Some Americans planning for retirement may find their ideal post-work lifestyle in another country rather than the United States.

According to TIAA's 2025 American Retirement Confidence Survey, about a third of the 1,000 American respondents ages 18 to 65 are not confident they can afford their day-to-day expenses for the rest of their lives due to the fluctuating state of the economy.

Seeking a lower cost of living, people are considering retiring abroad more than ever, especially as the idea enters the mainstream media and becomes less intimidating. Not only are some other countries more affordable, but they can also offer better health care, climate and safety.

For those interested in making the leap, Live and Invest Overseas – a resource for how to live, retire and invest abroad – recently released its annual index of the best overseas retirement destinations for 2026. To develop the ranking, Live and Invest Overseas analysts weighed 14 factors, ranging from cost of living to real estate restrictions and recreation, drawing on on-the-ground experiences from its team of expats and data from sources such as the Legatum Prosperity Index and the Global Peace Index.

The 12 cities that scored highest on this year's index all boast characteristics highly desired by retirees. According to Live and Invest Overseas, they offer a low cost of living, better healthcare system, high safety rankings, residency programs and friendly tax laws.

"This year’s retirement index is one of the most critical ones yet," Kathleen Peddicord, Live and Invest Overseas' founding publisher, said in a statement. "Recent polls show about a third of Americans – around 117 million people – would like to go and settle in another country. A concept that once felt 'out there,' limited to budget travelers or serious adventurers, is now squarely in the mainstream."

Here are the top global destinations to retire, according to the index.

Best places to retire abroad 2026

1. Boquete, Panama
2. Algarve, Portugal
3. Puerto Vallarta, Mexico
4. Gascony, France
5. Crete, Greece
6. Tarragona, Spain
7. Santa Familia, Cayo District, Belize
8. Hua Hin, Thailand
9. Kotor, Montenegro
10.  Las Terranas, Dominican Republic
11.  Sardinia, Italy
12.  Mendoza, Argentina