Located in the Bay Islands of Honduras, Roatan is home to the worlds second longest coral reef, warm ocean waters and long strands of white sand. English is the primary language, the U.S. dollar is accepted, and real estate prices have come down in recent years. Theres an established expat community. Retirees looking for a Caribbean experience for less probably wont be disappointed; a couple could live off of $1,200 a month here, per the Global Retirement Index for cost of living.