10 Best Places to Retire in 2026

Finding the best places to retire can feel overwhelming – you have the whole world at your fingertips, and deciding on where to spend your later years is a big decision.  

The Annual Global Retirement Index from International Living is updated each year with the best places to retire, based on findings from real correspondents reporting their on-the-ground experience in each destination. Up-to-date cost of living is looked at alongside healthcare, climate and lifestyle options, from how easy it is to make friends to how much the weather changes between seasons.

The index has been going for three decades, and you can explore its latest findings below. Want to take the pressure off and get a taste of your destination first? Discover our suggestions of alternative destinations we also think you’ll love, with itineraries that’ll give you an insight into what each place is really like.  

Best Places to Retire

1. Panama 

At the top of the list of best places to retire is Panama – which might come as a surprise to many. Up from fourth place last year, it’s climbed the ranks due to rising cost of living and lack of housing availability in other, more traditional retirement destinations like Costa Rice, Spain and Portugal (though they’re still high on the list). 

Why does Panama tick all the boxes? A big pull is the Pensionado Visa. If you’ve got a pension of at least $1,000, you can qualify for the pensioner visa in as little as six months. And retiree residents get amazing discounts: 25% off your power bill, 50% off movie and event tickets, 20% off medical consultations and medication, 25% off meals at restaurants – to name a few. “When it comes to true value and honest-to-goodness comfort, Panama is a shining star,” says International Living’s correspondent. Retirees’ costs of living dramatically drop, all while gaining access to excellent healthcare, fast internet and convenient public transportation, no matter if you live in Panama City or rural Boquete. Retirees from the US or Canada can ‘test drive’ living here, as residents from these countries don’t need any visa to spend up to six months in Panama. 

You’ll also love: Argentina/Chile  

From Santiago to the fjords of Torres del Paine National Park, similarly to Panama our Heart of Patagonia tour can help you experience both buzzing city living and rural life (and decide which one is more up your street). Crossing between Argentina and Chile, you’ll learn about artisan horsehair crafts in Santiago and go horseback riding through the sweeping landscape from a working Patagonian ranch. Have your mind blown by the beauty of Los Glaciares National Park with a glacier expert and learn the ecology of the native lenga forest. Your 12-day journey ends in Buenos Aires with an insight into its cultural history and a fiery tango show.  

See it on: Heart of Patagonia 

Porto, Portugal

2. Portugal 

One of Portugal’s biggest draws as a retirement destination is the quality and affordability of its healthcare. Second on this year’s list (it was ranked number one back in 2023), Portugal is flying the flag for Europe, and will suit those who like to feel the seasons throughout the year – though outdoor activities are always on year-round thanks to the mild weather, whether you’re in the warmer south or cooler north.   

Places to live are just as diverse, from the beachy Algarve to lively Lisbon, giving residents access to coastal hikes, medieval towns and countless ‘tabernas’ to sample the country’s famous cuisine and wine. “Portugal stands out for its safety, reasonable cost of living, exceptional healthcare, and welcoming culture,” writes International Living’s correspondent. All this for about one-third of what many retirees would spend in the USA!

You’ll also love: Slovenia  

Slovenia is finally getting some of the love it deserves, but is still a highly underrated destination when it comes to Europe. Nestled between Austria, Italy and Croatia with a small slice of pristine coastline, Slovenia is a visual buffet of natural beauty with diverse scenery that’s a worthy rival of beautiful Portugal. Its landscape can range from carpets of dense forest covering rugged hills, to subterranean caves, as well as lakes, rivers and layers of locall culture in Triglav National Park. 

Its capital, Ljubljana, is the ultimate walkable city with restricted car traffic in the center. Buzzy cafes and restaurants sprawl onto the banks of the Ljubljanica River, while every square in the city features stunning architecture, a slice of the city’s rich history in stone. Whether you want hiking trails, beaches, museums, cafes or restaurants, Slovenia has it all – and you’ll be ahead of the curve, with much of this European beauty (mostly) to yourself.

See it on: Adriatic Escape 

3. Costa Rica 

Coming in third for the best places to retire is Costa Rica – last year’s winner. It’s not hard to imagine why many people want to spend their later years here; spectacular landscapes, varied climates and, of course, the Pura Vida ethos. From beaches to mountains, Costa Rica’s natural beauty is in a league of its own – but the communities here are also part of the pull for retirees. The warmth of the friendly Ticos (as Costa Ricans call themselves) will make anyone feel at home. 

While house prices have risen since borders reopening in 2020, healthcare is high-quality and affordable. Residents can live frugally or luxuriously, while the warm climate offers an endless opportunity of things to do from lazy beach days to hiking through rainforests. “With its biodiversity, stunning landscapes, and warm climate, Costa Rica is a haven for those seeking a slower, healthier pace of life,” notes International Living’s correspondent. Costa Rica is both laid back and full of adventure, with an emphasis on eco-friendly living and conservation. 

You’ll also love: Sri Lanka 

Much like Costa Rica, Sri Lanka is another natural haven when it comes to diversity from  the golden shores of Colombo to the misty highlands of Nuwara Eliya. Get a taste for the outdoors when you travel with us, where you’ll climb the UNESCO-listed Sigiriya Rock Fortress, explore the sacred temples of Kandy and Anuradhapura, and watch Asian elephants roam freely in Yala National Park. 

Discover Sri Lanka’s rich culture and warm hospitality as you meet a practicing monk for a traditional blessing ceremony, visit a working tea estate, and witness the skill of Weligama’s stilt fishermen – plus a Farm -to-Table meal made by the local community in Hiriwadunna, a village that prioritizes sustainable farming practices and the deep-rooted traditions that shape rural life. This unforgettable country isn’t called the Pearl of the Indian Ocean for nothing. 

See it on: Wonders of Sri Lanka 

Riviera Maya, Mexico

4. Mexico 

Mexico has a well-established expat community, in part because of its proximity to the USA; it offers a new, vibrant place to explore at a much more affordable rate, but familiarity is also close by with English spoken throughout expat hubs (Oaxaca) and home comforts from the States easily available.  

There’s something for everyone in Mexico, whether you want to live by the beach, in the mountains, or amid the lush jungle or forests. These places aren’t just beautiful, but encourage a more active lifestyle from walking and hiking to fresh, tropical food on your doorstep. Fresh produce is a luxury in the USA, but in Mexico it’s easily accessible. Pair that with a rich heritage, welcoming locals and some of the best food in the world, and it’s easy to see why Mexico already has an expat community of around 1.6 million U.S. citizens. 

Provence, France

5. France 

So far, tropical, beachside destinations have dominated the list of the best places to retire – but France ranks fifth on this year’s list. It doesn’t just have world-renowned food and wine but healthcare in France is some of the best in the world, and rent is 51% less than in the United States on average. Cities like Paris don’t offer much in terms of savings, but southern France. 

The French Riviera and Provence region is known as the “California of France”, providing over 300 days of sun each year. For those wanting a less balmy climate, southwestern regions like the rolling hills of Dordogne are a little cooler and cheaper. Wherever you choose, retiring in France is all about embracing the joie de vivre.  

Completing International Living’s list of the top 10 best places to retire are Spain, Malaysia, Greece, Italy and Thailand.