Revealed: Surprising destination named as best place in the world to retire

An unexpected destination has taken the crown as the world's best place to retire.

According to a new report on retirement by International Living, a Central American country is officially the globe's best place to spend your golden years in.

The International Living Annual Global Retirement Index looks for countries where retirees can 'live a healthier and happier life, spend a lot less money and get a whole lot more'.

And this year's winner? Panama.

The Central American country is known for its beaches while the capital city, Panama City, is a hub for casinos and nightclubs.

Jess Ramesch, a U.S expat who lives in Panama, says her friends' 'jaws drop' when they see what the Central American country is really like.

She tells International Living: 'As we leave the airport, that incredible city skyline comes into view, mirage-like over the shimmering waters of the warm, tropical Pacific.

'[My friends] boarded a plane to a little Central American republic, but suddenly they're wondering: "Did we somehow land in Manhattan?" When their jaws drop, I have to laugh.'

The expat claims that Panama is a 'safe, stable and wealthy country' where a person can live a 'comfortable lifestyle' on $2,400/£1,780 a month.

And expats who are willing to spend $2,900/£2,152 a month can 'live a life that feels positively luxurious'.

Jess adds that Panama 'doesn't charge tax on foreign-earned income' and property tax is just 0.5 per cent for primary residences.

Retirees can qualify for a pensioner visa in 'as little as six months' if they have a pension of at least $1,000/£742, claims Jess.

Pensioners can also pick up some enticing discounts in Panama, including 25 per cent off their power bill, 50 per cent off cinema tickets and 25 per cent off restaurant meals.

When it comes to lifestyle, Jess reveals that Panama's warm temperatures mean that residents can play golf, tennis and pickleball 'all year long'.

The expat explains that she lives in Coronado, a coastal city and resort, just 54 miles/87km southwest of Panama City.

She says: 'I chose Coronado for the gorgeous breezy weather and the ocean views. I bought my apartment (1,130 sq ft) - my happy place - in 2022 for $155,000/£115,029.

'My building is in a coveted location on a golf course and beautifully maintained. We have a large social area and pool on the ground level, as well as three rooftop levels with more common areas, another pool, a gym, a game room, and a sauna.'

Jess adds that Coronado is 'welcoming' to expats with 'overwhelmingly kind' locals who are happy to help non-English speakers.

To claim its place at the top of the podium, Panama beat out tough competition from other expat hotspots including Spain, Portugal, Italy and Thailand.

Jess concludes: 'Fitting in and staying busy is almost ridiculously easy. That's the nature of a well-established expat destination - where you can live an active, social, comfortable life without reinventing the wheel.

'Simply put, that's Panama. And no other country offers so much.'