The Best Place in the World to Retire, Says International Living, September 1, 2009

Ecuador has so much to offer, says International Living editor Laura Sheridan, that it bumped Mexico from the top spot on the publication's Annual Retirement Index.

Ecuador offers a low cost of living, top-notch healthcare, and some appealing benefits for retirees, including half-price airfares and other transportation costs, and big discounts on a variety of other expenses like taxes, utilities, and entertainment.

To determine the Annual Retirement Index, Sheridan says 30 countries are analyzed and ranked in categories including real estate costs, special benefits offered to retirees, culture, safety and stability, health care, climate, infrastructure, and cost of living.

"We look closely at the best opportunities worldwide for retirement living," she says. "Where will the retiree's dollars go farthest? Which country is the safest? Where is the health care best? We give top priority to those things that matter most to anyone planning for retirement, including programs with special benefits for retirees. . .things like tax breaks and discounts, for example, that various governments offer in an effort to attract investment and retirement dollars."

Ecuador may be the best-kept retirement secret in the Americas, she says, especially when it comes to real estate prices.

"For a decade now, Ecuador has been one of our favorite locations for overseas retirement," she says. "In fact, it won the top honor in 1999 and has been among our preferred locales ever since. This year, it's back at number one -- followed by Mexico, Panama, Uruguay, and Italy."

"Keep in mind that every place has its pros and cons. And every country has pockets where living is easier, or cheaper, than another," she says. "In Ecuador, for instance, some expats live in small towns, like Cotacachi, in cooler mountain climates (like Vilcabamba). Others live in fishing villages on the coast. And still more choose cosmopolitan cities like Quito and Cuenca."

This is the 17th year that International Living, founded in 1981, has compiled its Annual Retirement Index.

The United States ranks #22 on the Index and receives particularly bad marks in the area of special benefits for retirees. It scores well in both safety and infrastructure. At the bottom of the list are the United Kingdom and South Africa--primarily because of high real estate prices and, in the U.K., overall high cost of living.

"No place scores a perfect 100," stresses Sheridan. "Even Ecuador, our number one retirement destination, earns a score of only 79. The best, but not perfect. If you're trying to pick a place to retire, keep that in mind. There will be good points and bad, no matter where you go. Realizing that ahead of time will help eliminate disappointments later."

The Top Ten Best Places to Retire (and total points out of a possible 100):

• Ecuador 79
• Mexico 78
• Panama 77
• Uruguay 75
• Italy 73
• Brazil 71
• Argentina 71
• Costa Rica 70
• Malta 70
• Australia 70

To read the article and see the complete scores for every country in every category, go to www.retirement-index.com.