Cyprus "number 1" retirement destination

Cyprus has topped the list of places to retire to as a result of its cheap costs of living.

The Mediterranean island took the top spot in a ranking of potential retirement destinations for expats on online resource Shelter Offshore.

According to the article, despite the fact that Cyprus is now in both the European Union (EU) and eurozone - meaning its currency is the euro - it remains the most affordable place to retire overseas.

"It charges a maximum of five per cent income tax on pension income – meaning that it is far cheaper to live in Cyprus even with the pound buying fewer euros these days," Shelter Offshore suggests.

People looking to retire abroad but who have financial commitments in the UK could find that an exchange rate calculator helps them to keep on top of their monetary situation.

Cyprus became a member of the EU in 2004.