Best retirement destinations in Europe: Spain tops the league

Are these the best retirement destinations in Europe? Spain tops the league, Finland is a surprise second… and Britain lags in 17th place

  • Research based on crime rates, cost of living, life expectancy, property prices and population age 
  • Italy and Slovenia also performed well in the study of 45 countries 
  • Switzerland – with easily the highest cost of living – Czech Republic and Poland came in just behind the UK – find the top 20 and their scores below

The UK is only the 17th best place in Europe to retire in a new league based on crime, cost of living, house prices and other measures, a report claims. 

Mediocre scores on the above sent it down the ranking, although the UK did relatively well on life expectancy at more than 81 years.

Spain topped the list of best European countries for retirees, followed by Finland, Italy and Slovenia, according to the study of 45 countries by wealth manager Blacktower Financial Management.

League table: Spain (top left), Finland (top right), Italy (bottom left) and Slovenia (bottom right) topped the list of best retirement locations in Europe, while the UK lagged behind in 17th place

Switzerland – with easily the highest cost of living – Czech Republic and Poland came in just behind the UK.

Germany took seventh spot and Greece was in eighth place, but Norway was at 23rd and France only made 25th. Azerbaijan was bottom of the league.

The research was based on crime rates, cost of living, life expectancy, property prices and population age – but not weather, which is one of the main reasons that UK expats flock to Spain, but might overlook Finland.

Would-be expats also have to consider their finances when retiring abroad, and one big issue is that where in the world you go will affect how much state pension you get in future.

State pensions are frozen when you first retire or move abroad if you decide to live in certain countries, such as Canada, India and Australia, but not in others, including EU countries – at least for now – and the US.

That means if you move to the ‘wrong’ country, whatever amount the state pension is set at when you leave is what you will continue to get throughout retirement, unless you move back to the UK. 

Elderly expats living in the EU have been told that after Brexit, their state pensions will be uprated annually until 2023. 

However, after that decisions will be made in light of whether reciprocal arrangements with the EU are in place. 

Number crunching: Blacktower said the state with the highest rate of crime would be weighted closer to Cost of living - The area/state with the highest cost is weighted closer to 0 60 and over – lower % of population is weight closer to 0 Property prices – Higher property prices are deemed less desirable so are weighted down Life expectancy – Lower life expectancy is less desirable so weighted down

Number crunching: Blacktower said the states with a higher rate of crime, higher cost of living, lower percentage of older population, higher property prices and lower life expectancy were weighted downwards

Blacktower found that Iceland was the best country for lowest average house prices, while Italy has the largest population over the age of 65 so retirees are surrounded by people of a similar age.

Switzerland has the highest life expectancy rates across Europe, with people living on average to 83, and Georgia has the lowest cost of living, the firm discovered.

Blacktower said of Spain: ‘The historic country hosts a wealth of great towns, cities and coastal locations which draw millions of retirees to its borders each year.

‘The great weather, food and friendly locals make Spain the perfect destination for anyone looking to relax in their “golden years”.

‘Second in the rankings is the country of Finland. The laid-back Scandinavian atmosphere and magic of the northern lights sees many retirees going “off grid” to enjoy their well-deserved retirement.’