For many in Britain, the dream of swapping grey skies and the daily grind for a sun-drenched, slower-paced retirement overseas remains a powerful ambition. This vision is a reality for an estimated eight per cent of British pensioners, who have already made the move to popular European havens like Spain, Portugal, France, and Greece.
The 2026 Global Retirement Index Unveiled
The latest roadmap for this life-changing decision has been published by International Living in its 2026 Annual Global Retirement Index. The report uses real-time data to pinpoint locations where expats receive the warmest welcome and where retirement savings offer the greatest value for money. From coastal villages to mountain hideaways, the index ranks the world's top ten retirement destinations.
1. Greece: The Mediterranean Champion
Soaring to the number one position, up from seventh last year, is Greece. The country boasts over 300 days of sunshine annually, promising a lifestyle dominated by the outdoors. A resident expert on Corfu praised the compelling mix of climate, the relaxed 'siga siga' (slowly slowly) philosophy, vibrant community, and connection with nature.
Financially, life can be kinder too. The on-the-ground source reports monthly expenses are roughly a third of what they were in the US, with a dinner for two including wine typically costing between £26 and £44. Post-Brexit, UK citizens require a visa, such as a Residency Permit, a Financially Independent Person (FIP) Permit, or a Golden Visa.
2. Panama & 3. Costa Rica: Value and Lifestyle
In second place, Panama scores highly for quality of life and value. An expert in Coronado noted reasonable property prices, citing a 1,000-square-foot condo for around £117,000. Foreign buyers are granted similar property rights as citizens. Britons can retire here with a Pensionado visa, proving an income of at least US$1,000 per month.
Known for its coffee and biodiversity, Costa Rica takes third place. While living costs vary, opting for local produce over imports makes a significant difference. The path to residency is similar to Panama's, involving a Pensionado visa leading to permanent status after three years.
4. Portugal & 5. Mexico: Firm Expat Favourites
A long-standing favourite, Portugal ranks fourth. With its sunny climate, relaxed pace, and competitive property market, it's home to approximately 47,409 British expats. The average two-bed flat costs around £186,000. Retiring requires proof of passive income, health insurance, and a Portuguese address, leading to permanent residency after five years.
Rounding out the top five is Mexico, celebrated for its rich culture and diverse landscapes. A major draw is the low cost of living. Britons must apply for a Temporary Resident Visa at a Mexican consulate, demonstrating economic solvency, which can later be converted to permanent residency.
The Full Top Ten List for 2026
The complete ranking from International Living's 2026 index is as follows:
- Greece
- Panama
- Costa Rica
- Portugal
- Mexico
- Italy
- France
- Spain
- Thailand
- Malaysia
For British retirees dreaming of a life abroad, this index provides a crucial snapshot of where their pension and aspirations could find the perfect new home.
