A friend used the word 'retard' recently and I pulled her up on it, saying that it is considered by many to be offensive. She is German and had not heard this and asked the reason behind it. I have searched a bit but not found a concise and clear answer.
She also asked what is considered to be the correct term that would not offend people. Would that be 'a person with special needs'? That is pretty general all encompassing, though, isn't it?