To retire or not to retire has become the question du jour for a major segment of the Baby Boomer and Beyond generation. While the subject of retirement remains controversial, some men and woman are eager for a lifetime, at last, of relative leisure and know precisely how they will customize their new lifestyle to meet their needs and to fulfill their wildest dreams. For those with a clear exit strategy and the wherewithal to execute it, International Living, the magazine for fanciers of luxury living (and who isn’t one of those?), dedicates an annual issue to its nominees for the hottest retirement destinations on the planet. It measures in such factors as safety, infrastructure, climate, culture, real estate, and other benefits including retiree discounts when creating its roster of laudable locations.

Keep in mind that as perfect as any place may appear in your fantasies, harsh reality demands you give the place a test-run before putting down permanent roots. According to Ken Budd, travel editor at AARP The Magazine, you should “see what it’s like becoming a local. Make sure this idealistic locale is ideal for you.” You might also project what it might be like five, ten, or twenty years down the line, according to one disenchanted expatriate. “The world is a rapidly changing place, and what appears to be the Garden of Eden for you today may be tomorrow’s geo-political hot spot or overpopulated paradise that had its day in the sun.” 

According to International Living’s 2006 Global Retirement Index, those spots placing in the top five out of 28 are as follows—each one sexy in its own unique way.

1. Panama City, Panama

Swaying palm trees, blue tropical water, stunning luxury high-rises. What could be bad? For the sixth year in a row, Panama has topped IL’s Global Retirement Index. More affordable than Miami Beach, Panama City offers a tropical climate and scenic beachfront lifestyle similar to South Florida. Retirees enjoy some of the same upscale amenities, including: luxury restaurants, hotels, shopping centers, and malls. And most of the citizenry speaks English. Because the developed areas of this city were built by Americans during the construction of the Panama Canal, the infrastructure is solid. Best of all, perhaps, are the perks you are eligible to receive from the country’s pensionado program. If you are over 18 and can document a monthly income of at least $500 ($600 for couples) you qualify for a range of perks and discounts on everything from transportation, hotels, and restaurants to cultural events and even mortgages.

2. Malta

If you love cultural events such as ballet and theater, you can get your fill of it in this island nation of 404,000 between October and May. But while Malta does not offer the wide range of products and services to which Americans are accustomed, it does provide seclusion and privacy. More good news is that the climate is mild, English is spoken, and the tax rate for permanent residents is 15%.

3. New Zealand

The cost of living is low as is the price of real estate, and the scenic beauty is awesome. Think “The Lord of the Rings” trilogy on a wrap-around screen. Since the government caters more to young immigrants than to retirees, permanent residency might be a problem. So, why not have the best of both worlds—their summer season during our winter, and our summer during their winter? If it’s excitement you’re after, Auckland, with its population of 1.3 million offers the shopping and entertainment of big city living.

4. Uruguay

Here is a small country with a class A capital city—Montevideo. European in its architecture, culture, and entertainment amenities, it is yet very affordable. According to International Living, you can buy a decent apartment for $30,000 and have access to beach resorts that are among the most budget-conscious in the world. A good tip when moving here is to learn to speak Spanish, as few Uruguayans are conversant in English.

5. Mexico

Not the dirt cheap bargain from a few years back, it’s still a favorite retirement home for Americans looking for sun and fun just the other side of the border. Some favorite towns and cities include: Puerto Vallarta, Queretero, Mazatlan, Merida, and even close-by Baja California’s Rosarito Beach.

6. Home, Sweet Home