If you’re looking for a tropical hideaway to retire to overseas, why not consider Panama?
Running east to west between Costa Rica and Columbia, Panama is bordered on the north by the Caribbean Sea and on the south by the Pacific Ocean. With a population of about 3 million and a landmass just slightly smaller than Scotland’s, Panama offers expats plenty of diversity - from tropical beachside retirement homes to mountain retreats with cool spring like temperatures.
With a visa and attractive pensionado program for retirees, it’s also easier to retire to Panama than you might think. In this, the Shelter Offshore guide to retiring in Panama we will show you how to go about planning a retirement in this fabulous and exciting country.
In order to retire in Panama you’ll need to have a valid passport, a birth certificate or registered copy, marriage certificate or decri absolute if applicable, a police check from your country of residence, and a health check stating that you’re free of contagious diseases. You’ll also need to prove that you’re in receipt of a pension of about £700 per month. If the pension you receive is a government pension or you’re in receipt of social security, disability allowances or an armed forces pension or a documented pension from an international company you can actually retire in Panama if you’re over 18! For those of us in receipt of private or non-state documented pensions, then the entry age is 50.
A major benefit for those looking to retire in Panama is the country´s pensionado program for retirees, this offers discounts off a large range of goods and services. Discounts for pensioners range from 50% off entertainment anywhere in the country (movies, sporting events, theatre etc.,) 25% off airline tickets, 10% off prescriptions and 20% off doctor’s consultations - to name but a few. There’s also a one time exemption on the importation of household goods up to a value of £6,750, and you’re also exempt from duties for the importation or local purchase of a car every 2 years.
The cost of living in Panama is cheap and offers one of the lowest costs of living in Central America. Direct or cable TV with English language channels runs to around £30 per month, a live in maid will cost about £100 per month, and local fruit and vegetables are cheap from local markets. With regard to the more important commodities – well, a can of beer in a local supermarket will cost around 25 pence, and away from city centres a coffee will cost around 25 pence too.
Rental prices for property in Panama vary with location, for example a rural four-bedroom house with garden can be rented from £350 per month with prices rising to £2000 per month for a large house in Panama city. Rental contracts are usually annual and will in general rise by 15% per annum.
Expats retiring in Panama also benefit from a very modern healthcare system with many overseas trained doctors practicing in Panama; standards in modern hospitals are equivalent to private care in the UK, and health insurance is cheaper than in the UK and readily available.
While living costs in Panama are cheap, you do need to plan your retirement well. In order to live comfortably in your retirement in Panama a realistic figure per month would be around £1,300. This figure will allow you to eat out, travel and enjoy your retirement. Falling into the poverty trap overseas isn’t to be recommended!
