| The World's Top Retirement Havens in 2007 | | | | covered for the week. In fact, we ranked Ecuador as |
| By Laura Sheridan | | | | the world's best retirement haven in 1999, after it |
| Whether your retirement is fast approaching or just | | | | weathered 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-flung | | | | prosper. |
| tropical haven. But moving to a country that you know | | | | Of course, low prices alone do not make for an ideal |
| little about is a lot of hassle, right? It's probably not | | | | retirement or investment destination. There are plenty |
| worth the time and effort, you think. Besides, all your | | | | of 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 your | | | | Ecuador. |
| own shores you'll find that many countries around the | | | | It's hard to pinpoint the best reason for retiring to |
| world offer far greater benefits and advantages for | | | | Ecuador, 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 retirement | | | | also offers a high quality of life. This is no isolated |
| lifestyle is to choose the retirement destination offering | | | | backwater. It's a land of opportunity, where a middle |
| you more of what you want at the best price. It's a | | | | class is forming. After waking from a long economic |
| question of priorities. What's important to you? Is cost | | | | slumber, 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 and | | | | consider Ecuador: airfares to North America and |
| infrastructure? Proximity to the States and Canada | | | | Europe 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 for | | | | utilities, and entertainment. |
| your future. Like every phase in your life, you'll be | | | | And 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 Retirement | | | | retirement especially appealing. Following the late-1990s' |
| Index, we look closely, specifically, at the best | | | | debt default, Ecuador decided to adopt the U.S. dollar |
| opportunities worldwide for retirement living. Where will | | | | as its official currency, which eliminates currency risk. |
| the pensioner's dollars go furthest? Which country is | | | | Inflation is less than 3% and most economic indicators |
| the safest? Where is the health care best? We give | | | | are positive. |
| top priority to those things that matter most to anyone | | | | Top for Europe |
| planning for retirement, including programs of special | | | | Italy comes third in our Index this year with high scores |
| benefits for retirees (tax breaks, discounts, and | | | | across the board. It's difficult to figure out whereabouts |
| freebies, for example, that various governments | | | | in Italy you picture yourself living-there is probably more |
| proffer to residents, sometimes specifically to foreign | | | | beauty per square mile here than in any other corner |
| residents in an effort to attract investment and | | | | of 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 up | | | | International Living recommends two places: Umbria in |
| to you to decide what your main priorities are before | | | | central 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 winner | | | | expats seeking farmhouses and other rural properties, |
| Moving up four places to take our top spot as the | | | | prices 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-old | | | | rumpled hills crowned with fortified towns and |
| traditions and contemporary lifestyles. Moving to | | | | higgledly-piggledly villages. From certain vantage points, |
| Mexico means you can still have all of the amenities | | | | you can see several hill towns at a time. |
| you grew accustomed to north of the border: cable | | | | Many 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 can | | | | Orvieto, and Norcia are every bit as beautiful and as |
| even bring all of your favorite things with you without | | | | historic 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 the | | | | Monteleone 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 your | | | | has two bedrooms and one bathroom, plus a |
| retirement here, you'll have time to volunteer at the | | | | ready-made vegetable garden. There's another |
| local school, time to golf in the mornings, time to relax | | | | apartment 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, mountain | | | | Calabria's shores are lapped by the Tyrrhenian Sea on |
| climbing, parasailing, collecting crafts, visiting | | | | the 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 can | | | | Scalea, 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 scored | | | | Why Panama fell from glory? |
| * Real estate. Countries where real estate prices are | | | | Panama won our Retirement Index for six years in a |
| low and the purchase of real estate is relatively easy | | | | row. But, it's fallen from the top spot in 2007 and is |
| receive the highest scores. We use our own | | | | now in fourth place. Why? Panama still has the same |
| experiences plus reports from our contributing editors | | | | great retiree benefits…this hasn't changed since |
| and real estate contacts around the world to rate | | | | last 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 category | | | | pockets deep enough to afford a $40,000 investment |
| considers the number of newspapers per 1,000 | | | | in a forestry project or a $200,000 investment in real |
| citizens, the number of museums and cinemas per | | | | estate or a government bank CD, it can be difficult to |
| capita, the number of university students, the literacy | | | | get a resident visa in Panama. Since the government |
| rate, and the variety of cultural and recreational | | | | of 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 from | | | | to rent a home or apartment and stay in the country |
| the Indexes of Living Costs Abroad, Quarter | | | | for any length of time. |
| Allowances, and Hardship Differentials, published by the | | | | And it's true that this country's popularity has driven up |
| United States Department of State, and on data | | | | 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 of | | | | Panama 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 each | | | | Panama is a great retirement destination (remember, |
| country is based primarily on Interpol data and State | | | | it's still in our top 5). |
| Department statistics. It also takes into account the civil | | | | We don't have print space here to talk about every |
| 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 cost | | | | NEED TO KNOW |
| of a typical visit to a general practitioner and the cost | | | | Countries 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 weather | | | | another good reason-foreigners who hold a valid |
| throughout the year, moderate rain fall, and little risk of | | | | residence visa for Mexico can now take part in |
| natural disaster come out on top in this category. We | | | | Mexico's senior citizens' benefits program. |
| 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, doctors' |
| * Special benefits. This category considers | | | | visits, lab tests, medical devices, pharmacies, and dental |
| government provisions that make moving to and living | | | | work); cultural activities like theater tickets and |
| in each country easier and more affordable for | | | | entrance fees to museums and archaeological sites; |
| foreigners. Taken into account are property rights for | | | | travel-related costs, including airline tickets, buses, car |
| foreign residents, property tax rates, duty-free imports | | | | rentals and purchase, and hotel accommodation. |
| on personal belongings, currency controls, employment | | | | Discounts can range up to 50% off the full price of the |
| restrictions, voting rights, and transportation discounts | | | | good 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 of | | | | to 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 in | | | | launched "Malaysia-My Second Home" (MM2H), |
| much of Mexico the health care is first rate. Private | | | | replacing the former "Silver Hair" program introduced in |
| clinics and hospitals are staffed by expert physicians | | | | 1987. MM2H provides incentives for foreigners, |
| (many of whom trained in the U.S., Europe, or in | | | | particularly retirees, to live permanently in this country. |
| Mexico's own world-renowned teaching hospitals), and | | | | Successful applicants initially receive what is, in effect, |
| medical care and prescription drugs will cost you only a | | | | a five-year visa with unlimited entry/exit privileges. |
| fraction of what you would pay in the States. In our | | | | There is no minimum annual residence requirement. |
| Index, Mexico scores 79 out of a possible 100 points in | | | | After 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 can | | | | granted, you can expect automatic renewal of your |
| find exactly what they want. You don't have to | | | | original visa if you continue to meet its conditions. Within |
| choose between water or mountains; here you can | | | | six months of approval, MM2H residents may bring in |
| have both. And because of geographic diversity, you | | | | household effects duty-free, and import or purchase |
| can also choose the climate to enjoy during your | | | | one vehicle locally, tax free. Savings on auto taxes can |
| Mexican retirement: from hot and dry in the north, to | | | | amount to thousands of dollars on expensive models. |
| hot and humid in the south, to spring-like temperatures | | | | Other 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 in | | | | the 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 each. |
| category. Despite what you may have heard, it's not | | | | Banks 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 view | | | | domestic 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 to | | | | Panama |
| know where to go-it's a big country. Below are the 10 | | | | If 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 health | | | | eligible for a long list of perks in Panama, including: |
| care, climate, infrastructure, and housing costs. These | | | | Import duty exemption for household goods; tax |
| are places our husband-and-wife team in Mexico, Dan | | | | exemption to import a new car every two years; 50% |
| Prescher and Suzan Haskins, have personally scouted | | | | off entertainment anywhere in the country (movies, |
| and personally recommend above other options in this | | | | theaters, concerts, sporting events); 30% off in-country |
| great big country. They are: Rosarito Beach, Puerto | | | | bus, 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, and | | | | 15% off hospital bills (if no insurance applies); 10% off |
| Sayulita/San Pancho (San Francisco). Of course, we're | | | | prescription medicines; 20% off medical consultations; |
| not forgetting San Miguel de Allende, one of Dan and | | | | 50% reduction in closing costs for home loans; 25% |
| Suzan's favorite places in Mexico. Suzan recently | | | | discounts on utility bills…and many more. |
| reported of this town: "San Miguel is one of the | | | | Ireland |
| prettiest towns in all of Mexico. Stepping into San | | | | If Ireland is your choice as a retirement haven, you can |
| Miguel's Centro is like stepping back in time…but | | | | take 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 |
| Ecuador | | | | discounts on hotel and electricity bills. You're even |
| Ecuador always does well in our Retirement Index, but | | | | allowed to vote in local elections. |
| this year it moves from 10th position last year to take | | | | Belize |
| second place this year. If you retire in Ecuador, every | | | | Expats can apply for status as a Qualified Retired |
| clich?ou've heard about living large on little | | | | Person (QRP), and, with that status, you can avoid |
| money-about settling into the lap of luxury on even a | | | | Belizean income tax and also import your household |
| pensioner's budget-is true. Ecuador gets 85 points in | | | | goods 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 the | | | | aircraft, or boat) tax-free. In fact, every five years you |
| ATM Monday morning and your expenses are | | | | can import a new vehicle, tax-free. |