4 Reasons U.S. Retirees Are Flocking to Settle Down in Panama

4 Reasons U.S. Retirees are Flocking to Panama

Several factors influence retirees to settle in Panama. For example, climate and cost of living are some of the greatest influences on American retirees. Discover the four main reasons U.S. retirees are moving to Panama.

1. Climate

Weather activity in Panama varies according to the region. For example, the Caribbean side of Panama sees far more precipitation than the country’s Pacific coast. However, temperatures across the country seem to stay consistent, rarely dropping below the mid-70s ºF. Panama’s warm temperatures year-round attract retirees looking to escape the cold and bitter winters of the north. In Panama, retirees can enjoy summer temperatures even during winter months, making it an ideal location for retirement.

2. Financial Benefits

Cost of living in Panama ranges according to the city and region. Overall, though, Panama’s cost of living is low and affordable. Some estimates claim Panama’s cost of living to be as much as 49% lower than that of the United States. For example, monthly food costs in Panama lie 30% lower than food costs in the U.S. Transportation, too, is far cheaper in Panama, as are entertainment, clothing, and doctor’s visits.

Rent and housing in Panama are also affordable for retirees. Rent in Panama City ranges from as low as $600 up to $2,100. On average, rent in this capital city measures 68% lower than rent in Seattle, Washington. Additionally, Panama does not tax income sourced outside the country. Only income earned within Panama will be taxed. Therefore, American retirees who no longer work or work remotely will not have to pay income tax when living in Panama.

3. Natural Beauty

Perhaps one of Panama’s most attractive features is its natural landscape. From volcanoes to rainforests, Panama has much to offer in terms of natural scenery and biodiversity. For instance, two major mountain ranges divide the country’s Atlantic and Pacific coasts. The tallest peak in Panama stretches an impressive 11,401 feet high. The peak is called Barú and is an inactive volcano. Other amazing natural features in the country include savannas, rivers, coastlines, and forests.

Panama is biodiverse, hosting a wide range of plant and animal species. Mangrove trees reside in the country’s tidal lands, and coral reefs line Panama’s magnificent coast. Some stunning plants include the Madagascar periwinkle, the jungle geranium, and the papaya fruit. Animals unique to the region include armadillos, sloths, and jaguars, as well as a plethora of giant sea turtle and bird species.

4. Safety

Panama is one of the safest countries in Central America, second only to Costa Rica. Panama’s capital, Panama City, records a moderate crime index of 49.11 and a moderate safety index of 50.89. By comparison, the capital city of the United States, Washington D.C., records a high crime index of 60.83 and a low safety index of 39.17.

Based on these statistics, Panama City appears significantly safer than Washington D.C. While Panama’s homicide rate measures slightly higher than that of the United States, the U.S. experiences far greater violent crime and property crime overall. Therefore, retirees find Panama’s moderate safety levels more attractive than the safety indexes of major U.S. cities.

Cons of Retiring in Panama

While Panama offers many attractive features and benefits to U.S. retirees, some cons exist, too. For one, some parts of Panama, like the United States, are extremely dangerous. Areas of the Mosquito Gulf and Darién Region record increased criminal activity, including human and drug trafficking. Retirees that desire to live in Panama must be cautious of where they move to.

Additionally, infrastructure in Panama may appear to be lacking in certain areas. Rural regions in the country may lack sufficient funding and resources to create safe and acceptable roadways and bridges. Government programs and aid may not be readily available to those that require accommodations, especially if they are not citizens of Panama. It’s likely that Panama’s infrastructure and organization does not compare to those of the United States.

Finally, medical technology in Panama is limited for retirees. Retirees in need of expert medical attention may not receive the care and resources they need to best live their remaining life. Panama’s healthcare and medical technology isn’t as advanced as healthcare and technology in the United States, making solutions to serious health concerns difficult to encounter in this country.

What are the Best Cities in Panama for Retirees to Live?

Where retirees choose to live in Panama largely depends on personal preference. While some retirees may enjoy life near the mountains, others may prefer a tropical climate and landscape. Luckily, Panama’s cities offer a variety of lifestyles for U.S. retirees. For example, those who appreciate city life should consider moving to Panama City, where retirees can enjoy an assortment of activities like shopping, dining, entertainment, and more.

On the other hand, retirees that desire to escape the city should consider moving to Bocas del Toro, which features a tropical landscape, incredible beaches, and limited development. Another beach town that attracts retirees is Coronado, which lies an hour from Panama City. Coronado hosts many retirees with its amazing golf courses and excellent healthcare institutions. Retirees are not limited in their choice of cities, though, as many appropriate and incredible locations exist across Panama. 

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