The official State Pension age in the UK is currently 66 years old for both men and women. When that time approaches, many will be looking for pastures new, with many relocating to different countries to enjoy their golden years. As for the best country for retirees, one was a clear winner with this surprising destination hailed as being so lovely that “jaws drop” upon arrival.

According to a recent report on retirement by International Living, one Central American country was hailed as being officially the world’s best place to spend your retirement. This conclusion came after the International Living Annual Global Retirement Index analysed a host of countries where retirees live well, which includes having “a healthier and happier life, spending a lot less money in and getting a whole lot more”.

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Panama was voted the best country for retirees, and with low-cost living, top-notch healthcare, and a welcoming environment, it's easy to see why.

Panama is found at the southern end of Central America and connects North and South America.

Alongside its affordability and hospitable locals, Panama is also famed for having world-class beaches and almost all-year-round sunshine with a diverse landscape including lush rainforests and bustling cities.

Panama’s Pensionado Program is another added bonus and offers retirees a host of tax benefits and discounts, further helping retirees to stretch their retirement budget.

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As most retirees are often big nature lovers, Panama comes out on top with this too and is home to an incredible array of plant and animal life, including monkeys, birds, sloths, amphibians, reptiles, and various marine species.

The Central American country also has a high-quality healthcare system, including bilingual professionals who are trained in the US or Europe, and allows those living there to have affordable and excellent medical care.

Panama is also relatively safe and has become a stable country over the years, making it a welcoming environment among long-term residents.

US expat Jess Ramesch lives in Panama and says her friends' “jaws drop” when they see what Panama is really like.

“As we leave the airport, that incredible city skyline comes into view, mirage-like over the shimmering waters of the warm, tropical Pacific,” she told International Living.

“[My friends] boarded a plane to a little Central American republic, but suddenly they're wondering: ‘Did we somehow land in Manhattan?’ When their jaws drop, I have to laugh.”

She added how the country is “safe, stable and a wealthy country” where most can live a “'comfortable lifestyle” on £1,780 ($2,400) a month.

The expat also said how Panama “doesn't charge tax on foreign-earned income” with property tax at only 0.5% for primary residences with pensioners also offered a host of enticing discounts including 25 % off their power bill, 50% off cinema tickets and 25% off restaurant meals.