A retirement research sidebar -- International Living Retirement Index

The January 2012 edition of International Living is out and includes the annual Retirement Index.  Once again, Panama is towards the top of the list; in fact it is number two.  And, once again, let me say that while the index is interesting and contains useful comparisons between countries in a variety of categories, each of the category summaries need to be taken with a grain of salt.

Don’t get me wrong… the article is worth reading.  As always there are comparisons on real estate prices, cost of living, health care, climate and a total score.  My problem is this: how you come up with a single number that summarizes a whole country?  As an example, I keep reading about how wonderful the upland areas of Columbia are; year-round temperate weather, no need for heat or A/C and the coastal areas are outside the hurricane belt.  So why does Columbia get a score of 75 while France gets a 90?  The last I heard, there is plenty of snow and cold weather in France.

Read the main article; just use your best judgment when evaluating the data.  Separate links are available for each aspect of the index.  You need to be a subscriber to access the full article.  While I won’t reproduce copyrighted material, if you leave me a message I would be happy to provide a summary.  If you like what you see and you are interested in retiring overseas, I recommend getting your own subscription to International Living – it’s money well spent.