International Living article

Mexico—still the world’s best retirement haven

Date: 08/31/2008 by the staff of International Living
For the second year running, Mexico wins our annual Global Retirement Index.
With rapidly rising fuel, health care, food, and travel costs, it’s nice to know there are still places where you can live well without burning through your retirement nest-egg. And Mexico is one of those special places. In Mexico, you can still enjoy a lifestyle that’s probably all but unaffordable for most people in the U.S. and Canada.

IL’s top 5 retirement havens in 2008

1. Mexico
2. Ecuador
3. Panama
4. Uruguay
5. Italy

Mexico offers the perfect mix of centuries-old traditions and contemporary lifestyles. It’s easy to get a residence visa. And the services, amenities, and discounts offered to retirees here are just as bountiful as in Panama, with its famous pensionado program—as are the overall cost savings. Plus, Mexico is closer to home.
Moving to Mexico means you can still have all the comforts you are used to north of the border: cable TV, high-speed Internet, and modern home appliances. And if you prefer, when you move to Mexico you can even bring all your favorite things with you without paying import taxes.
Goods and services cost less, so you can afford the kinds of luxuries only the wealthy enjoy up north: a maid, a cook, and a gardener, for example. Whether your vision of the ideal retirement involves shopping, fishing, sunbathing, diving, biking, mountain climbing, parasailing, collecting crafts, visiting archeological sites, partying, going to concerts, attending the theater, or fine dining, in Mexico you can engage in all these activities, and many more.

Live well in Mexico on $2,135 a month

Housing (rental of a two-bedroom home)	$800
Utilities (electricity, gas, water)	$125
Household help (housekeeper and gardener three days a week)	$150
Groceries	$300
Maintenance and fuel for one car	$150
Entertainment (dining out and other activities)	$250
Health care (two people at $280 per year for IMSS insurance, plus $63 per month for private-care incidentals)	$110
Incidentals (clothes, household items, etc.)	$100
Communication: phone, internet, cable TV	$150
Monthly total:	$2,135

This country is so diverse that everybody can find exactly what they want: beautiful, warm oceans, crystal-clear tropical lakes, fertile farmlands, temperate-but-majestic mountains, starkly gorgeous deserts, small towns or sophisticated cities.
And because of its geographic diversity, you can also choose your favorite climate: from warm and dry to warm and sultry to spring-like temperatures all year in the Colonial Highlands.
And if you’re looking for the home of your dreams, you can find it in Mexico—for much less than it would cost you most anywhere in the US or Canada. The real estate market offers endless possibilities for your retirement. You can own beachfront—not just ocean-view property—in Mexico for less than $100,000.


Editor's note: We assign points based (from 1 to 10 with 1 being dismal and 10 being excellent) on our perceptions of what is most important to us. As for housing costs, if we think they are extremely reasonable, we give the location a 10 ranking. This, too, is subjective, as housing costs in resort areas can be expensive yet still reasonable based on the fact that it is a popular destination where prices are likely to continue to appreciate.
Total points available for any one destination: 100.

How our Global Retirement Index is scored

Real estate: Countries where real estate prices are low and the purchase of real estate is relatively easy receive the highest scores. We use our own experiences plus reports from our contributing editors and real estate contacts around the world to rate each country. Weight: 15%
Entertainment, recreation, and culture: This category considers the number of newspapers per 1,000 citizens, the number of museums and cinemas per capita, the number of university students, the literacy rate, and the variety of cultural and recreational offerings. Weight: 10%
Cost of living: This score is based on statistics from the Indexes of Living Costs Abroad, Quarter Allowances, and Hardship Differentials, published by the U.S. Department of State, and on data published by Business International. We also use our firsthand experiences living and traveling in these countries. The lower the score, the higher the cost of living. Weight: 20%
Safety and stability: This measure of unrest in each country is based primarily on Interpol data and State Department statistics. It also takes into account the civil liberties and political rights granted by each government. Our own experiences and reports from expatriates living in these countries also influence the safety scores. Weight: 5%
Health care: Considered in this category are the cost of a typical visit to a general practitioner and the cost and coverage particulars of health insurance. Weight: 20%
Climate: Countries with temperate weather throughout the year, moderate rainfall, and little risk of natural disaster come out on top in this category. We use data representing each country as a whole instead of favoring one region over another. Weight: 5%
Special benefits: This category considers government provisions that make moving to and living in each country easier and more affordable for foreigners. Taken into account are property rights for foreign residents, property tax rates, duty-free imports on personal belongings, currency controls, employment restrictions, voting rights, and transportation discounts for seniors. Weight: 20%
Infrastructure: This section considers the number of cars and telephones per 1,000 residents, the length of railroad track in usable condition, the number of airports, the quality of the country’s road and highway network, and the availability of telecommunications. Weight: 5%

Country	Real Estate	Special Benefits	Cost of Living	Culture	Health	Infra.	Safety/Stability	Climate	Total
Mexico	85	72	68	72	82	62	92	90	77
Ecuador	90	75	72	63	73	47	88	100	76
Panama	80	85	63	66	75	63	100	65	75
Uruguay	90	57	67	70	79	62	100	93	74
Italy	63	63	51	100	93	65	100	87	73
Brazil	92	45	75	66	79	65	92	83	72
France	60	45	50	98	100	95	100	87	72
Argentina	83	40	68	71	86	63	100	93	71
Costa Rica	72	70	60	64	78	65	93	75	70
Australia	65	52	55	68	90	90	100	89	70
Malta	64	65	52	70	91	34	100	96	70
Belize	67	84	65	50	69	53	93	60	69
Malaysia	92	65	66	70	65	47	86	40	69
Nicaragua	87	68	62	60	69	38	79	75	68
Spain	55	49	50	72	94	71	100	87	67
South Africa	87	23	47	63	56	47	86	98	67
New Zealand	75	36	43	87	92	65	100	84	67
Greece	75	49	55	68	79	60	100	79	67
Chile	70	47	68	71	76	51	100	48	66
Thailand	80	50	62	69	70	49	71	43	63
U.S.	58	27	59	79	74	100	100	86	63
Colombia	83	34	57	63	76	47	71	91	63
Portugal	66	23	58	76	80	62	100	93	62
Slovenia	72	46	42	65	76	56	100	83	62
Ireland	20	79	29	85	85	57	100	59	61
Dominican Republic	67	55	52	50	72	34	86	57	60
Honduras	68	35	66	34	69	41	79	83	58
Croatia	61	20	45	70	80	56	100	95	58
U.K.	20	55	25	87	81	71	100	60	55