The Best Places to Retire Abroad 2025

Caroline Morse Teel is the Managing Editor for SmarterTravel Media. Follow her on Instagram @TravelWithCaroline.

Caroline joined Boston-based SmarterTravel in 2011 after living in Ireland, London, and Manhattan. She's traveled to all seven continents, jumped out of planes, and bungeed off bridges in the pursuit of a good story. She loves exploring off-the-beaten path destinations, anything outdoorsy, and all things adventure.

Her stories have also appeared online at USA Today, Business Insider, Huffington Post, Yahoo, Boston.com, TripAdvisor, Buzzfeed, Jetsetter, Oyster, Airfarewatchdog, and others.

The Handy Item I Always Pack: "Earplugs. A good pair has saved my sleep and sanity many times!"

Ultimate Bucket List Experience: Hiking Mount Kilimanjaro.

Travel Motto: "Don't be boring."

Aisle, Window, or Middle Seat: "Aisle (when the first class private suite isn't available)."

E-mail her at [email protected].

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The idea of living abroad has always held a special allure for many. Who hasn’t fantasized, even just for a moment, about starting fresh in a completely different part of the world? This dream is particularly enticing for retirees and empty nesters, who often seek new adventures or simply a change of pace: the opportunity to live in another country. Additionally, lower-cost destinations can make limited retirement budgets last longer, providing an added incentive.

While relocating to a foreign country may seem like an impossible fantasy, it’s actually quite achievable with some thoughtful planning and a clear vision. The real challenge often lies in choosing the right destination.

Romantic senior couple walking down a foot bridge at the beach — Jacob Lund | Adobe Stock

International Living just released its 2025 Annual Global Retirement Index. This report is designed to help retirees find destinations where their money goes further, offering great value in housing, daily living expenses, and overall quality of life.

The index assesses potential expat destinations across several categories, including healthcare, housing, cost of living, and ease of integration into local communities.

International Living picked Panama as the best place to retire abroad in 2025. “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,” says Jennifer Stevens, Executive Editor at International Living. “Panama’s incredible affordability, modern infrastructure, and welcoming culture have once again earned it the top spot.”