Dreaming of a carefree retirement overseas? Deciding on where to spend those golden years can be a challenge. Luckily, International Living compiles the Annual Global Retirement Index, the definitive survey of retirement locations worldwide. Check out the 24 best places and start planning your perfect retirement now.

The index is based on 12 categories, ranging from cost of living, healthcare and retiree benefits to climate, governance, ease of investing and renting, each of which is scored out of 100. These scores are added up and an average final score is calculated for each location.

Beautiful Bali offers retirees terrific entertainment and amenities according to the latest index, and is particularly welcoming, scoring highly in the 'fitting in' category. Be that as it may, the Indonesian island was awarded just 62 for development, the lowest in the top 24.

Staying in southeast Asia, Vietnam is an up-and-coming destination for retirees, and for good reason. As well as the favourable climate, the cost of living in the country is very low and renting is incredibly affordable.

This Caribbean paradise is heavenly for all sorts of reasons, offering wallet-friendly real estate, healthcare and more. Obtaining a residency visa though can be rather difficult for some, with the Dominican Republic scoring just 59 in this category.

An increasing number of foreign nationals are choosing to spend their twilight years in the Philippines. Reaching the 21st spot on the index this year, the country is considered especially welcoming and amenity-rich, but scores relatively poorly in terms of property.

Next up is Uruguay. The South American nation has garnered an overall score of 78.1 on the latest index and scores highest in the entertainment and amenities and development categories.

One of six European countries that made this year's top 24, Ireland bagged the highest score on the index for fitting in. The country is also rated highly on development and governance, but the weather lets it down, scoring just 68 for climate.

Back to South America, Bolivia entices plenty of overseas retirees thanks to the low cost of living, pleasant climate and more, but benefits and discounts for older people are disappointingly few and far between.

Belize tops the wish-lists of many retirees who can't resist the Central American country's tropical climate, stunning beaches and relaxing pace of life. But the country's biggest plus is its people, who are extra-welcoming if the high score of 95 in the fitting in category is anything to go by.

Ideal for retirees on modest pensions, Cambodia has the most affordable cost of living in the top 24, scoring a perfect 100 in this category. The major letdown is the lack of benefits and discounts for retirees in the country.

In contrast, France is an expensive country, scoring just 57 for cost of living, but the nation has plenty to offer for affluent retirees, from outstanding entertainment and amenities to first-class healthcare.

Like the other southeast Asian nations that made the top 24 this year, Thailand rates especially-highly for cost of living – retirees can live very comfortably on very little in the country, which also scores highly in the fitting in and entertainment and amenities categories.

Living costs are fairly high in Malta, but that doesn't stop people from retiring to the Mediterranean island nation, which is highly rated in a number of categories, including fitting in, development and entertainment and amenities.

The island of Roatán in Honduras features in 12th place on this year's index. Nice and affordable, the island offers solid infrastructure and healthcare, and is notable for its friendly residents, though the score of 71 in the governance category is on the low side.

A good all-rounder, Italy boasts high scores across all 12 categories, offering retirees the real dolce vita, but the country, which is of course a cultural superpower, is rated highest on entertainment and amenities.

Another country where the cost of living is refreshingly low, Peru is rated highest for its affordability, not to mention the climate, which is warm but not too hot, and offers plenty of year-round sunshine.

A perennially popular retirement destination for foreign nationals, particularly those from the UK, Spain is a sure bet. Living expenses are cheaper than most European countries, the weather is fabulous, healthcare is top-notch and entertainment opportunities abound.

In the eighth spot this year, Nicaragua is rated highest on cost of living. Like other countries in the region, it's possible to live the high life on a fairly modest pension. The nation also has strong scores in the healthy lifestyle and entertainment and amenities categories.

Spain may attract more retirees overall, but its neighbour Portugal isn't far behind and, according to the latest index, has the edge for retirees, landing especially high scores for development, healthy lifestyle, governance and fitting in.

Colombia is in sixth position this year. The South America nation is a great place for retirees, scoring exceptionally well in most categories, including cost of living, healthcare and healthy lifestyle.

The best destination in southeast Asia for retirees, Malaysia kicks off the top five. Its highest scores are in the entertainment and amenities, healthy lifestyle and fitting in categories.

Ecuador has been awarded a score of 88.3 this year. The Latin American nation is fast-becoming a magnet for overseas retirees and it's not hard to work out why, given its high scores over all 12 categories.

North American seniors in particular have been flocking to Panama in recent decades. The central American nation is thoroughly geared up for retirees, with great benefits and discounts, fantastic entertainment and amenities, affordable apartments and a whole lot more besides.

Mexico also attracts its fair share of retirees, who are drawn to the country for its welcoming people, budget-friendly cost of living, wonderful climate and decent healthcare. No wonder the nation scores so highly in this year's index.

When it comes to retirement destinations, Costa Rica really is unbeatable. The friendly central American nation really does have it all, from economical living costs to excellent healthcare, entertainment and amenities.