The World's Top Retirement Havens in 2007

The World's Top Retirement Havens in 2007covered for the week. In fact, we ranked Ecuador as
By Laura Sheridanthe world's best retirement haven in 1999, after it
Whether your retirement is fast approaching or justweathered the earlier economic, political, and natural
something you find yourself often dreaming about,problems of the previous two years, and went on to
you've probably imagined spending it in some far-flungprosper.
tropical haven. But moving to a country that you knowOf course, low prices alone do not make for an ideal
little about is a lot of hassle, right? It's probably notretirement or investment destination. There are plenty
worth the time and effort, you think. Besides, all yourof places the world over where you can buy cheap
family and friends are here.land, but where you wouldn't want to live; not so in
Take it from us: it's worth it. If you look beyond yourEcuador.
own shores you'll find that many countries around theIt's hard to pinpoint the best reason for retiring to
world offer far greater benefits and advantages forEcuador, but one thing's for sure: this is an
retirees than those offered at home.affordable-and beautiful-retirement destination. Ecuador
One of the simplest ways to improve your retirementalso offers a high quality of life. This is no isolated
lifestyle is to choose the retirement destination offeringbackwater. It's a land of opportunity, where a middle
you more of what you want at the best price. It's aclass is forming. After waking from a long economic
question of priorities. What's important to you? Is costslumber, Ecuador is preparing to join the global
of living Number One on your priority list?economy.
Maybe for you weather is the key consideration.Retirees aged 65 or older have an extra incentive to
Are your must-haves telecommunications andconsider Ecuador: airfares to North America and
infrastructure? Proximity to the States and CanadaEurope are half-price on several airlines; all in-country
may also be a factor.transportation costs are 50% lower, and big discounts
Maybe you aren't anywhere close to retirement.apply to a variety of other expenses such as taxes,
Nevertheless, it's important to think about and plan forutilities, and entertainment.
your future. Like every phase in your life, you'll beAnd remember: Ecuador is one place where the U.S.
surprised how fast retirement creeps up on you.dollar is not losing value, which makes an Ecuadorian
That's why, once a year, in our Global Retirementretirement especially appealing. Following the late-1990s'
Index, we look closely, specifically, at the bestdebt default, Ecuador decided to adopt the U.S. dollar
opportunities worldwide for retirement living. Where willas its official currency, which eliminates currency risk.
the pensioner's dollars go furthest? Which country isInflation is less than 3% and most economic indicators
the safest? Where is the health care best? We giveare positive.
top priority to those things that matter most to anyoneTop for Europe
planning for retirement, including programs of specialItaly comes third in our Index this year with high scores
benefits for retirees (tax breaks, discounts, andacross the board. It's difficult to figure out whereabouts
freebies, for example, that various governmentsin Italy you picture yourself living-there is probably more
proffer to residents, sometimes specifically to foreignbeauty per square mile here than in any other corner
residents in an effort to attract investment andof Europe. It's no simple matter to hit on the ideal
retirement dollars).location, even if you know for sure that you prefer big
We can show you the opportunities and possibilities,city life to the tranquility of the countryside. Right now,
the winners of our top retirement countries, but it's upInternational Living recommends two places: Umbria in
to you to decide what your main priorities are beforecentral Italy, and Calabria-situated in the toe of Italy.
you find your ideal retirement haven. The aim of our"The green heart of Italy," Umbria is just as alluring as
Index is to give you a good starting guide.its more famous next-door neighbor, Tuscany. With
Mexico-our new winnerexpats seeking farmhouses and other rural properties,
Moving up four places to take our top spot as theprices are catching up fast. Although Umbria doesn't
world's top retirement haven this year is Mexico.possess a coastline, everywhere you look you'll see
Mexico offers the perfect mix of centuries-oldrumpled hills crowned with fortified towns and
traditions and contemporary lifestyles. Moving tohiggledly-piggledly villages. From certain vantage points,
Mexico means you can still have all of the amenitiesyou can see several hill towns at a time.
you grew accustomed to north of the border: cableMany parts of the province are within an hour's drive
TV, high-speed Internet, and modern home appliances.of Florence or Siena. Towns like Assisi, Todi, Spoleto,
And if you prefer, when you move to Mexico you canOrvieto, and Norcia are every bit as beautiful and as
even bring all of your favorite things with you withouthistoric as any small town in Tuscany.
paying import taxes.To give you an idea of property prices in the region, in
Goods and services cost less, so you can afford theMonteleone d'Orvieto, there's a 968-square-foot
kinds of luxuries only the very wealthy enjoy up north:apartment in need of restoration. Selling for $85,000, it
a maid, a cook, and a gardener for example. In yourhas two bedrooms and one bathroom, plus a
retirement here, you'll have time to volunteer at theready-made vegetable garden. There's another
local school, time to golf in the mornings, time to relaxapartment in the same town that's habitable: 807
on the beach…time to savor life.square feet, two bedrooms, and one bathroom. Price:
Whether your vision of the ideal retirement involves$100,000.
shopping, fishing, sunbathing, diving, biking, mountainCalabria's shores are lapped by the Tyrrhenian Sea on
climbing, parasailing, collecting crafts, visitingthe west, and the Ionian Sea on the east. What about
archeological sites, partying, going to concerts,property prices here? In the Calabrian seaside town of
attending the theater, or fine dining, in Mexico you canScalea, an attractive second-floor apartment of 430
engage in all of these activities, and many more.square feet is selling for $50,000.
How our Global Retirement Index is scoredWhy Panama fell from glory?
* Real estate. Countries where real estate prices arePanama won our Retirement Index for six years in a
low and the purchase of real estate is relatively easyrow. But, it's fallen from the top spot in 2007 and is
receive the highest scores. We use our ownnow in fourth place. Why? Panama still has the same
experiences plus reports from our contributing editorsgreat retiree benefits…this hasn't changed since
and real estate contacts around the world to ratelast year (see the sidebar on retiree benefits on page
each country. Weight: 15%XX). Still, unless you have a verifiable pension or
* Entertainment, Recreation, and Culture. This categorypockets deep enough to afford a $40,000 investment
considers the number of newspapers per 1,000in a forestry project or a $200,000 investment in real
citizens, the number of museums and cinemas perestate or a government bank CD, it can be difficult to
capita, the number of university students, the literacyget a resident visa in Panama. Since the government
rate, and the variety of cultural and recreationalof Panama recently put a 30-day limit on its tourist
offerings. Weight: 10%visa, it has become more difficult for anyone seeking
* Cost of living. This score is based on statistics fromto rent a home or apartment and stay in the country
the Indexes of Living Costs Abroad, Quarterfor any length of time.
Allowances, and Hardship Differentials, published by theAnd it's true that this country's popularity has driven up
United States Department of State, and on datareal estate prices. Once plentiful real estate
published by Business International. We also use ourbargains-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 ofPanama still has much to offer, though. Whether you're
living. Weight: 20%enticed by the friendly people or the tropical climate,
* Safety and stability. This measure of unrest in eachPanama is a great retirement destination (remember,
country is based primarily on Interpol data and Stateit's still in our top 5).
Department statistics. It also takes into account the civilWe don't have print space here to talk about every
liberties and political rights granted by eachcountry in our Index, but you can access information
government. Our own experiences and reports fromon all countries featured here at our website. In the
expatriates living in these countries also influence thesearch 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 costNEED TO KNOW
of a typical visit to a general practitioner and the costCountries with special retiree benefits
and coverage particulars of health insurance. Weight:Mexico
20%If you've considered retiring to Mexico, you now have
* Climate. Countries with temperate weatheranother good reason-foreigners who hold a valid
throughout the year, moderate rain fall, and little risk ofresidence visa for Mexico can now take part in
natural disaster come out on top in this category. WeMexico's senior citizens' benefits program.
use data representing each country as a wholeThe 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, doctors'
* Special benefits. This category considersvisits, lab tests, medical devices, pharmacies, and dental
government provisions that make moving to and livingwork); cultural activities like theater tickets and
in each country easier and more affordable forentrance fees to museums and archaeological sites;
foreigners. Taken into account are property rights fortravel-related costs, including airline tickets, buses, car
foreign residents, property tax rates, duty-free importsrentals and purchase, and hotel accommodation.
on personal belongings, currency controls, employmentDiscounts can range up to 50% off the full price of the
restrictions, voting rights, and transportation discountsgood or service. Non-Mexicans who wish to take part
for seniors. Weight: 20%in the program must go to a local office of INAPAM
* Infrastructure. This section considers the number of(Instituto Nacional de las Personas Adultas Mayores)
cars and telephones per 1,000 residents, the length ofto request a membership card. See: for more
railroad track in usable condition, the number of airports,information (in Spanish).
the quality of the country's road and highway network,Malaysia
and the availability of telecommunications. Weight: 5%Three years ago, the government of Malaysia
If health care is a concern, you should know that inlaunched "Malaysia-My Second Home" (MM2H),
much of Mexico the health care is first rate. Privatereplacing the former "Silver Hair" program introduced in
clinics and hospitals are staffed by expert physicians1987. MM2H provides incentives for foreigners,
(many of whom trained in the U.S., Europe, or inparticularly retirees, to live permanently in this country.
Mexico's own world-renowned teaching hospitals), andSuccessful applicants initially receive what is, in effect,
medical care and prescription drugs will cost you only aa five-year visa with unlimited entry/exit privileges.
fraction of what you would pay in the States. In ourThere is no minimum annual residence requirement.
Index, Mexico scores 79 out of a possible 100 points inAfter the first five years, you can apply for permanent
this category.residency. While you're not guaranteed it will be
Mexico is such a diverse nation that everybody cangranted, you can expect automatic renewal of your
find exactly what they want. You don't have tooriginal visa if you continue to meet its conditions. Within
choose between water or mountains; here you cansix months of approval, MM2H residents may bring in
have both. And because of geographic diversity, youhousehold effects duty-free, and import or purchase
can also choose the climate to enjoy during yourone vehicle locally, tax free. Savings on auto taxes can
Mexican retirement: from hot and dry in the north, toamount to thousands of dollars on expensive models.
hot and humid in the south, to spring-like temperaturesOther benefits include exemption from Malaysian
all year round in the Colonial Highlands.income tax on pension and other income remitted into
You can also own the home of your dreams inthe country, plus that on the interest from any fixed
Mexico-for much less than it would cost you mostdeposit made under the MM2H program (a savings of
anywhere in the U.S. or Canada. The real estateabout 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 Estateproperties with a value of not less than $40,000 each.
category. Despite what you may have heard, it's notBanks may advance up to 60%. For information on
too late to buy real estate here.cost of living and many other useful topics, including
You can own beachfront-not just ocean viewdomestic help, see Registration at that website will also
property-in Mexico for less than $100,000.bring you updates on MM2H.
Once you decide to move to Mexico, it's difficult toPanama
know where to go-it's a big country. Below are the 10If you can document a minimum monthly pension of
places we think make the most sense for expatriate$500 (plus another $100 per dependent), you are
living in this country, based on criteria such as healtheligible for a long list of perks in Panama, including:
care, climate, infrastructure, and housing costs. TheseImport duty exemption for household goods; tax
are places our husband-and-wife team in Mexico, Danexemption to import a new car every two years; 50%
Prescher and Suzan Haskins, have personally scoutedoff entertainment anywhere in the country (movies,
and personally recommend above other options in thistheaters, concerts, sporting events); 30% off in-country
great big country. They are: Rosarito Beach, Puertobus, boat, and train fares; 25% off in-country airline
Vallarta, Quer?ro, Mazatlan, M?da, La Paz, Campeche,tickets; 50% off hotel stays Monday through Thursday;
Playa del Carmen/Riviera Maya, Ajijic/Chapala, and15% off hospital bills (if no insurance applies); 10% off
Sayulita/San Pancho (San Francisco). Of course, we'represcription medicines; 20% off medical consultations;
not forgetting San Miguel de Allende, one of Dan and50% reduction in closing costs for home loans; 25%
Suzan's favorite places in Mexico. Suzan recentlydiscounts on utility bills…and many more.
reported of this town: "San Miguel is one of theIreland
prettiest towns in all of Mexico. Stepping into SanIf Ireland is your choice as a retirement haven, you can
Miguel's Centro is like stepping back in time…buttake advantage of the many retirement incentives this
with all of today's modern conveniences."country has to offer, including free health care, free
In second place…public transportation, a fuel allowance, and significant
Ecuadordiscounts on hotel and electricity bills. You're even
Ecuador always does well in our Retirement Index, butallowed to vote in local elections.
this year it moves from 10th position last year to takeBelize
second place this year. If you retire in Ecuador, everyExpats can apply for status as a Qualified Retired
clich?ou've heard about living large on littlePerson (QRP), and, with that status, you can avoid
money-about settling into the lap of luxury on even aBelizean income tax and also import your household
pensioner's budget-is true. Ecuador gets 85 points ingoods tax-free up to a total exemption amount of
our Cost of Living category, making it one of the$15,000. You can also bring in a vehicle (a car, light
world's cheapest places to live. Take $250 out of theaircraft, or boat) tax-free. In fact, every five years you
ATM Monday morning and your expenses arecan import a new vehicle, tax-free.