A new report has revealed the best places to retire in 2025.
Before considering a move, Britons are urged to consider their state pension, and private pensions to ensure they have enough money to support their lifestyles abroad.
The Annual Global Retirement Index for 2025, by International Living (IL) evaluates 20 carefully selected countries across seven key categories to help retirees identify locations where their money stretches further.
These crucial categories include housing, visas and benefits, cost of living, healthcare, development and governance, climate, and community integration.
The assessment process relies heavily on insights from on-the-ground correspondents who are expats themselves, providing real-world data about daily living costs and experiences.
Jennifer Stevens, executive editor at IL said: “This year’s Index showcases safe, welcoming, good-value places where retirees can live better for less—while enjoying an adventure and finding like-minded community in surrounds that suit them.”
The index aims to showcase safe, welcoming destinations where retirees can enhance their lifestyle whilst embarking on new adventures within like-minded communities.
Britons are looking for the best ways to bolster their retirement prospects GETTYThe Top 10 Retirement Destinations for 2025:
- Panama
- Portugal
- Costa Rica
- Mexico
- France
- Spain
- Malaysia
- Greece
- Italy
- Thailand
Panama has claimed the top spot in this year’s rankings, rising from fourth place in 2024, largely due to its exceptional benefits for retirees.
The country’s renowned Pensionado Visa programme offers permanent residency to retirees with a monthly pension of just £780 ($1,000), or £975 ($1,250) for couples.
This visa provides substantial discounts, including 50 per cent off cinema tickets, 25 per cent off utility bills, and 20 per cent off prescription medications. Most couples can live comfortably in Panama on £1,950 to £2,340 ($2,500 to $3,000) monthly, covering all living expenses.
The country boasts excellent healthcare, particularly in Panama City, where hospitals feature modern technology and English-speaking medical staff.
Jessica Ramesch, IL Panama Editor said: “Panama’s location, safety, and affordability make it an exceptional choice for retirees looking to maximise their lifestyle without breaking the bank.”
The country offers diverse lifestyle options, from urban living in Panama City to beachside communities in Coronado and mountain retreats in Boquete.
Portugal has secured second place, maintaining its position as Europe’s top-performing destination in the index.
Terry Coles, IL Portugal contributor said: “Portugal is an enduring favourite among retirees, known for its stunning coastlines, historic charm, and affordable living.”
A couple can live comfortably in Portugal for £1,950 to £2,340 monthly, with expenses typically running about one-third of U.S. costs.
Costa Rica, last year’s winner, now ranks third, celebrated for its “Pura Vida” lifestyle and natural beauty.
Bekah Bottone, IL Costa Rica correspondent said: “Whether you love the beach, the mountains, or both, Costa Rica offers an incredible quality of life.”
Costa Rican living costs vary significantly. Karen Lynn Mountain, a 66-year-old retiree, lives comfortably in Atenas on about £1,560 monthly, including £430 for rent and £86 for healthcare, Bottone explained.
The country particularly appeals to eco-conscious retirees, offering sustainable living options and organic markets.
Mexico, ranking fourth, stands out for its established expat communities and affordability.
“Mexico gives you a taste of adventure with the comfort of familiarity”, notes Bel Woodhouse, IL Mexico correspondent.
Housing costs are particularly attractive, with one-bedroom waterfront apartments in Cozumel available for just £390 ($500) monthly.
France, in fifth position, offers surprising value despite its reputation for luxury living.
“Food costs are another area where retirees can save. A couple can expect to spend £470 ($600) a month on groceries, and it’s still possible to enjoy a three-course gourmet meal at a restaurant for £28 ($36)”, explains Tuula Rampont, IL France correspondent.
French healthcare is notably affordable, with doctor visits costing £20 ($26) and specialist appointments £63 ($80), with 70% of costs reimbursed.
A couple can live comfortably in France on £1,560 ($2,000) monthly, excluding rent, with two-bedroom rentals in southern France averaging £740 ($950).
Spain, ranked sixth, combines Mediterranean lifestyle with excellent healthcare and affordable living costs. Malaysia, the highest-ranked Asian nation at seventh place, offers exceptional value for money and modern amenities.
Greece secures eighth position, attracting retirees with its relaxed pace of life and low living costs, particularly on islands like Corfu.
Italy ranks ninth, celebrated for its emphasis on slow living and culinary excellence. The country has been actively courting foreigners with attractive housing schemes, including offers to pay people to relocate.
Thailand rounds out the top 10, distinguished by its ultra-low cost of living and excellent healthcare system.
Each destination offers unique advantages for retirees, from Spain’s cultural treasures to Malaysia’s welcoming multicultural society.
These locations provide varied options for retirees seeking different lifestyle experiences, whether urban living or beachside retreats.
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