In this article, we will look at the 12 best places to retire in Panama. If you wish to skip our detailed analysis on the economy of Panama and retiring in the country, you may go to the 5 Best Places to Retire in Panama.
Economy of Panama
Panama, a country on the isthmus, is renowned for its striking white-sand beaches, lush rainforests, and majestic mountains. The famous Panama Canal, a remarkable human-engineered waterway, cuts through its center, linking the Atlantic and Pacific oceans and creating an essential shipping route. The country boasts a dollar-based economy characterized by low inflation and the absence of foreign exchange risk.
Not only is the government stable, but it is also democratic and actively seeks foreign investment. Previously classified as a “high-income” country, an economic contraction of 17.9% in 2020 has resulted in World Bank adjusting the country’s status to an “upper-middle-income” country in 2021.
However, in 2022, Panama’s economy recovered, growing by 13.5% compared to the previous year. The country has reported a GDP landing at $76.5 billion or 76.5 billion Panamanian balboas. It has used the US dollar for about 118 years, and the Balboa coins are used interchangeably in the country. The country must sell products or services to make money because the economy is completely market-driven. It’s important to note that Balboa is not a currency, and Panama does not have a central bank. A Banking Superintendency ensures local banks’ solvency and its operations within legal boundaries.
Banco Latinoamericano de Comercio Exterior, S. A. (NYSE:BLX) is one such bank operating in Panama. Also known as Bladex, Banco Latinoamericano de Comercio Exterior, S. A. (NYSE:BLX) is a multinational bank headquartered in Panama City. Other banks operating in the country include Citi Bank, Credicorp Bank, Banco Nacional de Panama. In essence, the Panamanian banking system is home to 56 domestic and international banks. Moreover, the international banking system of the country has been holding over $137 billion in assets as of June 2022.
Retiring to Panama
Panama’s emerging, upper-middle-income economy has been attracting expats from all over the world. One demographic segment that is increasingly becoming attracted to Panama is that of retirees. There are many pros and cons of retiring in Panama. For instance, the country enjoys a tropical climate, which remains sunny and warm year-round. Mountain towns such as Boquete and Volcán can be good options for those looking for cooler climates. Next, the country boasts a low cost of living, and retirees can stretch their retirement incomes further when they live here.
One of the easiest countries to retire to, the Pensionado Visa enables retirees to live in the country. The minimum income requirement (cost to retire in Panama) is only $1,000 and $250 additional for each dependent. Moreover, expatriates are also entitled to generous Pensionado discounts on utility bills, medications, airline tickets, and much more.
Retirees can easily live on their social security paychecks, which is already evident as the number of people withdrawing their checks in the country has been increasing over the years. In 2022, the number of social security paycheck withdrawals was 2,072, adding it to our list of the most popular overseas retirement destinations. Retirees can withdraw this money through any bank, such as Banco Latinoamericano de Comercio Exterior, S. A. (NYSE:BLX).
Many Panama retirement communities stretch through the entire country, and established expat groups can be found in Panama City, Chitre, Boquete, and Santiago, to name a few. Plenty of gated retirement communities in Panama are also available for retirees who wish to feel more secure, such as Lucero Golf & Country Club and Panama Pacifico. Other than the low cost of living, Panama also enjoys public transportation and a diverse culinary scene. The locals are very warm and friendly, and retirees enjoy their time in the country.
Regardless, there are downsides to living in the country as well. For instance, power and water outages are common here. Even though it is for a few hours, retirees may find this inconvenient for them. The pace of life is slow, and there is a language barrier. Many locals know Spanish only and cannot converse in English. Cash is the norm in the economy, and checks or credit cards are rarely accepted.
However, the country is a booming retirement destination, and one of the best cities to retire in Panama is Coronado, Panama. For more best places to retire in Panama, read on below.
Pixabay/Public Domain
Methodology
To compile the list of best places to retire in Panama, we have used 7 (1,2,3,4,5,6,7) sources. We also relied on forums to gather opinions from Panama expatriates about the country’s top retirement destinations. A consensus approach was used to assign scores to each place, with 1 point awarded each time a source recommended a place.
The cost of living of a single person per month living on rent in a 1-bedroom apartment has been sourced from International Living, Live & Invest Overseas, and others.
12. Isla Taboga
Insider Monkey Score: 2
Isla Taboga, or the “Island of Flowers,” is Panama’s best-kept secret island for retirement. The island has vibrant flowers and lush greenery, from palm trees to hibiscus and jasmine. The small volcanic island also houses pristine beaches, lush vegetation, and scenic views. It is a 30-minute ferry ride away from Panama City, where retirees can easily find all modern amenities.
The island itself is home to over 2,000 inhabitants, guaranteeing a relaxed, peaceful environment for retirees. The local and the expat communities are close and well-knit, and there is plenty for retirees to enjoy together. Retirees enjoy whale watching from August to October at the island, snorkeling at Isla El Morro, festivals such as Fiesta del Mar and San Pedro Day, and much more. Since it is an island, the cost of living is a little more expensive than the Panama average. An individual can expect to live here on $1,600 comfortably per month.
11. Santiago
Insider Monkey Score: 2
One of the best places to retire in Panama is Santiago. Characterized by picturesque landscapes, rolling hills, and lush vegetation, the bustling capital of Veraguas province is the perfect location to enjoy the outdoors in peace. Santiago also happens to be one of the cheapest places to retire in Panama, with rents for 1-bedroom apartments as low as $400-$500 per month.
Retirees can buy groceries for less than $300 to last them an entire month, and utility costs are standard too. Healthcare facilities in the city are adequate for both the locals and expatriates, and the pace of life is slower here as compared to other major cities. Panama is also one of the easiest countries to retire to, and Santiago is often a preferred choice for retirees.
10. Chitre
Insider Monkey Score: 3
The picturesque Azuero Peninsula is home to a bustling town called Chitre, and lately, it’s been considered as one of Panama’s top retirement destinations. Proximity to stunning beaches, rich culture, and a growing expatriate community are some of the reasons retirees are choosing this town.
The expat destination is also one of the most affordable, and a single person renting can retire under $1,500 per month. Its location in the “Arco Seco” (Dry Arc) grants it a pleasant year-round weather, even in the wet season. Welcoming locals, professional amenities and services, as well as charming local festivals, add to the charm of retiring to Chitre. The elders are highly valued in their culture, and the overall pace of life is slow and quite laid-back.
9. Las Tablas
Insider Monkey Score: 3
Las Tablas is one of the best cities to retire in Panama, owing to its affordability, climate, and picturesque views. Thanks to its warm and tropical climate, the city has plenty of sunshine all year round. Las Tablas also enjoys a rich cultural heritage, and there are lively festivals and traditional events happening throughout the year. Retirees are also attracted to its small-town charm, living a peaceful and affordable retirement. Some beautiful beaches are also close by, with convenient access to coastal areas.
Healthcare facilities in the city are also adequate, as well as local markets and other amenities. A single individual can retire here on $500-$700, while a couple can live on $1,000. Living near the beach costs a little more, around $1,200-$1,400.
8. Panama City
Insider Monkey Score: 4
Panama City, the famous capital of Panama, is one of the top retirement destinations in the country. The multicultural city is home to many modern amenities, healthcare, and entertainment. Retirees can live a cosmopolitan lifestyle here, with many shopping malls, restaurants, and cultural attractions to explore. Punta Pacifica Hospital in Panama City is top-notch, given its affiliation with Johns Hopkins International.
The city also has a vibrant lifestyle as well as lots of other entertainment to keep retirees from getting bored. There is an international airport here, too, making it easier for retirees to travel and meet family and friends. Its location along the coast is a huge plus for those who love to live near the water, and there aren’t any direct hurricanes either. Rents in Panama City range anywhere between $500-$1,500, and a single individual can live on an average $1,500 monthly.
7. David
Insider Monkey Score: 4
Another popular retirement destination in Panama is David, the capital of Chiriquí Province, in western Panama. David is famous amongst retirees for its affordability, natural beauty, and climate. The city boasts a solid infrastructure with all the basic amenities required to live a comfortable retirement.
Picturesque landscapes, nearby beaches, and majestic mountains add to the beauty and appeal of this city. Healthcare is also adequate for retirees, with many expatriates settling here. A single individual can retire comfortably at under $1,000 per month, while couples can live at $1,400. Besides being affordable, retirees can also find plenty of options for shopping, food, and other services.
6. Bocas del Toro
Insider Monkey Score: 5
Bocas del Toro Town, or Bocas Town, is another one of our favorite retirement destinations in Panama. Pristine beaches such as the Starfish Beach and the Bluff Beach, lush rainforests, and rich biodiversity makes the town a dreamy place to retire. Retirees enjoy lots of water-based activities such as scuba diving, snorkeling, boating, and swimming.
The town has also been attracting people of various cultures and is a great place to live for those seeking a multicultural community. The nightlife is vibrant here, making it a top tourist destination in Panama. Rents for a one-bedroom, one-bathroom apartment range from $600 to $800 per month, and the cost of living for a single retiree is similar to that of Panama City and Boquete ($1,500).
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Disclosure: none. 12 Best Places to Retire in Panama is originally published on Insider Monkey.