Hola,
My wife and I thought about moving overseas a few years ago , but decided to stay in the USA.
We did a lot of research on a lot of countries, but Ecuador was the most appealing. This forum is a good source of information, because it gives equal time to opposing points of view. I think the best information comes from expats who actually live in Ecuador, so read their blogs and get to know what day-to-day life is like for them.
Be careful. Dreaming about a better life can blind you. The same skunks who talk us into lousy car loans and worthless health insurance are selling over-priced condos in Cuenca and saying you can live like a king for $1,000 a month. Greed knows no borders.
Learn to speak Spanish. If you can't have a conversation with your neighbor or go to a grocery store without an interpreter, what kind of life do you have?
I think it's possible to move to a foreign country and retire with dignity, but I don't think it's easy. On the other hand, if you're prepared and realistic, it could be a hell of a challenge and adventure.
For us, the hassle and uncertainty outweighed the benefits.