The best countries to retire abroad in 2026 and the results may surprise you

More retirees are looking beyond their home country in 2026 and not only because of the weather. Rising living costs, expensive housing and pressure on healthcare systems are pushing many people to seriously consider retirement abroad for the first time. And according to the latest Global Retirement Index 2026, some of the countries attracting the most attention are not always the ones people expect.

The annual ranking, based on factors including healthcare, cost of living, residency visas, climate, housing and everyday quality of life, suggests it is still possible to enjoy a comfortable retirement without spending a fortune. In several destinations, retirees are managing to live well on budgets that would feel far tighter elsewhere in Europe or North America.

What is changing in 2026 is that retiring abroad no longer feels like a niche dream for adventurous expats. For many people, it is becoming a practical financial decision. And while countries such as Spain and Portugal continue to perform strongly, the number one destination this year is Greece.

Why Greece has become the surprise favourite for retirees

Greece climbed to the top of the 2026 ranking after previously sitting much lower in recent years. For many retirees, the appeal is easy to understand once the numbers are examined more closely.

The country offers more than 300 days of sunshine a year, relatively affordable housing in many coastal areas and a slower pace of life that continues attracting foreign residents looking to escape stress and rising costs elsewhere.

According to the report, a couple can still live comfortably in Greece on roughly €2,900 to €3,000 per month depending on the area and lifestyle.

In some coastal towns and islands, sea view homes continue to rent for between €600 and €1,000 per month, although prices have risen noticeably in recent years due to increased foreign demand and tourism investment.

Healthcare also remains relatively accessible compared with many other countries. Private insurance for couples can cost around €250 per month according to the study. But beyond finances, many retirees say daily life itself is one of the biggest attractions.

The relaxed lifestyle, slower rhythm and outdoor culture continue drawing people who feel increasingly exhausted by the pace and pressure of life in larger cities elsewhere.

Spain, Portugal and Italy still remain among the strongest choices

Although Greece took first place, southern Europe continues dominating the retirement rankings overall.

Spain remains one of the most attractive options for retirees wanting good healthcare, strong infrastructure and warm weather within Europe.

Despite rising housing prices in parts of the country, Spain still offers a lifestyle many retirees struggle to find elsewhere.

In cities such as Málaga, renting a flat near the coast may cost between €1,000 and €1,300 per month. According to the report, overall monthly living costs for one person often range between €1,800 and €2,300 depending on lifestyle.

Spain’s healthcare system also remains one of the strongest points repeatedly highlighted by expats.

Private health insurance policies can still start from relatively affordable monthly prices, especially compared with countries where medical costs are significantly higher.

Portugal also continues attracting retirees despite its rapidly increasing property market.

The country remains especially popular among foreign residents thanks to its climate, safety, healthcare system and residency visa options such as the D7 visa.

However, the report notes that housing prices near Lisbon and other high demand areas have risen sharply compared with only a few years ago.

Italy also performed strongly in the ranking, particularly southern regions such as Sicily.

According to the report, some smaller towns still offer surprisingly affordable housing while daily expenses remain lower than many people expect. For retirees searching for sunshine, food culture and a slower lifestyle without leaving Europe entirely, Italy continues holding strong appeal.

Asia and Latin America are attracting retirees looking for lower costs

Outside Europe, several countries continue standing out because of how far retirement income can stretch.

Malaysia ranked highly once again, particularly for retirees wanting modern infrastructure alongside lower living costs.

The report estimates that a couple can live comfortably there for around $2,200 per month including housing, food, leisure activities and travel.

Thailand also remains one of the most affordable retirement destinations in the world according to the ranking.

Some retirees are reportedly living comfortably on around $1,200 per month, while couples with larger budgets can enjoy an even higher standard of living.

Low housing costs, inexpensive healthcare and well established retirement visa options continue making Thailand especially attractive for foreign retirees.

In Latin America, Panama, Mexico and Costa Rica all performed strongly.

Panama continues drawing attention because of its Pensionado programme, which offers discounts for retirees on everything from transport and entertainment to healthcare and utility bills.

Mexico also remains one of the best value destinations overall according to the report.

The study suggests that comfortable living is possible there from roughly $1,200 per month depending on the location, while retirees with larger budgets can enjoy a particularly high quality of life.

Costa Rica meanwhile continues attracting retirees searching for nature, warm weather and more relaxed living conditions.

Why more people are seriously considering retirement abroad

One of the clearest messages emerging from the 2026 ranking is that retirement abroad is increasingly being viewed as a realistic option rather than an unrealistic fantasy.

For many people approaching retirement age, the decision is becoming less about chasing luxury and more about maintaining quality of life without financial pressure.

Housing costs, healthcare access, climate and day to day expenses now play a much bigger role in retirement planning than they did a decade ago.

And in several of the countries highlighted in the report, retirees say they feel they can enjoy a calmer and more comfortable lifestyle for less money than they would spend staying at home. That is one reason international retirement is no longer only attracting wealthy pensioners.

In 2026, it is becoming part of a much wider conversation about affordability, wellbeing and how people actually want to spend the next stage of their lives.