Some of the best are in Central and South America, due to the climate, and economy, real estate and dollar. Examples are Costa Rica, Paraguay, Chile, Panama, Nicaragua and Uruguay.
Every year some of the most influential magazines and news sources list their choices, by looking at certain criteria, here are a few for 2010. Spain, Italy, France, and Panama.
The best place to retire overseas is Italy. The reason is Italy has warm beautiful weather, tons of history to learn, wonderful food to try, and see and it is close enough to other places in Europe to hop a train and go see them too. It also has wonderful wine to try and enjoy.
There are only a few places that I can ever think of retiring to that are not with the United States of America. The first would be Siberia for its long winters and rather cold climate. The next place would have to be Spain, as it has the sexiest women.