8 Islands Ideal for Living After Retirement - See if There's One You Like

Choosing the perfect island retirement destination can be daunting due to varied preferences. While some seek luxury, others prioritize affordability or distance from home. Many international islands offer incentives and scenic beauty, but research and visits are crucial. Consider trade-offs like affordability versus modern comforts before deciding. With proper planning, island retirement can offer adventure, relaxation, or budget-friendly living.

Malta

Nestled south of Sicily, Malta boasts a sunny island climate, rarely dipping below the balmy 50s. English serves as Malta's second official language, with many locals fluent in both English and Italian alongside Maltese. Living expenses tend to be lower than those in the U.S., attracting a vibrant expat community, including Americans and Europeans, especially from the U.K.

Healthcare is catered to through a public system for Maltese and other EU passport holders, while top-notch private healthcare is also available at reasonable rates. Thrilling watersports, golf, and outdoor adventures abound, while Malta's rich tapestry includes museums, historic landmarks, and lively cultural festivities.

Puerto Rico

Explorers wander the bustling streets toward La Fortaleza, also known as Palacio de Santa Catalina, the historic governor's mansion in Old San Juan, Puerto Rico.

Just a short two-hour flight from Miami and four hours from New York, Puerto Rico stands as an enticing retirement destination. Medicare is widely accepted, and healthcare options abound, especially in urban hubs. As a U.S. territory, property ownership comes with ease, and no visa is required. Additionally, the Individual Investors Act offers tax exemptions for residents who spend at least half the year on the island.

Living costs are notably lower here compared to much of the U.S. mainland, particularly rent prices. Outdoor adventures, vibrant nightlife, and eclectic shopping scenes await, with a variety of resorts, dining options, and entertainment venues to enjoy. While the tropical climate guarantees year-round warmth, occasional hurricanes, and high humidity add an adventurous flair to island living.

Isla Mujeres, Mexico

This tiny gem sits nestled in the Caribbean Sea, just a ferry ride away from Cancun, a mere eight miles distant. Once a quaint fishing hamlet, it now buzzes with tourists, especially during winter when snowbirds flock from chillier climes. While the sun shines year-round, watch out for rainy spells and tropical storms that may dampen spirits in late summer and fall. Although Spanish is the main tongue, English is widely understood.

Renowned for its laid-back vibe, the island boasts a cost of living that's a steal compared to the U.S. While the local currency is Mexican pesos, U.S. dollars are embraced in many locales, offering bang for your buck. Snagging a temporary resident visa for one to four years is a breeze with modest financial criteria or other provisions, and after four years, securing a permanent resident visa is within reach with proof of income or savings. Rental options abound, catering to various budgets, and owning property is a breeze. Mandatory private medical insurance ensures health needs are covered, with pharmacies, doctors, and a hospital at your service on the island. For more extensive medical care, bustling Cancun is just a stone's throw away.

San Juan Islands, Washington

Forget tropical paradises—some retirees crave crisp air, snowy winters, and towering pine forests, and the Puget Sound archipelago delivers all that and more. Even in summer, when temperatures rarely top 80, these islands remain refreshingly cool, shielded by nearby mountains that keep rainfall to half of Seattle's. Summer brings a flurry of activity as tourists and part-time residents flock in for prime hiking and watersports, but the islands' natural splendor shines year-round.

Life in the San Juans is serene, though some retirees may ferry to the mainland for supplies, entertainment, or medical needs. While the median home price tops $1 million, Washington state's lack of tax on social security, pensions, and retirement accounts offers financial perks. For a tranquil lifestyle amid breathtaking landscapes, sans the crowds, San Juan Island could be your dream retirement haven.

Barbados

Once under British rule, Barbados gained independence in 1966 but remains part of the Commonwealth. English is widely spoken, and U.S. dollars are accepted, though the official currency is the Barbadian dollar. Renowned for its beautiful beaches, friendly locals, stable government, and top-notch healthcare, Barbados is a popular retirement destination, despite its higher cost of living due to import premiums. Its tropical climate and eastern Atlantic location, away from typical hurricane paths, add to its appeal.

Foreigners can buy property, and retirees over 60 can apply for Immigrant Status with proof of income. After five years, permanent residency is an option. Major towns host expat communities, especially British retirees. While residents face income tax if they stay over half the year, pensioners aged 60 and above receive substantial allowances.

Mallorca, Spain

Mallorca, the largest of Spain's Balearic Islands in the Mediterranean, boasts sunny beaches, stunning mountains, and delectable cuisine, drawing tourists and retirees alike. While Catalan is the official language, Spanish is widely spoken. Outdoor adventures abound year-round, complemented by cultural attractions, shopping, and museums.

With excellent healthcare and a lower cost of living than many U.S. cities, Mallorca is an enticing retirement option. Long-term visas grant residency, work, study, or research opportunities in Spain. Foreigners can buy property or find ample rental options on the island.

Big Island, Hawaii

The largest of Hawaii's islands offers a remarkable diversity of climates, from sunny coastlines to chilly mountaintops, providing endless opportunities for outdoor adventures like beach outings, waterfall hikes, and volcano explorations.

For retirees seeking affordability and a vibrant community, Hilo, situated on the island's lush windward side, offers a quieter lifestyle with lower real estate prices and a lively downtown atmosphere. Alternatively, those willing to splurge may find the Kailua-Kona region on the dry west coast appealing, with its abundance of tourist amenities and year-round warm, sunny beaches.

Hawaii's tax benefits, including low property and sales taxes, exemption of social security and most pensions from state income tax, and property tax reductions for residents over 60, further sweeten the deal for retirees looking to settle in paradise.

Penang Island, Malaysia

Nestled off the west coast of the Malaysian peninsula, this charming island attracts a diverse community of expats drawn to its tropical climate, stunning beaches, and vibrant dining and entertainment scene, all at remarkably affordable prices. Beyond the island, Malaysia offers a wealth of natural wonders, from lush jungles to majestic mountains.

For retirees eyeing residency in Malaysia, the "Malaysia My Second Home Programme" (MM2H) offers a convenient pathway with its renewable, multi-year visa, allowing for multiple entries. However, staying informed about program updates is essential. Once settled, retirees enjoy favorable tax policies, with pensions and investment income exempt from Malaysian taxation. Plus, with English widely spoken, adapting to life in this former British colony is a breeze.