RobertPowell

Quito, Ecuador

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BOSTON (MarketWatch) — It might not seem the world’s top retirement haven, but the editors at International Living say the Republic of Ecuador is the best place in the world to retire to. The cost of living is low and real estate is cheap.

According to Dan Prescher, the special projects editor of International Living, and who — for the record — resides in Ecuador, the country affords him the chance to live on the fraction of the cost of living in the U.S. without sacrificing any quality of life. “A couple watching their spending here can live well on $800 a month,” International Living said. “And even if you push the boat out you’ll find it hard to spend more than $1,500.”

But that’s not all that International Living examined for its 2012 Global Retirement Index. The editors looked at eight factors, assessing everything from “the price of bread to how easy it is to make friends or stay in touch with family” before saying that Ecuador has what matters most to Americans who might be considering an overseas retirement spot.

And don’t worry about integration. The International Living editors say you can get by speaking English in parts of Ecuador. Plus, there are some expat communities already established. Retirement benefits, including 50% off transportation, utility bills and tickets for cultural and sporting events, are generous. And health care is inexpensive as well: All expats are able to participate in the Ecuador Social Security medical program for a premium of $57 a month.

Panama City

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2. Panama. Panama has the best retiree benefits according to International Living’s research. The southern-most country of Central American has an organized program of discounts and perks called the “pensionado.” The program is open to foreigners and there’s no minimum age requirement. You get 20% off any professional services used in Panama; 50% off for movies, theaters and sporting events; a 30% discount on public transport, 25% off the price of food eaten in a sit down restaurant; 15% off in fast food joints, 15% off in hospitals and private clinics, 25% domestic flights on COPA, and the list goes on, said International Living.

To prepare its rankings International Living examined such factors as real estate, special retirement benefits, the cost of living, the ease of integration, entertainment and amenities, health care, retirement infrastructure and climate as part of its research. Plus, International Living editors relied on the input of expats in developing its list of the top 19 retirement havens. “It’s a subjective measure,” said Prescher.