend as little—or as much—as you like. A good lifestyle is very affordable. Just be aware that it offers more temptation and opportunity to spend than some other overseas havens.
So if all these things are true (and have been for many years), what’s so special about Panama today? At the top of the list are its welcoming immigration policies.
Last year, two new residence programs made it easier than ever to move to Panama.
Quite a feat, since Panama has always been accessible in that regard. The Pensionado or pensioner residence program—which helped put Panama on the map as a retirement destination in the first place—is the primary reason. For anyone with a government or corporate pension, residence is almost a given. That’s regardless of age. The main requirement is simple: your pension must be at least $1,000 a month…and even that rule has its exception.
Of course, there are plenty of people who don’t have pensions. That’s where the new visas come into play. The first, nicknamed the “Friends of Panama” program, offers residence to members of over 40 countries…among them the U.S., Canada, and the UK. Geared toward professionals and entrepreneurs, the program’s straightforward requirements include a local bank account of at least $5,000. Applicants must also buy real estate, open a business, or get a job in Panama.
If your country of citizenship isn’t featured, you may be able to qualify for the new Professional Residence Permit. Also created in 2012, this program is a good option for anyone wanting to work in Panama. You must have a university education and steer clear of professions reserved for Panamanian nationals, such as the practice of law.
There’s one more reason Panama is even more alluring of late. The tiny country is in the midst of its most ambitious infrastructure overhaul ever. Panama has always been known for its above-average infrastructure. But the current administration upped the ante in ways never before seen.
Panama City is now the only city in Central America with a metro line. The transit system was barely able to cope with the city’s growth…and the thousands of shiny new cars joining the hustle-bustle every month. But now new buses, roads, traffic lights, overpasses, pedestrian bridges and more are helping speed things along.
Though transit (including the expanding Panama Canal) has been a major focus, infrastructure is excellent across the board. Panama is top-ranking in the region for technology and Internet coverage, reliable public transport, and clean drinking water. It also boasts consistent stability—in business, banking, and politics. And so the country that ruled the roost that is the Global Retirement Index for seven consecutive years is back at number one.
Ecuador—Still Great Value
With only a point shave of difference between the rankings of Panama and Ecuador on our Global Retirement Index, you may wonder what could possibly have happened in the past year for Ecuador to slip from the top spot.
The answer: nothing. Ecuador remains the perfect-weather, majestic-scenery, affordable place it has always been. The Ecuadorians are just as warm and welcoming and the opportunities for retirement are just as fertile. AndEcuador remains a top destination when it comes to affordability.
Where else can you rent an upscale, fully furnished apartment in the heart of one of the world’s largest World Heritage historic centers for just $400 a month? Or take a taxi across town for just $2 or $3?
Most retired couples in Cuenca, the most popular destination for English-speaking retirees in Ecuador say they live there quite comfortably—all in—for $1,500 to $1,800 a month. And that typically includes rent. Two- and three-bedroom apartments can be rented for $300 to $600 and that often includes furnishings.
You’ll find Cuenca, a city of 350,000 to 500,000 (depending how widely you throw the net) in southern Ecuador, closer to the country’s second international airport at Guayaquil than to Quito. Like Quito, the central historic area of Cuenca is also a World Heritage site and the iconic blue domes of its new cathedral and the red tiles of the ancient Spanish colonial buildings can be seen from the windows and terraces from many an expat residence.
Another place where the scales tip decidedly in Ecuador’s favor is in the climate category. In the country’s Sierra region, you’ll find daytime temperatures typically hover around 75 F, which means you’ll find little need for either heat or air conditioning. (International Livingeditors Suzan Haskins and Dan Prescher, who live in the mountains of Ecuador, say their typical utility expenses…for electricity, water and gas…are rarely more than $30 total.)
Even along the coast, despite the equatorial location, daytime temperatures rarely reach 90 degrees, and you’ll experience far less humidity than in many other tropical destinations.
Like other top retirement destinations, Ecuador offers a good private health care system, especially in the three largest cities of Quito, Guayaquil, and Cuenca. And if you’re over 65, you can avail of some nice retiree benefits, including a return of money spent on VAT (value-added tax) on your purchases refunded each month—up to about $250.
Ecuador offers something for everyone, whether you’re looking for sophisticated city living or the life of a gentleman farmer… And for a small country (about the size of the state of Colorado) it packs a big punch environmentally. Cutting through the middle of the country from north to south, you’ll find the majestic Andes mountains that rise to heights of 20,000 feet above sea level. To the east is the Amazon basin with it verdant rainforest and to the west, you can explore hundreds of miles of sparsely populated coastline where you’ll often have the beach to yourself.
We’ve seen expat retirees move to coastal Ecuador, especially, where tourism is still in its infancy as compared to other better-known destinations, and open restaurants, B&Bs, offer transportation services, and more. As in Panama, Ecuador hasn’t lagged in its infrastructure progress. This past February, the country’s new $680-million airport opened just outside Quito, with improved safety features and cargo capacity, and the longest runway of any international airport in Latin America. In the northern area of the country, a high-tech “City of Knowledge,” called Yachay, is being built. Work continues at a steady pace to upgrade and widen the Pan-American Highway.
The economy, too, is stable and growing—Ecuadorians themselves are enjoying better-than-ever lifestyles. Cellphones are ubiquitous, the internet is faster than ever, and integrated computer systems make everything from immigration functions to health care information easier and quicker than ever to access.
So if you’re on the fence, trying to decide between the top countries on our Global Retirement Index this year, you have a tough choice. Ecuador remains a top contender.
Malaysia—Asia’s Best Retirement Haven
Malaysia is the best place to retire in Asia right now, and there’s no sign of that changing. A couple can live comfortably in a luxury ocean-view condo on $1,700 a month including rent. (We know of couples living more modestly on even less…try $1,000 a month, including rent.)
The average temperature is 82 F all year round, and you’ll find some of the best beaches in the world here. There are cool hill stations, mountain retreats from the time of the British Raj, islands to hop or explore by yacht, and heath care is second-to-none.
Penang Island, in the north east and Kuala Lumpur, the country’s capital in the south, are medical centers of excellence. The hospitals are top-notch and the physicians speak English, having been either been trained or completed their postgraduate studies in the U.S. or UK—which makes the cost of health care all the more incredible. You can see a specialist without any need for an appointment for as little as $11. Just turn up. It’s the same with dentists.
Infrastructure here is First World and you’ll have no problem finding high speed Internet or cable TV (Packages cost from $30 a month). If you chose to drive you’ll find the roads are excellent. And when you move to Malaysia you can import a car—and your household goods—duty free.
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