The South American nation bordered by Colombia and Peru topped the website's annual global retirement index of 25 best countries, scoring high points for affordable cost-of-living, entertainment and amenities.
Next are Panama, Mexico, Malaysia and Costa Rica, rounding out the top five nations in the index that looks at eight criteria to determine the best countries for retirement.
"The world's top retirement havens for 2015 may dot the landscape from Asia to Latin America to Europe, but they share certain assets," said Jennifer Stevens, Executive Editor of InternationalLiving.com.
"They're safe, offer good value and are places you can settle with relative ease," she added in the statement announcing the results.
Ecuador scored 92.7 out of 100 points, with top marks for climate, cost of renting or buying property and discounts on flights, public transportation and utilities offered by the government for retirees.
"Although prices have risen slightly in recent years, Ecuador's real estate is the best value you'll find anywhere," said Dan Prescher, Senior Editor at the website.
Panama is considered the best destination in Central America and offers a Pensionado visa, which is available to anyone with a lifetime pension of more than $1,000. The visa offers discounts on medical services, entertainment, meals, air fares, as well as electricity and phone bills.
"For under $2,000, a couple can live comfortably in a country with a well-earned earned reputation for being expat-friendly," according to the website.
Malaysia, the top retirement country in Asia, earned high scores for ease of fitting in, entertainment and amenities, as well as low cost of living. A meal with a bottle of wine can cost as little as $5 and a visit to the doctor just $15.
In Europe, sixth-place Spain was the top retirement nation thanks to its warm climate and low cost of living compared with other European countries. Spain scored top marks for infrastructure, a health-care system recognized by the World Health Organization as one of the best in the world, and entertainment.
Neighboring Portugal came in at No. 9, followed by Thailand, which won points for low healthcare costs, culture and affordable housing. Seventh-place Malta and Colombia at No. 8 completed the top 10.