The 10 best places to retire in the world (2025)
Sarah Ebrahem April 11th 2025 - 9 minute read
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 2025, from the tropical climes of Malaysia to the cooler natural beauty of Canada. 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. Panama
Panama has consistently ranked as one of the best places to retire in the world, and it’s easy to see why. It offers retirees an incredible climate, modern infrastructure, and stunning natural beauty.
The country’s Pensionado Program (retirement visa) is one of the most generous in the world, offering discounts on everything from healthcare to entertainment for retirees. In addition to significant savings on medical services, travel, and dining, it also grants permanent residency to those who meet the income requirements.
The cost of living here is also significantly lower than in North America or Europe. For example, renting a one-bedroom apartment in Panama City costs around $900 per month (roughly £700 – check the latest GBP/USD exchange rate for an up-to-date conversion).
Meanwhile, healthcare expenses can be up to 50% cheaper than in the US, making it a fantastic option for those looking to stretch their retirement savings.
Panama City is a bustling metropolis with all the modern conveniences you could ask for, while smaller towns like Boquete offer a cooler climate and a close-knit expat community.
The country’s proximity to the US and use of the US dollar also make it especially appealing to American retirees.
2. Portugal
Portugal has become an increasingly popular retirement destination in recent years, especially among British and American retirees. The Algarve region, with its golden beaches and warm Mediterranean climate, is particularly favoured. Lisbon and Porto offer vibrant culture and modern conveniences, while the quieter regions of the countryside provide peaceful retreats.
One of Portugal’s biggest draws for retirees is its high-quality yet affordable healthcare system, which ranks among the best in Europe. Retirees who become legal residents can access the public healthcare system at low cost, while private healthcare is significantly cheaper than in the UK or US.
The cost of living in Portugal is another major advantage, as it’s around 30% cheaper than the UK. A retired couple can live comfortably for approximately €2,500 (£2,100 or $2,700) per month, including rent, groceries, and leisure activities. See the latest GBP/EUR and USD/EUR exchange rates to check current conversion values.
While Portugal is an excellent retirement destination, there are a few challenges to consider. Learning some Portuguese can be essential in rural areas where English is less commonly spoken. Additionally, bureaucracy can also be slow, especially when dealing with residency permits, banking, and public services.
For non-EU retirees, Portugal’s D7 Visa is a popular route to residency, requiring proof of passive income (such as pensions) rather than investment. The process is straightforward, but applicants must show sufficient funds and spend at least six months per year in Portugal to maintain residency.
Overall, Portugal offers a compelling mix of affordability, quality healthcare, pleasant climate, and rich cultural experiences, making it an attractive option for retirees seeking a high quality of life.
3. Spain
For UK citizens, Spain has long been one of the most popular retirement destinations in the world, and it continues to be a top choice for retirees in 2025. In fact, our British Expat Report 2024 revealed that Spain is the number one destination for Brits thinking about moving overseas.
With its sun-soaked coastlines, rich history, and world-renowned cuisine, Spain boasts an exceptional quality of life. It also offers excellent public transport, affordable property options, and a laid-back pace of life that allows retirees to fully embrace the Mediterranean lifestyle.
Spain’s cost of living is generally lower than in the US and the UK, with rent, food, and healthcare often significantly cheaper. On average, a retired couple can live comfortably in coastal areas such as Andalusia for around €2,000 per month.
Spain’s healthcare system is one of the best in Europe, offering free, high-quality care through its public system. Retirees who become legal residents can access public healthcare for a modest monthly contribution (typically around €60 to €157 per person, depending on age).
However, waiting times for non-urgent procedures can be long, leading many retirees to take out private health insurance. Private healthcare in Spain is still significantly cheaper than in the US, providing faster access to specialists and treatments while ensuring peace of mind.
4. Malaysia
Malaysia is an often-overlooked retirement destination, but those who discover it quickly fall in love. With its tropical climate, low cost of living, and high standard of healthcare, it’s an excellent choice for retirees seeking adventure without sacrificing comfort.
Cities like Kuala Lumpur and Penang are particularly popular, offering modern amenities, lower price tags compared to many Western countries, and English-speaking communities, which can really help when settling into a new country.
The cost of living in Malaysia is significantly lower than in many Western countries. For example, renting a modern, well-appointed three-bedroom condominium in a desirable area can cost between £600 to £800 ($750 to $1,000) per month. Overall, a couple can live comfortably on approximately £2,000 ($2,500) per month, which includes expenses such as rent, utilities, groceries, and leisure activities.
The Malaysia My Second Home (MM2H) visa programme also makes it easier for retirees to settle here long-term, and the country’s excellent infrastructure ensures that daily life is smooth and hassle-free.
However, it’s important to consider Malaysia’s tropical climate, which features high temperatures and humidity year-round. Temperatures typically range between 25°C and 35°C (77°F to 95°F), with humidity averaging around 80%. While this climate appeals to many, the consistent heat and humidity can be challenging for some.
Additionally, Malaysia experiences seasonal monsoon rains, with the east coast receiving heavier rainfall between November and February, and the west coast experiencing wetter conditions from April to October.
5. Australia
Australia is a dream retirement destination for many, offering a high standard of living, breathtaking landscapes, and a relaxed lifestyle. British retirees in particular are drawn to Australia for its familiar culture, warm climate, and excellent healthcare system.
One major advantage of retiring in Australia is its incredible outdoor lifestyle, which promotes health and well-being. With its vast beaches, national parks, and year-round sunshine in many regions, retirees can enjoy an active lifestyle with opportunities for swimming, hiking, and golfing. Many cities and towns also have excellent public parks, walking trails, and community facilities, making it easy to stay fit and socially connected while soaking up Australia’s stunning natural beauty.
However, the cost of living in major cities like Sydney and Melbourne is high, with rent and groceries significantly more expensive than in the UK. For instance, renting a one-bedroom apartment in Sydney’s city centre can cost around AU$2,700 per month (around £1,400 or $1,750 – check the latest GBP/AUD and USD/AUD rates). Likewise, buying property in Australia can be costly and complicated.
Despite higher costs in some parts of the country, Australia’s overall quality of life, outdoor lifestyle, and excellent public services still make it one of the best places to retire in the world. In fact, it even snagged the number two spot that Brits want to move to in our 2024 Expat Report.
6. Canada
For those who prefer cooler climates and breathtaking natural scenery, Canada is an outstanding retirement destination. The country boasts some of the best healthcare services in the world, a safe and welcoming environment, and a high standard of living. No wonder it came third in our Expat Report.
Canada’s diverse landscapes – ranging from the Rocky Mountains to picturesque coastal towns – mean retirees have plenty of options when choosing their ideal setting. Cities like Victoria, Vancouver, and Halifax are particularly popular among retirees due to their mild climates and vibrant communities.
While the cost of living is high in cities like Vancouver, retirees can find more affordable options in smaller towns, with a retired couple’s monthly budget typically ranging from CA$3,000 to CA$4,500 (£1,700 to £2,500), depending on location. View the latest GBP/CAD and USD/CAD exchange rates.
Canada’s healthcare system, one of the best in the world, is publicly funded and provides high-quality care. However, non-residents may need to apply for private insurance for additional coverage.
7. 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 excellent healthcare system, it provides a balance of modern conveniences and unspoiled natural beauty.
Cities like Auckland, Wellington, and Christchurch offer vibrant cultural scenes while still maintaining a relaxed, small-town charm. The country’s strong emphasis on the outdoors is a major draw for retirees, with 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$1,800 and NZ$2,200 (£850 to £1,000) per month. Grocery expenses for a couple typically range between NZ$800 and NZ$1,000 monthly. Check out live rates for GBP/NZD and USD/NZD.
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 for living expenses, and 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 ideal place to spend their later years. For nature-lovers and adventure-seekers, New Zealand offers an unparalleled setting to enjoy retirement.
8. France
Whether it’s the charming countryside of Provence, the glamour of the French Riviera, or the cultural richness of Paris, France offers endless opportunities for a fulfilling retirement. The country boasts an excellent healthcare system, delicious food, and a lifestyle that encourages relaxation and enjoyment.
The cost of living in France varies greatly by region. In rural areas like the Dordogne, long-term rentals for one-bedroom cottages can range from €550 to €800 per month, depending on the property’s features and location. Conversely, in Paris, the average rent for a one-bedroom furnished apartment ranges from €1,300 to €3,000 per month.
Navigating France’s bureaucracy can be challenging, and tax obligations may vary based on residency status. However, retirees who overcome these administrative hurdles are rewarded with an enviable lifestyle enriched by world-class wine, cuisine, and cultural experiences.
Whether you’re seeking a budget-friendly rural retreat or an upscale urban experience, France offers a retirement destination to match your aspirations.
9. Costa Rica
Costa Rica has become an increasingly popular destination for retirees seeking a tropical paradise with an affordable cost of living. Embracing the ‘Pura Vida’ (pure life) lifestyle, the country offers lush rainforests, stunning beaches, and welcoming locals, making settling in a breeze.
A retired couple can live comfortably on $2,000 to $3,000 per month, covering rent, utilities, food, and healthcare. Renting a one-bedroom apartment near a city centre averages around $541 per month, significantly less than in the UK and the US.
Costa Rica also boasts a high-quality healthcare system, with affordable access to both public and private care. The state-run Caja Costarricense de Seguro Social (CCSS) provides universal healthcare, while private options remain reasonably priced, with many doctors trained internationally.
The country’s Pensionado Visa Program makes relocation straightforward. To qualify, retirees need a lifetime pension or monthly income of at least $1,000, making Costa Rica an accessible choice for many. A strong expat community adds to its appeal, particularly in beachside towns known for their affordability and social atmosphere.
Whether you prefer the warm coastal areas or the cooler highlands, Costa Rica offers a diverse range of environments. With its low cost of living, excellent healthcare, and welcoming atmosphere, it’s an ideal destination for retirees looking to enjoy a relaxed and fulfilling lifestyle.
10. Italy
From the rolling hills of Tuscany to the Amalfi Coast, Italy offers some stunning places to settle down. Its relaxed pace of life, excellent healthcare, and deep cultural roots make it an appealing choice for retirement.
The cost of living varies widely. In major cities like Rome and Milan, renting a one-bedroom apartment costs around €1,000, while in smaller towns like Umbria or Puglia, it can be as low as €500. For non-EU citizens, retiring in Italy typically requires an Elective Residency Visa (ERV), which demands proof of financial self-sufficiency – around €31,000 per year for individuals – plus accommodation and private health insurance.
Italy offers a 7% flat tax on foreign income for retirees settling in specific southern regions, making it an attractive option for those seeking tax benefits. However, bureaucracy and property taxes can be complex, so it’s best to get expert advice on how to navigate the red tape.
Make your retirement savings go further
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Written by
Sarah Ebrahem