The World's Top Retirement Havens in 2007

The World's Top Retirement Havens in 2007				weathered the earlier economic, political, and natural
				problems of the previous two years, and went on to
Whether your retirement is fast approaching or just				prosper.
something you find yourself often dreaming about,				Of course, low prices alone do not make for an ideal
you've probably imagined spending it in some far-flung				retirement or investment destination. There are
tropical haven. But moving to a country that you				plenty of places the world over where you can buy
know little about is a lot of hassle, right? It's probably				cheap land, but where you wouldn't want to live; not
not worth the time and effort, you think. Besides, all				so in Ecuador.
your family and friends are here.				It's hard to pinpoint the best reason for retiring to
Take it from us: it's worth it. If you look beyond				Ecuador, but one thing's for sure: this is an
your own shores you'll find that many countries				affordable-and beautiful-retirement destination.
around the world offer far greater benefits and				Ecuador also offers a high quality of life. This is no
advantages for retirees than those offered at home.				isolated backwater. It's a land of opportunity, where
One of the simplest ways to improve your				a middle class is forming. After waking from a long
retirement lifestyle is to choose the retirement				economic slumber, Ecuador is preparing to join the
destination offering you more of what you want at				global economy.
the best price. It's a question of priorities. What's				Retirees aged 65 or older have an extra incentive to
important to you? Is cost of living Number One on				consider Ecuador: airfares to North America and
your priority list?				Europe are half-price on several airlines; all in-country
Maybe for you weather is the key consideration.				transportation costs are 50% lower, and big
Are your must-haves telecommunications and				discounts apply to a variety of other expenses such
infrastructure? Proximity to the States and Canada				as taxes, utilities, and entertainment.
may also be a factor.				And remember: Ecuador is one place where the U.S.
Maybe you aren't anywhere close to retirement.				dollar is not losing value, which makes an Ecuadorian
Nevertheless, it's important to think about and plan				retirement especially appealing. Following the
for your future. Like every phase in your life, you'll be				late-1990s' debt default, Ecuador decided to adopt
surprised how fast retirement creeps up on you.				the U.S. dollar as its official currency, which eliminates
That's why, once a year, in our Global Retirement				currency risk. Inflation is less than 3% and most
Index, we look closely, specifically, at the best				economic indicators are positive.
opportunities worldwide for retirement living. Where				Top for Europe
will the pensioner's dollars go furthest? Which country				Italy comes third in our Index this year with high
is the safest? Where is the health care best? We				scores across the board. It's difficult to figure out
give top priority to those things that matter most to				whereabouts in Italy you picture yourself living-there
anyone planning for retirement, including programs of				is probably more beauty per square mile here than in
special benefits for retirees (tax breaks, discounts,				any other corner of Europe. It's no simple matter to
and freebies, for example, that various governments				hit on the ideal location, even if you know for sure
proffer to residents, sometimes specifically to foreign				that you prefer big city life to the tranquility of the
residents in an effort to attract investment and				countryside. Right now, International Living
retirement dollars).				recommends two places: Umbria in central Italy, and
We can show you the opportunities and possibilities,				Calabria-situated in the toe of Italy.
the winners of our top retirement countries, but it's				"The green heart of Italy," Umbria is just as alluring
up to you to decide what your main priorities are				as its more famous next-door neighbor, Tuscany.
before you find your ideal retirement haven. The aim				With expats seeking farmhouses and other rural
of our Index is to give you a good starting guide.				properties, prices are catching up fast. Although
Mexico-our new winner				Umbria doesn't possess a coastline, everywhere you
Moving up four places to take our top spot as the				look you'll see rumpled hills crowned with fortified
world's top retirement haven this year is Mexico.				towns and higgledly-piggledly villages. From certain
Mexico offers the perfect mix of centuries-old				vantage points, you can see several hill towns at a
traditions and contemporary lifestyles. Moving to				time.
Mexico means you can still have all of the amenities				Many parts of the province are within an hour's drive
you grew accustomed to north of the border: cable				of Florence or Siena. Towns like Assisi, Todi, Spoleto,
TV, high-speed Internet, and modern home				Orvieto, and Norcia are every bit as beautiful and as
appliances. And if you prefer, when you move to				historic as any small town in Tuscany.
Mexico you can even bring all of your favorite things				To give you an idea of property prices in the region,
with you without paying import taxes.				in Monteleone d'Orvieto, there's a 968-square-foot
Goods and services cost less, so you can afford the				apartment in need of restoration. Selling for $85,000,
kinds of luxuries only the very wealthy enjoy up				it has two bedrooms and one bathroom, plus a
north: a maid, a cook, and a gardener for example. In				ready-made vegetable garden. There's another
your retirement here, you'll have time to volunteer at				apartment in the same town that's habitable: 807
the local school, time to golf in the mornings, time to				square feet, two bedrooms, and one bathroom. Price:
relax on the beach…time to savor life.				$100,000.
Whether your vision of the ideal retirement involves				Calabria's shores are lapped by the Tyrrhenian Sea on
shopping, fishing, sunbathing, diving, biking, mountain				the west, and the Ionian Sea on the east. What
climbing, parasailing, collecting crafts, visiting				about property prices here? In the Calabrian seaside
archeological sites, partying, going to concerts,				town of Scalea, an attractive second-floor apartment
attending the theater, or fine dining, in Mexico you				of 430 square feet is selling for $50,000.
can engage in all of these activities, and many more.				Why Panama fell from glory?
How our Global Retirement Index is scored				Panama won our Retirement Index for six years in a
* Real estate. Countries where real estate prices are				row. But, it's fallen from the top spot in 2007 and is
low and the purchase of real estate is relatively easy				now in fourth place. Why? Panama still has the same
receive the highest scores. We use our own				great retiree benefits…this hasn't changed since last
experiences plus reports from our contributing editors				year (see the sidebar on retiree benefits on page
and real estate contacts around the world to rate				XX). Still, unless you have a verifiable pension or
each country. Weight: 15%				pockets deep enough to afford a $40,000
* Entertainment, Recreation, and Culture. This				investment in a forestry project or a $200,000
category considers the number of newspapers per				investment in real estate or a government bank CD,
1,000 citizens, the number of museums and cinemas				it can be difficult to get a resident visa in Panama.
per capita, the number of university students, the				Since the government of Panama recently put a
literacy rate, and the variety of cultural and				30-day limit on its tourist visa, it has become more
recreational offerings. Weight: 10%				difficult for anyone seeking to rent a home or
* Cost of living. This score is based on statistics from				apartment and stay in the country for any length of
the Indexes of Living Costs Abroad, Quarter				time.
Allowances, and Hardship Differentials, published by				And it's true that this country's popularity has driven
the United States Department of State, and on data				up real estate prices. Once plentiful real estate
published by Business International. We also use our				bargains-from $100,000 apartments in Panama City to
firsthand experiences living and traveling in these				$40,000 lots in Boquete-are getting harder to find.
countries. The lower the score, the higher the cost				Panama still has much to offer, though. Whether
of living. Weight: 20%				you're enticed by the friendly people or the tropical
* Safety and stability. This measure of unrest in each				climate, Panama is a great retirement destination
country is based primarily on Interpol data and State				(remember, it's still in our top 5).
Department statistics. It also takes into account the				We don't have print space here to talk about every
civil liberties and political rights granted by each				country in our Index, but you can access information
government. Our own experiences and reports from				on all countries featured here at our website. In the
expatriates living in these countries also influence the				search engine, type in the name of the country of
safety scores. Weight: 5%				interest to you to find out more.
* Health care. Considered in this category are the				NEED TO KNOW
cost of a typical visit to a general practitioner and the				Countries with special retiree benefits
cost and coverage particulars of health insurance.				Mexico
Weight: 20%				If you've considered retiring to Mexico, you now
* Climate. Countries with temperate weather				have another good reason-foreigners who hold a
throughout the year, moderate rain fall, and little risk				valid residence visa for Mexico can now take part in
of natural disaster come out on top in this category.				Mexico's senior citizens' benefits program.
We use data representing each country as a whole				The program, for adults aged 60 and over, offers
instead of favoring one region over another. Weight:				discounts on a wide range of services. These include
5%				discounts on health-related services (hospitals,
* Special benefits. This category considers				doctors' visits, lab tests, medical devices, pharmacies,
government provisions that make moving to and				and dental work); cultural activities like theater tickets
living in each country easier and more affordable for				and entrance fees to museums and archaeological
foreigners. Taken into account are property rights for				sites; travel-related costs, including airline tickets,
foreign residents, property tax rates, duty-free				buses, car rentals and purchase, and hotel
imports on personal belongings, currency controls,				accommodation. Discounts can range up to 50% off
employment restrictions, voting rights, and				the full price of the good or service. Non-Mexicans
transportation discounts for seniors. Weight: 20%				who wish to take part in the program must go to a
* Infrastructure. This section considers the number of				local office of INAPAM (Instituto Nacional de las
cars and telephones per 1,000 residents, the length				Personas Adultas Mayores) to request a membership
of railroad track in usable condition, the number of				card. See: for more information (in Spanish).
airports, the quality of the country's road and				Malaysia
highway network, and the availability of				Three years ago, the government of Malaysia
telecommunications. Weight: 5%				launched "Malaysia-My Second Home" (MM2H),
If health care is a concern, you should know that in				replacing the former "Silver Hair" program introduced
much of Mexico the health care is first rate. Private				in 1987. MM2H provides incentives for foreigners,
clinics and hospitals are staffed by expert physicians				particularly retirees, to live permanently in this
(many of whom trained in the U.S., Europe, or in				country. Successful applicants initially receive what is,
Mexico's own world-renowned teaching hospitals), and				in effect, a five-year visa with unlimited entry/exit
medical care and prescription drugs will cost you only				privileges. There is no minimum annual residence
a fraction of what you would pay in the States. In				requirement. After the first five years, you can apply
our Index, Mexico scores 79 out of a possible 100				for permanent residency. While you're not
points in this category.				guaranteed it will be granted, you can expect
Mexico is such a diverse nation that everybody can				automatic renewal of your original visa if you continue
find exactly what they want. You don't have to				to meet its conditions. Within six months of approval,
choose between water or mountains; here you can				MM2H residents may bring in household effects
have both. And because of geographic diversity, you				duty-free, and import or purchase one vehicle locally,
can also choose the climate to enjoy during your				tax free. Savings on auto taxes can amount to
Mexican retirement: from hot and dry in the north, to				thousands of dollars on expensive models. Other
hot and humid in the south, to spring-like				benefits include exemption from Malaysian income tax
temperatures all year round in the Colonial Highlands.				on pension and other income remitted into the
You can also own the home of your dreams in				country, plus that on the interest from any fixed
Mexico-for much less than it would cost you most				deposit made under the MM2H program (a savings of
anywhere in the U.S. or Canada. The real estate				about 29%).
market offers endless possibilities for your retirement.				In addition, residents may purchase up to two
Mexico receives a high score of 84 in our Real Estate				properties with a value of not less than $40,000
category. Despite what you may have heard, it's not				each. Banks may advance up to 60%. For information
too late to buy real estate here.				on cost of living and many other useful topics,
You can own beachfront-not just ocean view				including domestic help, see Registration at that
property-in Mexico for less than $100,000.				website will also bring you updates on MM2H.
Once you decide to move to Mexico, it's difficult to				Panama
know where to go-it's a big country. Below are the				If you can document a minimum monthly pension of
10 places we think make the most sense for				$500 (plus another $100 per dependent), you are
expatriate living in this country, based on criteria such				eligible for a long list of perks in Panama, including:
as health care, climate, infrastructure, and housing				Import duty exemption for household goods; tax
costs. These are places our husband-and-wife team in				exemption to import a new car every two years;
Mexico, Dan Prescher and Suzan Haskins, have				50% off entertainment anywhere in the country
personally scouted and personally recommend above				(movies, theaters, concerts, sporting events); 30%
other options in this great big country. They are:				off in-country bus, boat, and train fares; 25% off
Rosarito Beach, Puerto Vallarta, Quer?ro, Mazatlan,				in-country airline tickets; 50% off hotel stays Monday
M?da, La Paz, Campeche, Playa del Carmen/Riviera				through Thursday; 15% off hospital bills (if no
Maya, Ajijic/Chapala, and Sayulita/San Pancho (San				insurance applies); 10% off prescription medicines;
Francisco). Of course, we're not forgetting San Miguel				20% off medical consultations; 50% reduction in
de Allende, one of Dan and Suzan's favorite places in				closing costs for home loans; 25% discounts on utility
Mexico. Suzan recently reported of this town: "San				bills…and many more.
Miguel is one of the prettiest towns in all of Mexico.				Ireland
Stepping into San Miguel's Centro is like stepping back				If Ireland is your choice as a retirement haven, you
in time…but with all of today's modern				can take advantage of the many retirement
conveniences."				incentives this country has to offer, including free
In second place…				health care, free public transportation, a fuel
Ecuador				allowance, and significant discounts on hotel and
Ecuador always does well in our Retirement Index,				electricity bills. You're even allowed to vote in local
but this year it moves from 10th position last year to				elections.
take second place this year. If you retire in Ecuador,				Belize
every clich?ou've heard about living large on little				Expats can apply for status as a Qualified Retired
money-about settling into the lap of luxury on even a				Person (QRP), and, with that status, you can avoid
pensioner's budget-is true. Ecuador gets 85 points in				Belizean income tax and also import your household
our Cost of Living category, making it one of the				goods tax-free up to a total exemption amount of
world's cheapest places to live. Take $250 out of the				$15,000. You can also bring in a vehicle (a car, light
ATM Monday morning and your expenses are				aircraft, or boat) tax-free. In fact, every five years
covered for the week. In fact, we ranked Ecuador				you can import a new vehicle, tax-free.
as the world's best retirement haven in 1999, after it

Noralfa

The World's Top Retirement Havens in 2007