Retirement is a new chapter of life – a time to explore, relax, and truly enjoy the fruits of your labour. However, choosing the best place to retire is a big decision, and there are many factors to consider, including cost of living, climate, healthcare, and quality of life.
In this article, we cover what we think are the ten best places to retire in the world in 2026, from the tropical climes of Thailand to the timeless appeal of Spain. Whether you're looking for sun-drenched beaches, vibrant city life, or a peaceful countryside retreat, there's a perfect retirement destination waiting for you.
1. Spain
Spain has long been one of the most popular places in the world to retire, and in 2026 it stands out as the strongest all-round destination for retirees seeking sunshine, stability, and an exceptional quality of life.
With its sun-soaked coastlines, rich history, and world-renowned cuisine, Spain offers a lifestyle that balances relaxation with excellent infrastructure. Reliable public transport, walkable towns and cities, and a slower pace of life make it easy for retirees to settle in and fully embrace the Mediterranean way of living.
Spain’s cost of living is generally lower than in the UK and the US, particularly outside major cities and high-demand coastal hotspots. A retired couple can live comfortably in regions such as Andalusia, Valencia, or Murcia from around €2,000 per month, depending on location and lifestyle. This equates to roughly £1,700 or $2,150 per month, making Spain an affordable option for retirees moving from the UK or the US. See the latest GBP/EUR and USD/EUR exchange rates for current conversion values.
Spain’s healthcare system is among the best in Europe, offering high-quality care through its public system. Retirees who become legal residents can access public healthcare for a modest monthly contribution (typically between €60 and €157 per person, depending on age and circumstances).
Waiting times for non-urgent procedures can be longer, so many retirees choose to supplement public healthcare with private health insurance. Private healthcare in Spain remains affordable by international standards and provides faster access to specialists and treatments.
Overall, Spain’s combination of climate, healthcare quality, affordability, and accessibility makes it the most well-rounded retirement destination in the world – and a deserving number one for 2026.
2. Panama
Panama has long been recognised as one of the most retiree-friendly countries in the world, offering a compelling mix of warm climate, modern infrastructure, and striking natural beauty.
One of its biggest draws is the Pensionado Program, one of the most established retirement visa schemes globally. It provides retirees with a wide range of discounts on services such as healthcare, travel, utilities, and entertainment. Those who meet the income requirements can also apply for permanent residency, making it a practical long-term option for retirement abroad.
The cost of living in Panama is generally lower than in North America and much of Europe. In Panama City, renting a one-bedroom apartment typically starts at around $1,200 per month (roughly £950), depending on location and amenities. Check the latest GBP/USD exchange rate for up-to-date conversion values.
Healthcare is another major advantage. Medical care in Panama is generally significantly more affordable than in the United States, particularly for routine consultations and many common procedures. Private hospitals in Panama City and other major urban areas offer high standards of care, and English-speaking doctors and staff are widely available in facilities that serve international patients.
Panama City itself is a vibrant, modern capital with excellent shopping, dining, and transport links, while smaller towns such as Boquete appeal to retirees seeking a cooler climate and a strong sense of community.
The country’s stable economy, proximity to North America, and use of the US dollar further simplify day-to-day living for retirees managing finances from abroad.
3. Portugal
Portugal remains one of Europe’s most appealing retirement destinations, particularly for British and American retirees seeking a relaxed lifestyle, a mild climate, and strong public services. Over the past decade, it has evolved from an emerging retirement hotspot into a well-established choice, and while some of the exceptional bargains of earlier years have faded, Portugal continues to offer a high quality of life that justifies its enduring popularity.
The Algarve remains a favourite thanks to its golden beaches and warm Mediterranean climate, while Lisbon and Porto provide vibrant culture, history, and modern conveniences. For retirees looking for better value and a slower pace of life, inland and northern regions still offer more affordable alternatives.
Healthcare is one of Portugal’s strongest assets. The country’s healthcare system ranks among the best in Europe, and retirees who become legal residents can access the public system at relatively low cost. Private healthcare is also widely available and significantly more affordable than in the UK or the US, leading many retirees to use a combination of both.
While the cost of living in Portugal is no longer the bargain it once was, it still remains lower than in much of Western Europe. A retired couple can live comfortably on around €2,500 per month, including rent, groceries, and leisure activities, especially outside the most in-demand areas. At current exchange rates, this is roughly £2,100 or $2,700.
There are some practical considerations. Learning basic Portuguese is often necessary outside major cities, and bureaucracy can be slow when dealing with residency permits, banking, and public services.
For non-EU retirees, Portugal’s D7 Visa remains a popular route to residency, requiring proof of stable passive income, such as pensions. Applicants must demonstrate sufficient funds and are typically expected to live in Portugal for most of the year.
While Portugal’s ‘golden years’ as an under-the-radar retirement bargain may be over, its blend of climate, healthcare quality, cultural richness, and long-term stability ensures it still earns its place among the very best countries in the world to retire.
4. France
France remains one of the most rewarding places in the world to retire, particularly for those who value healthcare quality, cultural richness, and long-term stability. From the rolling countryside of Provence and the Dordogne to the elegance of the French Riviera and the cultural depth of Paris, France offers an exceptional variety of retirement lifestyles.
One of France’s greatest strengths is its healthcare system, widely regarded as one of the best in the world. Retirees who become legal residents can access high-quality public healthcare at relatively low cost, with many choosing to supplement this with private insurance for faster access or additional coverage.
The cost of living in France varies significantly by region. In truly rural areas such as parts of the Dordogne or other countryside regions of central and southwestern France, long-term rentals for one-bedroom apartments are often found in the €380-€600 per month range.
In contrast, major cities remain expensive. In Paris, one-bedroom apartments in central or highly desirable neighbourhoods often range from around €1,300 to €3,000 per month, making urban living less practical for cost-conscious retirees compared with more affordable regions of France.
France’s administrative system can be complex, and tax obligations depend on residency status and income sources. However, retirees willing to navigate the paperwork are rewarded with a high standard of living, excellent infrastructure, and a culture that places genuine value on food, leisure, and quality of life.
Whether you’re seeking a peaceful rural retreat or a more refined urban lifestyle, France offers a depth, stability, and healthcare standard that few countries can match – qualities that secure its place near the top of the retirement rankings for 2026.
5. Thailand
Thailand has long been one of Asia’s most popular retirement destinations, and in 2026 it continues to stand out. For retirees seeking a warm climate, vibrant culture, and a high standard of living at a manageable cost, Thailand remains a compelling choice.
One of Thailand’s biggest advantages is its healthcare system. Private hospitals in cities such as Bangkok and Chiang Mai are internationally recognised for their high standards of care, modern facilities, and English-speaking medical staff. Healthcare costs are generally far lower than in Western countries, making private care accessible to many retirees without the need for expensive insurance plans.
In fact, the overall cost of living in Thailand is a major draw. Outside the most tourist-heavy areas, a retired couple can live comfortably on around ฿65,000 to ฿90,000 (roughly £1,500 to £2,000, or $1,900 to $2,600) per month, covering rent, utilities, food, transport, and leisure. See the latest GBP/THB and USD/THB exchange rates for current conversion values.
Thailand offers clear and long-established residency options for retirees. The Retirement Visa (Non-Immigrant O or O-A) is specifically designed for older applicants and requires proof of income or savings rather than large-scale investment.
There are, however, practical considerations. Thailand’s hot and humid climate may not suit everyone, and air quality can be an issue in some regions at certain times of year. Cultural differences and language barriers also exist, though these are softened by Thailand’s long experience hosting international residents and retirees.
6. Greece
Greece has emerged as an increasingly attractive retirement destination. While it may not yet match the administrative ease or healthcare depth of some higher-ranked countries, its slower lifestyle and affordability continue to draw retirees from across Europe and beyond.
The country’s appeal lies largely in its diversity. Retirees can choose between vibrant cities such as Athens and Thessaloniki, picturesque mainland towns, or island communities offering a more tranquil way of life. Outside the most popular tourist hotspots, Greece remains relatively affordable, particularly in mainland regions and lesser-known islands.
The cost of living in Greece is generally lower than in much of Western Europe. A retired couple can live comfortably on around €2,000 to €2,400 per month, depending on location and lifestyle. Housing costs vary widely, with long-term rentals in smaller towns and rural areas often significantly cheaper than in major cities or well-known islands.
Greece’s healthcare system provides universal public coverage, and retirees who become legal residents can access public healthcare at low cost. Private healthcare is also available, particularly in larger cities, and is commonly used by expatriates for faster access and greater choice. Healthcare quality is generally good, though availability can be more limited outside urban centres.
For non-EU retirees, Greece offers a Financially Independent Person (FIP) visa, which allows residency without the need for employment. Applicants must demonstrate sufficient passive income and maintain private health insurance. While bureaucracy can be slow, residency rules are clear and increasingly well-trodden.
7. Mexico
Mexico remains one of the most practical and affordable retirement destinations in the world, particularly for retirees seeking proximity to North America. With its diverse geography, rich culture, and well-established expat communities, Mexico offers a wide range of retirement lifestyles to suit different preferences and budgets.
Popular retirement areas include colonial cities such as San Miguel de Allende and Guanajuato, coastal towns along the Pacific and Caribbean coasts, and major urban centres like Mexico City, which offers world-class healthcare and cultural amenities. Choosing the right location is essential, as costs, climate, and infrastructure can vary significantly from region to region.
The cost of living in Mexico is generally lower than in the US and many parts of Europe. Outside the most in-demand expat hubs, a retired couple can live comfortably on around $2,000 to $2,500 per month, including rent, utilities, food, and leisure. Housing costs are particularly attractive, with long-term rentals in many cities and towns available at prices far below those found in comparable North American or European locations.
Healthcare is a major strength. Mexico has an extensive private healthcare sector offering high-quality care at affordable prices, particularly in larger cities and established expat areas. Many doctors are internationally trained, and private hospitals often provide modern facilities with English-speaking staff.
Mexico offers straightforward residency options for retirees. Temporary and permanent resident visas are available based on income or savings, without the need for large investments or property purchases. While administrative processes can be bureaucratic, they are well established and widely used by foreign retirees.
While safety concerns are often raised, experiences vary widely by region. Many retirement destinations are considered safe and welcoming, particularly in areas with long-standing international communities. Retirees who choose their location carefully and integrate into local communities often find Mexico to be a rewarding and affordable place to enjoy retirement.
8. Italy
From the rolling hills of Tuscany to the dramatic coastline of the Amalfi Coast, Italy offers a rich and rewarding setting for retirement. Its slower pace of life, strong sense of community, and deep cultural heritage continue to attract retirees seeking more than just sunshine.
The cost of living in Italy varies significantly by region. In major cities such as Rome and Milan, renting a one-bedroom apartment typically starts from around €1,000 to €1,700 per month, particularly in well-located or furnished properties. In smaller towns and rural areas, including parts of Umbria, Abruzzo, or Puglia, long-term rentals can still be found from around €500 to €900 per month, offering better value for retirees willing to live away from major tourist centres.
Italy’s healthcare system provides universal public coverage and is generally of high quality, particularly in the north and in larger cities. Retirees who become legal residents can access public healthcare, though many also choose private care for faster access and additional flexibility.
For non-EU citizens, retiring in Italy typically requires an Elective Residency Visa (ERV). This visa is designed for financially independent retirees and requires proof of stable passive income, suitable accommodation, and private health insurance. While income requirements vary by consulate, applicants should expect to demonstrate a comfortable level of self-sufficiency rather than meeting a strict minimum threshold.
Italy also offers a 7% flat tax on foreign income for retirees who relocate to certain southern regions and smaller municipalities, making it an attractive option for those able to meet the scheme’s conditions. However, bureaucracy, tax planning, and property regulations can be complex, so professional advice is often essential.
9. Costa Rica
Costa Rica remains a popular retirement destination for those seeking a tropical climate, political stability, and a welcoming lifestyle. Known for its ‘Pura Vida’ way of life, the country offers lush rainforests, beautiful beaches, and friendly communities, making it easy for retirees to settle in.
The cost of living in Costa Rica has risen in recent years but is still generally lower than in the United States. A retired couple can live comfortably on around $2,000 to $3,000 per month, covering rent, utilities, food, transport, and healthcare, depending on location and lifestyle. Long-term rentals for a one-bedroom apartment typically range from around $500 to $900 per month, with higher prices in popular coastal and expat areas.
Costa Rica’s healthcare system is another major draw. Residents can access the public healthcare system through the Caja Costarricense de Seguro Social (CCSS), with contributions based on income, while private healthcare remains affordable and widely used by expatriates, particularly for faster access to specialists.
The country’s Pensionado Visa makes retirement relatively straightforward. Applicants must demonstrate a guaranteed lifetime pension or monthly income of at least $1,000, and many retirees benefit from Costa Rica’s well-established expat communities, especially in the Central Valley and along the Pacific coast.
Whether you prefer beachside living or the cooler highlands, Costa Rica offers a range of environments and a relaxed pace of life, making it a solid retirement option in 2026.
10. New Zealand
New Zealand is an exceptional choice for retirees seeking a peaceful, scenic, and high-quality lifestyle. Known for its breathtaking landscapes, welcoming communities, and strong healthcare system, it offers a balance of modern conveniences and unspoiled natural beauty.
Cities such as Auckland, Wellington, and Christchurch provide vibrant cultural scenes alongside a relaxed pace of life. The country’s strong emphasis on the outdoors is a major draw, with ample opportunities for hiking, boating, and exploring its world-famous national parks.
The cost of living varies by region, but in Auckland, renting a one-bedroom apartment typically costs between NZ$2,000 and NZ$2,500 per month, depending on location and quality. Grocery expenses for a couple generally range from around NZ$900 to NZ$1,100 per month. Check out live rates for GBP/NZD and USD/NZD for current conversion values.
However, New Zealand’s retirement visa options have stringent financial requirements, making them more accessible to wealthier retirees. The Temporary Retirement Visitor Visa requires applicants to invest NZ$750,000 in New Zealand for two years, have an additional NZ$500,000 available for living expenses, and demonstrate an annual income of at least NZ$60,000.
Alternatively, the Parent Retirement Resident Visa – for retirees with an adult child already living in New Zealand – requires an investment of NZ$1 million for four years, NZ$500,000 in settlement funds, and the same annual income requirement.
Despite these financial hurdles, many expatriates find that New Zealand’s safety, clean environment, and outdoor-focused lifestyle make it an exceptional place to spend their later years. For nature lovers and those who prioritise quality of life over affordability, New Zealand offers an unparalleled retirement setting.
Make your retirement savings go further
If you’re planning to retire abroad, managing your money transfers effectively is essential. From buying overseas property to covering daily expenses, securing the best exchange rates can make a significant difference. That’s where Currencies Direct comes in.
We offer highly competitive exchange rates, zero transfer fees, and a dedicated account manager to guide you through the process, ensuring your international payments are seamless and cost-effective.
Currency markets are always moving, and exchange rate fluctuations can have a major impact on your budget. For example, GBP/EUR dropped from €1.19 to €1.15 between May and July 2025. If you were transferring £300,000 to buy a home in Spain, this four-cent drop translates to a €12,000 difference in the amount you receive – enough to cover legal fees, taxes, or even furnish your new home.
With Currencies Direct, you can get expert insights and market updates to help you time your transfers wisely. You can even use a forward contract to lock in a favourable rate in advance, protecting your budget from market volatility.
Don’t leave your international transfers to chance. Get in touch with our team today or create a free account in minutes to start saving on your overseas transfers.
