How to Retire in Panama on Social Security | Retire In Panama Tours (2024)

So, you are at the time in your life where you are counting down the final years to you retire and receive your Social Security benefit, or maybe it is just months away. You have done your homework, and like many others, you are looking at that number, and it is not as much as you were hoping it was going to be.

Retiring abroad to a place like Panama has been on people’s minds for years now, but it is not just retirees moving out of their country who are considering this option. Retired US citizens living in America can retire to Panama and still receive their Social Security benefits. However, there is debate over whether or not they will be able to live comfortably enough with these funds alone? In this article, we will discuss whether someone from the US can retire in Social Security in Panama, as a single, or as a couple.

Many individuals in the United States approaching retirement age find out that their cost of living has risen more than they expected. Their monthly retirement income may not be enough to support their current lifestyle when they stop working. They’re investigating methods to cut expenses while maintaining the same standard of living.

Just so you can live, confirm your life to a more modest standard of living. Instead, look for a cheaper home to reside in so that your monthly income has the opportunity to go further.

What is the Average Social Security Check?

Retiring abroad as a US citizen can be an exciting adventure that may help you save money on living costs. Retiring in Panama is especially attractive for those who want to live more cheaply than they might at home and yet earn enough income from their Social Security benefits to cover expenses.

Retirees who qualify for the Pensionado Visa have no restrictions on earning from Social Security benefits or spending. Still, some lifestyle changes will need to be made if you hope to retire in Panama on Social Security alone.

What is the average Social Security Check? The current average Social Security benefit checks in the United States for an individual in May 2021 was $1,430*. This amount qualifies you for the Pensionado Visa, which requires you to have a lifetime pension of more than $1,000 per month. ($1,250 for a couple)

Retire to the country of Panama and live off your social security check. Retiring abroad as a US citizen can be an exciting adventure that may help you save money on living costs. Retiring in Panama is especially attractive for those who want to live more cheaply than they might at home and yet earn enough income from their Social Security benefits to cover expenses. * Source

What Can Panama Offer?

Climate of Panama

The country of Panama offers multiple climates, from the temperate mountains to the tropical Pacific region. It has most of the amenities and comforts you would expect back home and a huge community of expats and retirees in the big cities.

Cost of Living in Panama

The dollar goes a lot farther in Panama than in most countries. For instance, with just $1500 per month, you could live quite comfortably there. With $2500 per month, you can live extremely well there. And when we’re talking about Latin America — where the average salary is only around US$1000 or so — prices for things like groceries and toiletries are very reasonable compared to other places in the world.

The Panama Pensionado Visa

The Panama Pensionado Visa is a permanent residency visa for people who can show they receive at least $1000 income per month ($1,250 for a couple), which allows you to retire in Panama on social security if your country of origin has social security benefits. This low amount makes it possible to live comfortably with just $1,500 per month and still enjoy all that living in the beautiful country of Panama.

The process for obtaining this Visa will cost about $2,000 for a single, and $3000 for a couple, and takes approximately 4 months. You’ll get a temporary visa in about three weeks and a multiple entry visa in your passport, so you can come and go as you please as you await your permanent Visa.

The Visa comes with the following perks:

Reasons to Retire in Panama

There are many reasons to retire in Panama, which we mentioned a few above. Let’s go into more detail on some.

Low Cost of Living in Panama

Life in Panama is relatively inexpensive, but it varies depending on the city you select. Nonetheless, with $1500 to $2500 a month, you could live pretty comfortably in the interior regions of the country, places like Pedasi, Boquete, Volcan, and others (with basic rents starting as low as $500 a month).

If you choose to live in the Panama City or the Coronado beaches area, you will pay a lot more for rent, so you are looking at more like $2500 – $3,500 for a comfortable lifestyle.

Cell service costs just $30, and Internet and utilities cost around $150 per month, except for air conditioning, which will cost you another $100 a month at the beach, and it is not needed in the mountains. Groceries cost will depend totally on how you eat and where you shot.

If you eat in Panamanian restaurants (lunch for $3.50) and shop at the farmers’ markets, food can be very inexpensive in Panama, as little as $200 – $300 a person.

If you eat at high-end restaurants and shop at North American-style grocery stores, you will pay more. So, suppose you receive $2,500 a month in Social Security as a couple and take advantage of the Pensionado discounts (you can get all the discounts listed above). In that case, you can live in Panama on social security. Even going to the movies can cost as little as $4.

Affordable and good Healthcare in Panama

Healthcare in Panama is one of the biggest reasons to retire in the country. Healthcare services are a fraction of what you’d pay back home, and there’s a variety of medical facilities available for retirees.

For instance, Punta Pacifica is affiliated with Johns Hopkins Hospital in Baltimore and is one of the most technologically advanced hospitals in Latin America.

For someone in their early sixties, you can get private hospital health insurance plans for as low as $110 per month, or opt for an international plan which will cost you about $300 a month, for full 100% coverage, no co-pay, and no deductible in Panama.

Healthcare pay out of pocket prices in Panama are not only cheap by US standards, but they also have high-quality service. The average price for a procedure can be as little as 25% of what you’d pay in the United States. Many retirees come to Panama where their co-pay and deductible back in the US cost more than the complete treatment in Panama. There are a variety of private clinics and hospitals, both English and Spanish-speaking doctors.

In rural areas of the country, doctor visits cost $15, labs and x-rays also start at this price. In the city, you will pay more, but a visit to a GP for a consultation will rarely cost you more than $35.

Watch the below comprehensive Q & A about Health Care in Panama. We interview 2 health care insurance experts to tell you want is available in Panama for health care.

Things to Do in Your Retirement in Panama

Weekend trips to the beach are popular among retirees who have chosen to reside in Panama’s rural towns and prefer the cooler temperatures of the mountains. They go to the beach on weekends frequently because they enjoy it so much. The trip is only about an hour-long drive, and it’s a great inexpensive way to unwind for a few days. This is like a mini-vacation that you can do many times a year that will cost less than going on your annual trip to Hawaii or Mexico.

There are many other activities available in Panama, things like hiking (there’s plenty of trails), pickleball (a sport similar to tennis), birdwatching, zip lining, kayaking, tennis, river rafting (many rivers in Panama for rafting), golf (plenty of courses) and horseback riding.

Hiking is a great activity available during retirement years in Panama because there are many trails set up along the mountainsides. A great way to keep active and stay fit. Another popular outdoor recreation activity is pickleball. Pickleball is a sport that is a combination of tennis and badminton that has become very popular since it was invented.

Birdwatching in Panama is something anyone would love to do when retiring here because more than 850 species are known throughout the country, including such rare species as harpy eagles, resplendent quetzal, and green macaw. There are many national parks where birdwatching is a popular sport among retirees during their free time.

For the more adventurous, kayaking is another popular activity among locals who live in the mountains of Panama because there are plenty of rivers with varying degrees of difficulty depending on what you prefer. There are also lots of kayak tours that are available to locals during retirement.

In every expat community, you will have different volunteer groups, bridge clubs, trivia nights. No worries, you will be bored in Panama.

Conclusion

So you want to retire in Panama on social security, well, retired life can be one of the most rewarding times, full of freedom and new adventures. Retirees can travel more without worrying about work or family obligations. Retiree’s also have a lot of time for hobbies and things they enjoy doing during their free time.

Healthcare is affordable, the cost of living is cheaper, weather is perfect all year round, and many retirees find it easier than ever to keep themselves entertained with birdwatching, hiking, kayaking, pickleball, and golfing and horseback riding just some examples available here.

Remember, the lifestyle in Panama is not for everyone, so you must ensure that this is the place where you want to live before moving there. On one of our Retire in Panama Tours, we will visit all of Panama’s expat communities, experience all of the climates, eat the cuisine, learn about the culture and meet with professionals who can help you make the decision, and find out for yourself, if you can retire in Panama on Social Security

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