A European Country Was Named The Best In The World To Retire (And It's Not Spain Or Portugal)

So many people dream of packing up and moving abroad, especially when they retire. In fact, according to the Social Security Administration, more than 700,000 retired Americans are living overseas as of 2022. But depending on where you go, your experience as an expat can vary greatly. Whereas some places may offer a lower cost of living, more beautiful scenery, and excellent food, it can also be quite difficult to relocate. So, where is the best place for retired Americans to go across the board? One country, Finland, has stood out against all the rest for people who are looking to make the most of their golden years.

According to data from the home-selling website We Buy Any Home (via Time Out), Finland tops the list of the best places for retirees. The country received a perfect score of 100 in the company's data analysis thanks to its excellent (and incredibly affordable) healthcare, low pollution, low crime rates, and overall quality of life. According to the study, popular retirement spot Spain only ranks at No. 6, and Portugal does not even appear in the top 10 countries. Malaysia comes in second place overall due to its affordable cost of living. Filling out the top five are Belgium, Sweden, and Denmark, respectively. Aside from practical reasons, Finland boasts a ton of natural beauty, especially if you want to get a good view of the Northern Lights. Plus, in the last few years, it has also dominated the rest of the world in one amazing natural resource we all need: happiness.

It seems fitting that the best country to retire in is also the happiest country for the last seven years, according to the annual World Happiness Report. This report takes into account the average gross domestic product per capita, social programs, and life expectancy, as well as other factors like how generous the culture is and the amount of human connection citizens feel. Social programs can come in the form of financial assistance if a person's income does not fit their living expenses and covers basic needs like food and clothing, as well as other expenses like internet access and recreation. Even immigrants living in the country permanently have the right to basic social assistance if they need it. Finland is also considered one of the safest countries worldwide, a perk that retirees will likely appreciate.

Finnish culture is very unique and one of the nation's best features. Perhaps it's because Finland has so much to offer in terms of nature that Finnish people love having active lives, including skiing, hiking, and generally anything that involves spending time outside despite the cold. Summers are also generally pleasant (as long as you don't mind nearly full days of sunlight during some months). But you don't have to spend time in the wilderness to enjoy the Finnish lifestyle. The country also has some moderately sized cities. Turku, Finland's oldest city, is a hub for art and food that rivals other destinations like Paris or Rome. And in terms of promoting healthy lifestyles, a soothing sauna is never too far away to help Finnish people manage their stress and promote good heart health.

Of course, it's important to consider what climate is best for you when you're ready to spend your later years in a different country. Suffice it to say that it might be better to retire on a warm, sunny island instead of Finland if you're sensitive to cold and snow. Winters can be especially hard for people because of the lack of daylight as well. Some days in December have as little as six hours of sun, which can be detrimental to a person's mental health. Roughly 21% of Finns experience seasonal affective disorder (SAD), a type of seasonal depression that happens in the fall and winter, according to a 2016 study published in the journal European Psychiatry.

The cost of living is also a big factor. While housing and healthcare are slightly cheaper in Finland compared to the U.S., buying groceries or eating out at a restaurant is generally more expensive compared to other countries worldwide. The tax rate in Finland can also be quite high, sometimes up to 44% (depending on your total worldwide income) if you become a permanent resident and 35% for non-residents, according to retirement advisor Unbiased. Plus, becoming a resident is not a walk in the park. One of the main criteria for earning the permanent residence permit is being fluent in Finnish — which can be quite difficult for some. Even though this can be a challenge when it comes to paperwork, getting around is fairly easy since a vast majority of Finnish people speak English.