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