Many of us dream of one day retiring to a far-flung place where there is endless sunshine and the worries of the nine-to-five fade into distant memory.
An estimated eight per cent of British pensioners are currently living overseas, with popular spots including Spain, Portugal, France and Greece.
It comes as International Living has released its 2026 Annual Global Retirement Index, revealing the best places to retire.
Using real-time data, experts have revealed the spots where expats will receive the warmest welcome, as well as the locations where your money will stretch the furthest.
From coastal villages to rugged mountain retreats, read on to find out which countries make the top 10.
Pictured: Panoramic view of Pigadia bay, Karpathos Island, Greece
1. Greece
Taking the top spot is Greece, which ranked at number seven in the Index last year.
Much of Greece has more than 300 days of sunshine a year, meaning days by the beach will far outweigh time spent inside twiddling your thumbs.
International Living’s Corfu resident wrote: ‘Four years in, I see why this country has become such a compelling choice for retirement.
‘It’s not just one thing; it’s the climate, the “siga siga” attitude of taking life slowly, the vibrant community, and the daily connection with nature.’
As well as plenty of sunshine and a slower pace of life, expats can expect to find themselves with more disposable income.
The on-the-ground expert claims her monthly expenses are about a third of what they were in the US and dinner for two with wine typically costs £26 to £44.
Retiring to Greece is not as easy as it was for UK citizens before Brexit. However, there are multiple ways to go about it, including obtaining a Residency Permit, a Financially Independent Person (FIP) Permit or a Golden Visa.
2. Panama
A tug boat guides a cruise hip to the Pacific Ocean after crossing the Panama Canal and navigating under the iconic Americas Bridge, Balboa near Panama City, Panama
In second place is Panama, which ranks highly for quality of life and value.
According to an expert who lives in the beach hub of Coronado, house prices are reasonable and she was able to buy a 1,000-square-foot condo for $155,000 (around £117,000).
In British terms, this is around the size of a semi-detached house in the UK.
The expert claims that foreigners who buy here are accorded practically the same property rights as citizens.
For Brits to retire here, you need to prove that you have an income of at least US$1,000 and then apply for the Pensionado visa.
3. Costa Rica
Pictured: The pacific ocean view in Uvita Costa Rica National park
Known for its coffee, tropical beaches and volcanoes, Costa Rica comes in at spot three.
The cost of living can vary significantly but simple swaps like eating local food rather than imported goods can make a big difference.
For Brits looking to retire in Costa Rica, there are similar requirements to Panama, which include applying for a Pensionado visa.
The Pensionado visa initially grants a two-year stay. After three years of legal residence, you can apply for permanent residency.
4. Portugal
Pictured: The capital of Madeira island Funchal, Portugal
In spot four, Portugal is a popular choice for British expats.
With more than 300 days of sunshine a year, a relaxed pace of life and property prices that remain competitive, approximately 47,409 British expats are currently in Portugal.
The average price for a two-bed flat in Portugal is approximately £186,000, and according to Rightmove, Portugal’s southern coast continues to top the wish list for many overseas buyers.
To retire from the UK to Portugal, you must apply for a visa, which requires proof of passive income (like pensions), private health insurance and a place to live in Portugal.
After arriving with a four-month visa, you will convert it to a two-year residency permit and eventually become eligible for permanent residency after five years.
With an affordable cost of living, quality healthcare and a relatively straightforward visa process, it’s easy to see why so many expats live here.
5. Mexico
Mexico is a diverse country with a range of jungles and rolling hills, snowy peaks and arid landscapes
Rounding off the top five is Mexico, known for its rich culture, vibrant cuisine and natural landscapes.
According to local experts, the low cost of living is one of the biggest perks.
It is a diverse country with a range of jungles and rolling hills, snowy peaks and arid landscapes.
For Brits to retire here, you must apply for a Temporary Resident Visa in person at a Mexican consulate in the UK, showing proof of economic solvency, such as a pension or income from savings.
After arriving in Mexico, you will exchange this visa for a Temporary Resident Card and can then apply for Permanent Residency after four years of temporary status.
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