Retirees Can Live Comfortably for Under $2,000 a Month in This Charming Country
This Central American country offers stability, urban amenities and a chill lifestyle for ex-pats. It's also wildly affordable.
Panama may not be at the top of most retirees' favorite destinations. However, Americans searching for a retirement port of call should look closer at the Latin American country that serves as a “crossroads of culture” connecting North America to South America.
Why Panama? First, its track record is excellent; a survey by Expat Insider found that Panama was the most popular country among expats for a second year in a row. Second, travel and retirement experts point to this country's unique geographical setting. At its narrowest point, the Isthmus of Panama separates the Pacific Ocean from the Caribbean Sea. Yet Panama connects more than it separates, and it's more than happy to welcome American retirees.
“Panama is a great living option because it has warm weather, friendly communities, and a lower cost of living than many U.S. cities,” says Melissa Harms, a travel expert and founder of the Everyday Family Travel blog. “The Pensionado program offers some great financial perks, but what really makes Panama special is the mix of modern conveniences and cultural experiences families can enjoy together. Spots like Boquete and Coronado have strong expat communities, good schools, and many outdoor activities, making it easier for retirees and their families to adjust and feel at home.”
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Retired Americans living in Panama
Americans who have moved to Panama say they’ve never looked back.
“I moved from Dallas, Texas, to Panama in 2010 and found a home here,” says Jackie Lange, owner of Panama Relocation Tours, a local travel and real estate company that started when Lange’s real estate friends visited. She had to hire a bus to drive them around.
After 15 years in the country, Lange views Panama as an ideal landing spot for US retirees.
“Panama is a favored destination for retirees for many reasons,” Lange says. “Panama uses the US dollar [in addition to the Panamanian balboa], so there’s no exchange rate. Plus, the cost of living in Panama is much less than the US, and there are no hurricanes.”
In Panama, Lange says retirees can pick their ideal temperature based on the elevation.
“At the coast, it's about 90 degrees, on average,” she notes. “Yet for every 1,000-foot increase in elevation, the temperature drops four degrees. I live in Boquete, in the highlands, where you don't need an air conditioner or a heater. The $20 electric bills are nice.”
As with any foreign country, look up its U.S. Government travel warnings before you go. In the case of Panama, the State Department recommends avoiding parts of the Mosquito Coast and the Darién region due to crime. According to the 2024 Global Peace Index, however, Panama is more peaceful than the U.S., so there's no need to be alarmed.
An inside look
As a retiree or someone nearing their post-working years, is Panama a great landing spot? Here’s a closer look at the country and the potential upsides and downsides of making the country your retirement home.
Health care in Panama
The most pressing healthcare issue for older US ex-pats when retiring in Panama is getting health insurance.
“For example, if you have pre-existing conditions, like high blood pressure, Panama insurance will exclude the existing condition for at least two years and then only cover it at 50% thereafter,” Lange says. “And if you are over 74, most health insurance companies will not write a new policy. And if you’re diabetic, you cannot get Panama health insurance.”
Fortunately, retirees can easily use the nation’s public health system.
“There’s no monthly fee, age restrictions, or pre-existing condition restrictions,” Lange notes. “It's $2 to see a doctor or $5 for a specialist.”
Medicare Advantage also covers urgent care and emergencies at private hospitals. “Some hospitals offer direct billing with the Medicare Advantage insurance company,” Lange adds. “But some hospitals require you to pre-pay and then file your own claim.”
Panama’s medical centers offer good, quality service. “Plus, they cost much less than U.S. private hospitals,” says Paul Fournier, a travel writer and Founder of Journey Compass, an in-depth, online travel guides platform. “In Panama City, for instance, you’ll find some of the best, and many doctors speak English, so communication isn’t a problem.”
Medicare Advantage is likely the best bet for a U.S. retiree seeking health care in Panama, but it’s likely not enough.
“Advantage may offer great emergency coverage for stays outside the U.S. for either six months or up to one year,” says Wes Chapman, Founder of Fortende Health, a Medicare plans advisory firm that specializes in helping retirees who spend time outside the U.S. navigate healthcare benefits. “Many Medicare Advantage plans offer excellent coverage for emergency care and 'in-network' rates for participating beneficiaries, but once you’re stabilized in the hospital, if you are moved to inpatient or require advanced care, you risk significant financial exposure.”
That means getting additional healthcare coverage. “Consider GeoBlue for post-ER and continued inpatient and advanced care if you don’t intend to pay out of pocket,” Chapman says.
How to get a retirement visa in Panama
Retiring in Panama isn’t just about saving money — it’s about enjoying a better lifestyle.
“The low cost of living, warm weather, and amazing views make it a top choice for U.S. retirees,” Fournier notes. “Panama’s Pensionado Visa program makes moving there simple and even gives retirees discounts on daily expenses, which makes life more affordable.”
The program is beneficial for saving on healthcare, transportation, and entertainment.
“After five years, it also gives retirees permanent residency, which makes settling down much easier,” Fournier adds.
U.S. Retirees can get a Pensionado Visa if they make at least $1,000 monthly in lifetime income (Social Security). “You can add $250 for your spouse,” Lange says. “When you apply, you’ll initially receive a temporary visa. But within six months, you'll get your permanent visa, which allows you to live in Panama indefinitely.”
Once you get your permanent visa, you qualify for specific Pensionado discounts, such as 50% off on recreation and entertainment, including movies, theaters, and sports; 50% off hotels Monday through Thursday (30% off on weekends); and 30% off public transportation like buses, trains, and boats. “You can also get 25% off on airfare to anywhere in the world,” Lange notes. “You’ll also get 20% off restaurants, 25% off electrical, telephone, and water service, and 20% off doctors and specialists, among other perks.”
If moving costs are a concern, the Pensionado visa offers any incoming citizen tax-free importation of household goods up to $10,000, tax-free importation of a vehicle, or tax-free purchase of a local vehicle. “You’ll still have to pay fees to import a car,” Lange notes. Those fees can cost $2,000 and upward.
Panama has a low cost of living
Price-wise, Panama is an affordable destination for both remote workers and retirees.
Depending on location, rental prices for a two-bedroom home usually range between $750 and $1,500 per month, while purchasing one ranges between $150,000 and $300,000.
“Eating out is affordable too,” says Wayne Kask, a Tampa, Fla.-based travel writer and the founder and CEO of Discover West Central Florida. “You can get a nice meal for about $15 to $25. Monthly groceries usually cost around $300, and utilities usually max out at $200 per month, or much less.”
U.S. retirees can catch further tax breaks when relocating. “Panama doesn’t tax foreign-earned income, so your U.S.-based earnings stay untouched,” Harms says.
While Panama’s cost of living is low, retirees should plan ahead financially before moving.
“Devise a budget accounting for potential currency fluctuations and consider opening a local Panamanian bank account,” says Joe Cronin, President of International Citizens Insurance in Boston, Mass. (Cronin has spent 20-plus years helping expatriates and travelers make sound financial decisions while moving and traveling abroad.) “Retirement savings can be further utilized by obtaining additional services through the Pensionado Program.”
Best places for retirees in Panama
Your Panama landing spot depends on whether you favor those urban amenities in Panama City, prefer beach living, or want a slower pace and cooler weather inland.
If it’s the latter, Harms advises checking out three locations: Pedasí, in the Los Santos province; Santa Fe, in the Varaguas Province; and El Valle de Antón, in Coclé province.
“Affordable housing and a relaxed atmosphere characterize Santa Fe, a sleepy mountain hamlet,” she says. “Beautiful scenery, a wealth of outdoor activities, and a friendly community make El Valle a great place to call home. Families seeking a gentler pace by the sea will love Pedasí, a quaint seaside town with a laid-back vibe.”
Big city living is available, too.
“Panama City is a thriving, modern metropolis with an impressive skyline, fine dining, and cultural attractions, while the historic Casco Viejo district offers charm with its cobblestone streets and colonial architecture,” says Victoria Levitam, managing partner at the real estate company The Agency Panama. “For those seeking more exclusivity, areas like Punta Pacifica and Santa Maria provide high-net-worth individuals with luxury residences, top-tier amenities, and excellent healthcare.”
Island living is also available in Panama, with cool breezes and stunning views.
Sited on a man-made island in the Pacific, “Ocean Reef Islands offers a unique island lifestyle with a private marina featuring over 150 moorings up to 60 meters, just minutes from Panama City," according to Levitan. "Pearl Island provides a pristine barefoot luxury escape with more than seven beaches and 60 islands to explore,” Levitam adds. “Both developments offer retirees an exceptional maritime lifestyle, with direct access to world-class fishing.”
Non-stop direct flights to and from the US at Panama City’s Tocumen International Airport on major airlines like Delta, United, and Panama’s Copa Airlines make it easy to connect with major cities like Atlanta, New York City, Chicago, and many more,
“I just took a non-stop 4-hour flight from Panama City to Austin, Texas,” Harms says.
More On Where To Retire Abroad
- Where to Retire 2025: Puerto Rico
- Where to Retire: Living in Portugal as a US Retiree
- Where to Retire: Living in the Dominican Republic
- Retire in Thailand, Where 'The White Lotus' Was Filmed
- Retire in New Zealand for Lush Landscapes and a Relaxed Vibe
- Retire in Italy for Culture and Beauty
- Retire in Greece for Relaxed Living With a Cinematic Backdrop
- How To Manage Retirement Savings When Living Abroad
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