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