Inflation and rising healthcare costs have become a growing concern for retirees in the United States. Fidelity’s 2025 Retiree Health Care Cost Estimate found that a 65‑year‑old retiring today can expect to spend an average of $172,500 on healthcare throughout retirement, a figure that continues to climb each year. With everyday expenses stretching budgets, it’s no surprise that many Americans are considering whether retiring abroad could offer a more affordable, fulfilling lifestyle.
That’s where International Living’s 2026 Annual Global Retirement Index comes in. Now in its 35th year, the index ranks destinations worldwide based on factors like cost of living, healthcare, housing, climate, and ease of integration. For the first time, Greece has claimed the top spot, signaling a shift in Europe’s retirement landscape.
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So, where are the best countries to retire in 2026? Let’s take a closer look at the top 10 destinations highlighted in the study.
The 10 Best Countries to Retire in 2026
International Living’s 2026 index reveals which destinations stand out for retirees this year.
1. Greece
Greece’s rise to number one reflects its blend of affordability, excellent private healthcare, and accessible residency options. With more than 8,000 miles of coastline and over 300 days of sunshine a year, retirees enjoy a Mediterranean lifestyle at a fraction of U.S. costs. Housing outside major cities remains reasonably priced, and the Golden Visa program offers a relatively straightforward path for property buyers.
Beyond the practical benefits, daily life is enriched by culture and cuisine, from seaside tavernas to traditional dishes that define the Mediterranean diet. For a deeper taste of the flavors that shape everyday life, see our guide to Greek cuisine.
2. Panama
Panama continues to attract retirees with its famed Pensionado program, which offers discounts on everything from medical care to entertainment. The country combines modern infrastructure with tropical beauty, and its proximity to the U.S. makes travel easy. Housing costs are generally lower than in the U.S., and many retirees find strong support in expat communities.
Retirees also enjoy weekend escapes to mountain towns like Boquete, known for its cool climate and thriving coffee culture, offering a refreshing contrast to the country’s coastal heat.
3. Costa Rica
Costa Rica’s “pura vida” lifestyle is more than a slogan — it’s a way of life. Retirees benefit from a strong healthcare system, an eco‑friendly culture, and abundant natural beauty. Living costs are often lower than in the U.S., and Costa Rica enjoys a reputation for stability and safety compared to many regional peers.
Daily routines often include visits to local farmers’ markets, enjoying fresh tropical produce, and exploring national parks teeming with wildlife, from toucans to sloths.
4. Portugal
Long a leader in retirement rankings, Portugal remains a top choice thanks to its rich culture, excellent healthcare, and warm climate. Rising costs and visa changes have nudged it down the list, but retirees often find better value in smaller towns and coastal communities compared to Lisbon or Porto. The country’s vibrant food scene and welcoming locals add to its charm.
Retirees often enjoy strolling cobblestone streets, sampling pastel de nata at neighborhood cafés, and joining lively festivals that bring communities together throughout the year.
5. Mexico
Mexico offers retirees affordability, diverse landscapes, and vibrant expat hubs. From coastal towns to colonial cities, housing costs are low compared to the U.S. Private healthcare is generally more affordable than in the U.S., and many retirees find it accessible in larger cities. Communities like San Miguel de Allende and Mérida are especially popular.
Everyday life is infused with cultural vibrancy, from savoring street tacos at bustling markets to joining colorful fiestas that celebrate local traditions. Retirees find themselves immersed in a warm and lively atmosphere.
6. Italy
Italy combines historic charm with modern healthcare. Retirees often find more affordable housing outside major cities, though costs vary by region. Access to high‑quality medical care is a strong draw, and daily life is steeped in art, food, and tradition. The slower pace of rural regions offers comfort without sacrificing culture.
For those curious about exploring beyond retirement living, the country offers remarkable destinations, from iconic cities to hidden gems. Discover more in our guide to 16 unforgettable places in Italy.
7. France
France’s healthcare system consistently ranks among the best in the world, and its quality of life is unmatched. Retirees enjoy France’s cultural richness and diverse regions and benefit from its strong infrastructure. While Paris may be expensive, smaller towns and rural areas often provide more affordable options alongside beauty.
Every day life often includes savoring local wines, fresh baguettes, and leisurely afternoons at village markets, where community and tradition come together in a way that makes retirement feel both vibrant and relaxed.
8. Spain
Spain’s Mediterranean lifestyle, sunshine, and vibrant culture continue to attract retirees. Visa changes and rising costs have impacted its ranking, but the country remains appealing for those seeking community and climate. Housing in smaller cities and inland regions is often more affordable than in coastal hotspots.
Retirees often find themselves immersed in local traditions, from flamenco nights to annual fiestas that fill the streets with music and dancing, creating a lively social atmosphere that makes everyday life feel celebratory.
9. Thailand
Thailand offers tropical living at a low cost. Retirees benefit from affordable private healthcare, diverse cuisine, and many welcoming expat communities. The country’s retirement visa program enables long‑term stays, and destinations like Chiang Mai and Phuket offer different lifestyle options.
Daily life often includes visits to bustling night markets, sampling street food favorites like pad thai or mango sticky rice, and enjoying affordable spa treatments that make wellness a natural part of retirement.
10. Malaysia
Malaysia rounds out the top 10 with its low costs, diverse culture, and strong expat networks. Healthcare is generally affordable and of high-quality, and English is widely spoken in urban areas, easing integration. Retirees enjoy a mix of urban convenience and natural beauty, from Kuala Lumpur to Penang.
Everyday life is flavored by the country’s famous hawker stalls, where retirees can sample everything from Malay curries to Chinese noodles, reflecting the nation’s vibrant cultural blend.
The Bigger Picture
International Living’s 2026 Global Retirement Index highlights how shifting costs and policies are reshaping retirement choices worldwide. Whether it’s Greece’s Mediterranean lifestyle, Panama’s retiree benefits, or Costa Rica’s eco‑friendly culture, each destination offers a unique blend of affordability and quality of life. For Americans facing rising healthcare expenses and inflation, retiring abroad may not just be a dream — it could be a practical path to a richer, more sustainable future.
Featured image credit: Maugli via Deposit Photos
