Our Plan B

what is the number 1 country in the world for retirees?

You have managed to have enough money to retire. do you stay in your home country or do you move abroad? which country is best suited for retirees and why?

Retirees are moving abroad to enjoy their well earned downtime. There are many factors to consider before making the decision to move countries. Some of these criteria which was developed by International Living include but are not limited to:

1. Financial: Housing, discounts over 65 and cost of living;

2. Lifestyle: Culture/fitting in, climate and healthcare.

3. Governance: Visa/Residence requirements, development, political stability/safety and opportunity.

With the turn of the new year and decade, the Retirement Index for 2020 was determined, largely influenced by the above criteria. The index was first conceived in the 1990’s as globalisation started to increase the movement of people around the world. The list is a constantly changing one as countries change legislation and make other changes to entice more people to move abroad. The current top 3 and a bonus selection of outstanding destinations where you can live a healthier and happier life, spend a lot less money, and get a whole lot more is detailed below.

top 3 rated countries in the world for retirees?

1. Portugal
Portugal has had a tremendous uptick in it economy since the Global Financial Crisis in 2009. The government have helped their recovery by reducing red tape on doing business as a foreigner within Portugal. Foreigners from around the world have been swayed to retire in Portugal for its mild climate in winter and sunny dry summers, its beautiful coastlines stretching from the south all along the west coast of the country, extremely friendly local who mostly speak English, favourable non-habitual resident tax allowances, reasonably priced property and friendly freedom to conduct business in the country. When deciding on where to live, options are plentiful, from the amazingly stunning Algarve region in the south, to small sleepy fishing villages along the west coast or metropolitan cities Lisboa and Porto.

Cost of living is extremely reasonable for foreigners. A couple are able to live off R30,000 - R35,000 quite comfortably in smaller towns for a couple, while living in the Algarve, major cities or Cascais will increase your monthly living costs to around R40,000 - R45,000. Low cost of living, along with Portugal being ranked the 3rd safest country in the world make it a top choice without even considering other benefits the country has to offer.

For those who are retiring and are non-EU citizens, you should check with your home country to determine how you would be taxed while living abroad. However, the Portuguese government developed the non-habitual resident scheme to attract foreigners to retire in Portugal. The scheme has contributed to an increase in foreigners from the US and UK to retire in the country and no doubt assisted to leading Portugal to be the number 1 country in the world to retire.

Have a look at the Portugal Residency options and start your Plan B to retiring in this EU country. You’ll need to prove you have a solid income coming from either a retirement fund or other income to the value $1,070 per month.

TAP (Portugal) announced in March that the airline will open seasonal direct flights from Cape Town to Lisbon direct from November 2020. This makes travelling to and from South Africa a lot easier with the direct flights. There are 3 weekly flights and the arrival or departure times in Lisbon have been implemented to for easy connections in the US and rest of Europe without lengthly layovers.

2. Panama

The beautiful Central American country of Panama has been a global favourite and established itself as a hotspot for retirees. There is laid back Latin atmosphere, tropical climate and very good political stability compared to some of its neighbouring countries. The Panama Canal has also enabled the country to gain relative wealth contributing 20% directly to the economy as well as opening multiple other business opportunities for its government and citizens to take advantage of.

Healthcare has developed into a major hub in Panama and has an international influence as people fly from all over the world to have medical procedures in the country for its cheap but high quality health infrastructure and care. Medical insurance can be issued to non-citizens at around R1,500 per month.

The “Panama Visa Pensionad” makes getting to Panama to retire relatively easy as long as you can prove you have more than $1,000 (R15,000) per person available per month from your retirement fund or other income streams. Here are some of the benefits offered by the Panama retirement visa:

• One-time import duty exemption of household goods up to a total value of $10,000;

• Allowing the duty-free import of a new car every two years;

• 50% discount on entertainment anywhere in Panama (sports, concerts, cinema);

• 30% discount on public transportation (bus, train, boat fares);

• 25% discount on airline tickets;

• 20% discount on medical consultations; and

• 15% discount on dental and eye examinations.

You’ll be able to reach Panama City with connecting flights from London or Amsterdam being the most likely route from Cape Town or Johannesburg. Other options would be to connect through Newark (NYC) from Cape Town and JFK (NYC) from Johannesburg.

3. Costa Rica

A home away from home, Costa Rica.  The incredibly blue water and white sand beaches, relaxed Latin and friendly culture, wit a unique landscape offering mountains, rivers, oceans, varying temperatures, Costa Rica has it all.  This small Central American country has a way of life which is slow paced, where you can truly unwind. There is a relatively easy process to obtain a residency visa under either the “Pensionado” or “Rentista” Program based on a fixed retirement amount each month of a$1,000 or from other income of $2,500 monthly with a deposit amount $60,000.

The quality of life is very relaxed, and once you get residency the health care is available to you for a very small fee in taxes. As a couple retiring abroad in Costa Rica, you can expect to spend around R30,000 to R45,000 a month to live comfortably. This includes housing, transportation, medical care, food, and entertainment which is in line with other countries within the top 10 to retire to in 2020.

The tropical climate is similar to that of Panama allowing you to enjoy more time outdoors in sunny and warm conditions. The local citizens and many retirees are greatly integrated, largely because of the Pura Vida culture - The Simple Life. There is a kind, hospitable and welcoming feeling when arriving in the country.

Similarly to reaching Panama, getting to San José from South Africa is fairly easy with connecting flights from London or Amsterdam being the most likely route from Cape Town or Johannesburg. Other options would be to connect through Newark (NYC) from Cape Town and JFK (NYC) from Johannesburg.

Bonus. Mauritius

The Indian Ocean Island of Mauritius has long been a favourite holiday destination for South Africans. Since the turn of the century many businesses have moved their head offices or have opened a subsidiary in Mauritius. The islands strong banking infrastructure, favourable tax legislation, high ethics and values have allowed it to move up the ranks for global business operations. Very quickly the island has increased its offering from purely holiday destination into an investment destination with the opportunity to live.

One of primary reasons for Mauritius success as the fastest growing economy in Africa has been its governments role in creating seamless policies for conducting business. Mauritius is considered one of the best countries in the world to conduct your business in. Current unemployment lies at below 7% and is constantly improving.

Crime rates are extremely low, 1st in Africa and ranked 23rd in the World above many first world countries. There is a mixed vibrant local community who embrace foreigners into their customs and culture. Because of its natural beauty and tropical climate, many expats have already made Mauritius their home enjoying multiple water sports, hiking, golfing, fishing and other leisure activities.

There are different options to retire in Mauritius. The most cost effective is the Retired Permit as a Retired Non-Citizen. This residency is for anyone above the age of 50 years old who need to make an initial transfer of $2,500 or around R40,000 into a Mauritian bank account. There after you would need to transfer the same amount monthly or an annual contribution of $40,000 or around R620,000 into the same bank account. You will need to submit evidence of the transfer of funds each year to the Economic Development Department.

Living in Mauritius is not as cheap when compared to some of the other destinations who made the top 10 list in 2020, possibly a reason why Mauritius did not crack the list. The country is listed as the most expensive in Africa and you would probably require around R55,000 per month for a couple to retire comfortably. Medical care is not freely provided to foreign residents, but private healthcare is well catered for and advised to obtain this from Cigna Global or Allianz Care or If you are financially secure, Mauritius is a top destination for retirement and is why Our Plan B has included this majestic island as our bonus country.

With direct flights from Cape Town, Johannesburg and Durban, getting to the volcanic island is very easy to do. There are daily flights from Johannesburg and multiple flights during the week from Cape Town and Durban.

If you are looking or even just thinking about looking where you could retire to, enquire to start your journey and build a unique and tailor-made Plan B strategy.