With the ever-increasing costs of living in the UK one can imagine that retiring here can be a daunting prospect. With pension income predicted not be a sufficient amount for many people in the UK to retire on it seems reasonable that many Brits are choosing to retire abroad.

So if you are planning on retiring on a budget, where are the best places to go? Globalpost have compiled a list of locations around the world that will not cost you an arm and a leg. They have used information from the Cost of Living Index put together by the Economist Intelligence Unit, which compares the cost of living in different places around the world with that of New York City.

As a hot favourite, Globalpost chose Costa Rica as one of the cheapest and most desirable locations to retire in. They suggest it has a high standard of living in comparison to the US or Europe and boasts great beaches, forests and other amenities. In second place, they choose Ecuador, which has made it in to the top of the charts for the second time in recent months as it was named 2009’s World Top Retirement Haven by International Living magazine. It is renowned for its economical real estate prices, for example in Cuenca one can rent a condo for as little as $300 or about £180 per month.

At the other side of the world, Thailand and Malaysia were both quoted in the top 10 most economical places to spend retirement. Thailand is renowned for its beaches, food and of course massages which you can get for less than £7. While Malaysia seeks to attract more retiring foreigners they offer a favourable 10 year visa which can be renewed.

It is important to note that in some countries the healthcare provision is not as advanced as the UK, which should be a consideration when looking for a retirement destination.