NEW YORK (TheStreet) -- When some people think of retirement, they imagine taking long trips to far-away places. But what if you could spend your retirement not just visiting these destinations, but living in one?
Live and Invest Overseas, an overseas investment, real estate and retirement resource, has published its annual "Retire Overseas Index." The 21 cities in the Index are determined by the following factors: climate, cost of living, English spoken, entertainment, environmental conditions, existing expat community, health care, infrastructure, real estate, residency options, safety and taxes.
There is not one retirement destination that is perfect for everyone, but the Index is meant to help narrow down a retiree's options based on personal preferences, lifestyle and needs.
In the past, cities in South and Central America ranked high in the Index. However, the rise of the U.S. dollar has made European cities more popular for retirees. This year, three of the top five best places to retire are in Europe.
Note: If you're thinking of retiring overseas, know that it will impact your Medicare coverage, and that you will still have to file your federal tax returns.
So, which cities made the list? Click through to find out.
21. Da Nang, Vietnam
Monthly Cost of Living: $840
A coastal city that was once a French colonial port, Da Nang has recently started flourishing as a travelers' destination. The area's biggest draws are the sandy beaches, Marble Mountains, and Dragon Bridge, as well as local museums and restaurants. With a very affordable cost of living and tons of things to do, the growing city has become popular among expats.
20. Cebu, the Philippines
Monthly Cost of Living: $900
Founded in the 16th century by Spaniards, Cebu City is the oldest city in the Philippines and is the capital of the island province of Cebu. The island's spectacular beaches and diving spots in addition to the city's active nightlife make Cebu a popular destination for outsiders. Luckily for expats, the cost of living is low, and English is spoken pretty much everywhere.
19. Buenos Aires, Argentina
Monthly Cost of Living: $1,330
The capital and largest city in Argentina, Buenos Aires prides itself on its dual heritage of European and Latin American influence. The city of "Good Airs" boasts historic sites, art exhibits and a night life that never sleeps.
18. Barcelona, Spain
Monthly Cost of Living: US$1,580
One of the largest cities in Europe, Barcelona is known for its beaches and the recognizable Catalan architecture that lines its streets. The gorgeous beaches, tapas restaurants and great works by Gaudi help to keep life active and beautiful, making Barcelona a popular destination for retirees.