In this year's index, International Living split up the "buying and renting" category into two separate categories: "buying and investing" and "renting."

The new category on this year's index is "governance." According to International Living, "a good score in this category reflect's a nation's commitment to personal freedom, keeping bureaucracy to a minimum, and offering a stable and safe environment for comfortable living."

The remaining categories ranked on the index include benefits and discounts, visas and residence, cost of living, fitting in, entertainment and amenities, health care, healthy lifestyle, development and climate.

"By design, the rankings in our annual Global Retirement Index are largely subjective, but we build it from a base of facts and figures," Jennifer Stevens, International Living executive editor, said in a statement. "Our editors rely on the informed judgment and real-world experience of the magazine's contributors and editors in the field as well as additional in-country expats … people who have made the move and have firsthand experience."

According to the 2018 Global Retirement Index, these are the world's top 10 retirement destinations:

10. Peru

Peru, with its low-cost living and vibrant and diverse attractions, comes in at number 10 in 2018. This is the first time Peru has made the top 10.

Steve LePoidevin, International Living's Peru correspondent, has lived in Peru for a year and a half. LePoidevin and his wife picked Peru because they wanted a "place where we could become permanent residents relatively easily, not too hot and not too cold, inexpensive and absent of a huge expat population."

According to LePoidevin, there are two-bedroom apartments to rent for as low as $250 per month and couples report monthly expenses of less than $1,000 in Peru.

"From renting to eating out, you will be surprised at the high quality of life you can have in Peru with a modest income," LePoidevin writes in the report.

Although not in the top countries when it comes to public health care, Peru has a large network of excellent private clinics and hospitals, according to LePoidevin. A variety of national private insurance companies offer health care plans for far less than in the U.S., and policies are available within individual health care networks for as little as $100 per month.

Here's how Peru scored on the 2018 Global Retirement Index:

• Buying & investing score: 81

• Renting score: 91

• Benefits & discounts score: 66

• Visas & residence score: 89

• Cost of living score: 95

• Fitting in score: 82

• Entertainment & amenities score: 80

• Health care score: 81

• Healthy lifestyle score: 79

• Development score: 79

• Climate score: 89

• Governance score: 82

• Final score: 82.8

9. Spain

According to Glynna Prentice, an International Living editor, Spain's miles of beach and warm coastal climate mean there are plenty of places to enjoy a seaside lifestyle, as well as temperate weather, pretty much year-round.

Prentice also notes that the cost of living is one of Europe's lowest. "In many of Spain's midsized coastal cities, a couple can live comfortably (including rent and private health insurance) for around $2,100 a month," Prentice writes in the report.

Prentice also says that Spain is "true first-world living" – with first-rate telecommunications, modern housing and amenities, and widespread public transportation.

According to Prentice, a big plus to Spain is that the cultural amenities — cineplexes, museums, and a music and theater scene — not only in the very large cities, like Madrid and Barcelona, but also in smaller cities like Alicante and San Sebastián.

Here's how Spain scored on the 2018 Global Retirement Index:

• Buying & investing score: 82

• Renting score: 79

• Benefits & discounts score: 70

• Visas & residence score: 73

• Cost of living score: 81

• Fitting in score: 89

• Entertainment & amenities score: 90

• Health care score: 87

• Healthy lifestyle score: 88

• Development score: 95

• Climate score: 88

• Governance score: 81

• Final score: 83.6

8. Nicaragua

For expats looking for a tropical locale where their dollar will go far, Nicaragua deserves attention, according to Scott Hed, International Living Nicaragua contributor.

Among its attractions are that it's easy to reach and easy to stay in touch with family and friends in North America being in the Central/Mountain time zones, Hed notes.

Hed and his wife, who moved to Nicaragua full time in 2016, built a home just outside of Granada for a "fraction of what the cost would have been back in the U.S."

Daily living expenses in Nicaragua can be very modest, especially if you frequent the local markets for fresh meats and produce, according to Hed. "A couple renting in Nicaragua and enjoying meals out several times per week could easily live well on $1,500 per month, and often for much less," he writes in the report. "Owning our home takes away a major expense, and we consistently spend under $1,000 per month, which includes automotive expenses, groceries, pet food, dining out and entertainment, part-time help around the house, even regular massages."

Here's how Nicaragua scored on the 2018 Global Retirement Index:

• Buying & investing score: 85

• Renting score: 95

• Benefits & discounts score: 65

• Visas & residence score: 77

• Cost of living score: 92

• Fitting in score: 88

• Entertainment & amenities score: 90

• Health care score: 80

• Healthy lifestyle score: 98

• Development score: 77

• Climate score: 80

• Governance score: 80

• Final score: 83.9

7. Portugal

One factor that makes Portugal attractive to retirees is its affordable lifestyle, according to Tricia Pimental, International Living's Portugal correspondent.

Pimental, who's lived in Portugal for five years, says she and her husband spend about a third of what they did to live in the States.

"For example, a simple lunch of soup, main course, beverage, dessert and coffee runs about $10. A taxi start is about $4. Monthly utilities for a two- or three-bedroom apartment average $100 a month," she writes in the report. "We pay just $1,000 a month for a four-bedroom, four-bathroom home, half an hour from Lisbon."

Pimental also notes that Portugal was rated the third-safest country in the world in the 2017 Global Peace Index.

Here's how Portugal scored on the 2018 Global Retirement Index:

• Buying & investing score: 82

• Renting score: 81

• Benefits & discounts score: 75

• Visas & residence score: 79

• Cost of living score: 85

• Fitting in score: 88

• Entertainment & amenities score: 85

• Health care score: 84

• Healthy lifestyle score: 92

• Development score: 94

• Climate score: 87

• Governance score: 94

• Final score: 85.5

6. Colombia

Colombia, which falls one spot from last year's list, still ranks high as a place for healthy living.

"The great weather allows retirees to enjoy an active, outdoor lifestyle every day of the year," according to Nancy Kiernan, International Living's Colombia correspondent who's lived in Colombia for more than five years.

Kiernan notes that Colombia ranks highly in the health care category. The World Health Organization (WHO) ranks Colombia #22 out of the 191 countries it reviews for quality of care. That surpasses Canada (#30) and the U.S. (#37). Colombia is home to 22 of the top 43 Latin American hospitals.

In Colombia, retirees can stretch their retirement dollars, thanks to the low cost of living and the great exchange rate, according to Kiernan. The Colombian peso has been hovering around 3,000 to the U.S. dollar since late 2015. Monthly rental costs range from about $300 in small towns to $1,500 and more for a penthouse or a sprawling country home.

In many areas of Colombia, a couple's total cost of living can be $2,000 a month or less, Kiernan adds.

Here's how Colombia scored on the 2018 Global Retirement Index:

• Buying & investing score: 83

• Renting score: 86

• Benefits & discounts score: 63

• Visas & residence score: 82

• Cost of living score: 90

• Fitting in score: 88

• Entertainment & amenities score: 90

• Health care score: 93

• Healthy lifestyle score: 93

• Development score: 91

• Climate score: 89

• Governance score: 80

• Final score: 85.7

5. Malaysia

On bang for buck, Malaysia is hard to beat, according to Keith Hockton, International Living's Malaysia correspondent.

It's joint second in the "renting" category for a reason. "In Kuala Lumpur, a couple can live comfortably on $1,500 a month, or extravagantly on $2,500 a month, including rent," Hockton writes in the report.

For $700 a month, a retiree can rent a 2,195 square-foot, four-bedroom, two-bathroom apartment in Penang on a natural harbor overlooking the Straits of Malacca.

This year, Malaysia topped the "Entertainment and Amenities" category of the Retirement Index.

According to Hockton, the street food in Malaysia is hands down the best in Asia. There are street stalls selling Chinese, Malay and Indian fare, and in some cases a serving rarely costs more than $1.50.

As for health care, compare surgery prices between the U.S. and Malaysia and the benefits are obvious, Hockton says. "A knee replacement in Malaysia costs just $4,000 compared to $45,000 or more in the States, while a hip replacement can cost as little as $5,200, versus $39,000 in the U.S.," he writes.

Here's how Malaysia scored on the 2018 Global Retirement Index:

• Buying & investing score: 79

• Renting score: 95

• Benefits & discounts score: 69

• Visas & residence score: 90

• Cost of living score: 82

• Fitting in score: 95

• Entertainment & amenities score: 97

• Health care score: 94

• Healthy lifestyle score: 95

• Development score: 87

• Climate score: 78

• Governance score: 91

• Final score: 87.7

4. Ecuador

Ecuador, with its history-filled colonial cities, mountain villages and coastal towns, has become a retirement hot spot among North Americans.

Wendy DeChambeau, International Living's Ecuador Highlands correspondent, moved to Cotacachi, in the Andes, six years ago.

One of DeChambeau's favorite benefits is Ecuador's affordable lifestyle.

"My family of four lives on approximately $1,200 a month (without rent, as we own our home outright)," she writes in the report. "At Cotacachi's local produce market, I can load a canvas grocery bag full of fresh fruit and vegetables for $5 to $10. The mild climate means I don't need to pay for heating or cooling, so my electric bill stays under $18 a month."

Since public transportation is everywhere and cheap – a one-hour bus ride costs just $1.50 – DeChambeau says there's no need to own a vehicle.

Here's how Ecuador scored on the 2018 Global Retirement Index:

• Buying & investing score: 84

• Renting score: 86

• Benefits & discounts score: 95

• Visas & residence score: 82

• Cost of living score: 85

• Fitting in score: 92

• Entertainment & amenities score: 91

• Health care score: 89

• Healthy lifestyle score: 90

• Development score: 86

• Climate score: 98

• Governance score: 81

• Final score: 88.3

3. Panama

Panama dropped a spot from No. 2 last year, but it remains near the top of the list.

"Modern, convenient and close to the U.S. — not to mention sunny, warm and welcoming. It's hardly surprising to me that Panama always does well in International Living's Annual Index," according to Jessica Ramesch, International Living Panama editor.

Ramesch, who has been living in and writing about Panama for nearly 12 years, says she pays no income tax on her overseas earnings. She also says the health care in Panama is "top notch."

"The city's four major private facilities include a technologically advanced Johns Hopkins International affiliate," she writes in the report. "My dental care is inexpensive, and yet I get the same quality of care I expected back in the States."

Here's how Panama scored on the 2018 Global Retirement Index:

• Buying & investing score: 80

• Renting score: 90

• Benefits & discounts score: 100

• Visas & residence score: 100

• Cost of living score: 84

• Fitting in score: 93

• Entertainment & amenities score: 93

• Health care score: 90

• Healthy lifestyle score: 94

• Development score: 90

• Climate score: 89

• Governance score: 90

• Final score: 91.1

2. Mexico

International Living's Mexico editor, Glynna Prentice, moved to Mexico more than 10 years ago for its convenient location and low cost of living. Mexico, which topped the list last year, comes in at number two in 2018.

"A concert ticket costs me $4, a first-run film about the same, and a doctor's visit about $40," Prentice writes in the report. "Last week an evening out — drinks and dinner with friends, a symphony performance and a taxi home — was less than $20, all in."

According to Prentice, a couple can live in Mexico for anywhere from $1,500 to $3,000 a month, depending on location — including rent and health care.

Mexico also affords the comforts of fast internet, free long-distance phone calls worldwide, plenty of gourmet foods in specialty markets, cheap air fares on discount airlines to destinations all over the Americas, first-run films (in English), and more, according to Prentice.

According to Prentice, health care in Mexico is "good to excellent." Expats can opt for private health care that tends to cost a quarter to a half of U.S. prices, or those with a residence visa can sign up for Mexico's public health care, which costs a few hundred dollars a year. For those over 60 and legal residents, the public system is free.

Here's how Mexico scored on the 2018 Global Retirement Index:

• Buying & investing score: 89

• Renting score: 90

• Benefits & discounts score: 94

• Visas & residence score: 96

• Cost of living score: 88

• Fitting in score: 93

• Entertainment & amenities score: 97

• Health care score: 90

• Healthy lifestyle score: 90

• Development score: 90

• Climate score: 88

• Governance score: 89

• Final score: 91.2

1. Costa Rica

Costa Rica, the winner of the International Living 2018 Global Retirement Index, has been a perennial presence in the index – and this year it climbed from fourth place to the top.

"North Americans have been flocking to Costa Rica for more than 30 years, attracted by the tropical climate, low cost of living, top-notch, affordable medical care, bargain real estate and natural beauty," according to Jason Holland, International Living's roving Latin America editor.

According to Holland, Costa Rica is very affordable. Expats can rent a furnished two-bedroom home for $500 a month, buy an oceanview property for under $200,000, and spend $25 in the farmers' market and come home with a week's groceries for a couple, according to Holland.

Holland notes that Costa Rica has a steadily growing economy, and dozens of multinationals like Amazon and Microsoft have major operations there.

According to Holland, "the low crime rate means you can feel safe just about anywhere in the country, day or night. And there is a focus on preserving the environment, with 25% of the country's territory protected."

Here's how Costa Rica scored on the 2018 Global Retirement Index:

• Buying & investing score: 90

• Renting score: 90

• Benefits & discounts score: 82

• Visas & residence score: 89

• Cost of living score: 84

• Fitting in score: 94

• Entertainment & amenities score: 97

• Health care score: 99

• Healthy lifestyle score: 100

• Development score: 90

• Climate score: 89

• Governance score: 91

• Final score: 91.3