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The Pensionado Visa is one of the most popular residency programs in Panama—and for good reason. It’s designed for retirees and offers a wide range of benefits, including substantial discounts on travel, entertainment, restaurants, healthcare, and more. It’s also the most affordable visa because government fees are waived. You will have a permanent visa within six months.
But what if you don’t have Social Security or a traditional pension?
You could get a Friendly Nations Visa, which requires a $200,000 investment in real estate in Panama, or buy a $200,000 3-year CD at a Panama bank.
A permanent Friendly Nations Visa takes about three years to obtain, and the fees for that visa are about $1050 per person, which is higher than with a Pensionado Visa.
A Pensionado Visa is Better!
Good news: you can still qualify for Panama’s Pensionado Visa by purchasing a lifetime annuity that pays you at least $1,000 USD per month for one person or $1250 for a couple.
What Is a Lifetime Annuity?
A lifetime annuity is a financial product typically offered by a life insurance company. In exchange for a lump sum payment, the insurer guarantees to pay you a fixed amount—usually monthly—for the rest of your life. For the Pensionado Visa, the key requirement is that the annuity must pay you at least $1,000 per month for life for one person or $1250 for a couple.
This annuity serves the same purpose as a pension or Social Security in the eyes of Panama’s immigration officials: it proves that you have a reliable, permanent source of income to support yourself while living in Panama.
How to Set Up a Lifetime Annuity for the Pensionado Visa
Work with a licensed insurance company
You’ll need to work with a reputable life insurance provider that offers annuities recognized by Panama’s immigration authorities.
The annuity must not have a clause allowing it to be cashed out; otherwise, it will not be accepted by Panama immigration.
The Online Panama Relocation Guide lists ten highly recommended companies that offer lifetime annuities.
Purchase the annuity
The amount of the lump sum required to purchase a $1,000/month annuity depends on your age, gender, and the terms of the policy. The older you are, the less you typically need to invest upfront to meet the $1,000/month threshold.
Cost of Purchasing a Lifetime Annuity
The lump sum needed to purchase a lifetime annuity that pays $1,000 monthly varies based on factors such as age, gender, and prevailing interest rates. As of February 2025, estimates for a 65-year-old individual are as follows:
Approximately $155,000 – $160,000 to secure a $1,000 monthly income.
For a joint-life annuity covering a couple both aged 65, approximately $180,000 may be required to ensure a $1,250 monthly income.
These approximate figures can fluctuate based on individual circumstances and market conditions. To obtain personalized estimates, consult with financial institutions or use online annuity calculators.
Obtain a notarized and apostilled letter
The insurance company must issue a letter stating the lifetime annuity payment, and this letter must be notarized and apostilled (or authenticated through a Panamanian consulate) to be accepted by Panama’s immigration office.
Other Pensionado Visa Requirements
In addition to proving the $1,000/month income from a lifetime annuity, you’ll need to provide:
*a national criminal background check from your country of residence.
*if married, a certified copy of your marriage certificate
Before you buy an annuity, you should contact a Panamanian immigration attorney who is well versed on getting a Pensionado Visa by using an annuity!
The Online Panama Relocation Guide lists reliable and affordable immigration lawyers.
Why Choose the Pensionado Visa?
Even if you’re not of traditional retirement age, this visa opens the door to:
*Permanent residency in Panama in six months or less
*Discounts of 25%–50% on flights, hotels, medical services, and more
*Fast-track processing!
*Most affordable visa in Panama! Government fees are waived
*You don’t need to wait 3 years for a permanent Friendly Nations Visa.
Reminder: You don’t qualify for the Pensionado discounts until you have a permanent visa. A Pensionado visa will get you a permanent visa in less than six months, compared to three years with a Friendly Nations Visa.
The discounts and advantages of the Pensionado Visa are quite numerous. Look at all the ways you can save money:
- 50% off on recreation and entertainment such as movies, theaters, sports, etc.
- 50% off hotels Monday through Thursday (30% off on weekends)
- 30% off public transportation like buses, trains, and boats
- 25% off airfare to anywhere in the world!
- 20% off restaurants (15% off fast food)
- 25% off electrical, telephone, and water service
- 20% off doctors and specialists
- 20% off prosthetics and other personal assistance devices
- 15% off hospitals and private clinics
- 15% off dental and optometry services
- 10% off prescription medications
- tax-free importation of household goods, up to $10,000
There are many reasons to consider Panama as a place to relocate to. The Pensionado discounts are certainly one of them!
Final Thoughts
Purchasing a lifetime annuity is a smart and legal workaround if you don’t qualify for a Pensionado Visa through Social Security or a pension. It allows you to enjoy all the benefits of retiring in Panama—warm weather, beautiful beaches, modern infrastructure, and an affordable cost of living.
Before purchasing an annuity, talk with a financial advisor and a Panamanian immigration attorney to ensure that you choose a provider and policy that meets immigration requirements.
Combination: Pension and Annuity
If you receive a pension or Social Security, but it’s not enough to qualify for a Pensionado Visa, you can buy an annuity to compensate for the difference. Then, you can combine the pension and the annuity to be eligible for a visa.
For example, if your pension is $750, you can buy a lifetime annuity that pays $250, resulting in a combined $1000 a month in income, which will qualify you for a Pensionado Visa.
Alternative Option: Real Estate Investment
If you have a pension or Social Security but your monthly income does not meet the $1000 requirement, you can purchase residential property in Panama valued at $100,000 or more. The monthly income requirement reduces to $750 for individuals and $1,000 for couples.
Next Steps
Before proceeding, consult with a financial advisor experienced in annuities and a Panamanian immigration attorney to ensure compliance with all requirements and to select a suitable annuity product.
The Online Panama Relocation Guide lists reliable and affordable immigration lawyers, ten approved annuity companies, and all the other contacts and information you will need for a smooth move to Panama.
More of a question: I have a pension but I won’t have access for a few more years. I can show how much the monthly distribution will be once I start receiving payments. Can I use that info now to apply for this type of visa?
Tanya, you need to be already receiving the pension to qualify for a visa.
Many thanks Jackie. Really complete! This appeared in a message sent on 28th February:
Retiree Benefits
Panama takes care of its retirees! If you qualify, Panama has a slew of perks available for you. Please note that anyone of retirement age (women over 55 and men over 60) with a permanent visa is eligible for the Pensionado discounts listed below. You need a residency visa to get these benefits, but it does not have to be a Pensionado visa.
It’s still true, no? Can you get these benefits while applying for a friendly nations visa?
Many thanks
GRaham, You can get the pensionado discounts at any age wit the Pensionado visa
for other visas, you must be 55 for women or 60 for men.
I’m curious if you can use both a pension and an annuity. I have a pension of 750 a month so I am short. Could the annuity make up the difference
Thank you for the valuable information. I would like to inquire if there are any law firms that specialize in the Pensionado Visa you recommend?
Hi Delilah, Our policy is only to make referrals for our customers.
You may want to consider purchasing our Complete Panama Relocation Guide. The guide is available online and includes all of the same information we share during our group tours about how to make a smooth move to Panama. It even contains all of our trusted contacts for immigration, lawyers, real estate, insurance, and more.
Thank you
If you purchase an annuity, but want to delay receiving payments until you actually retire, will that still count towards the pensionado Visa?
HI Jay, you must be receiving the payments to qualify for a Pensionado visa.
I am a 62 year old disabled veteran receiving VA disability at 100%, for the rest of my life. I receive SSDI but plan to switch to regular Social Security when I am 63. Do I qualify for the Pensionado Visa program?
Hello. If your VA disability is at least $1000, you qualify for a Pensionado visa. There are many veteran medical benefits in Panama too… some hospitals bill the VA directly so you do not need to prepay.
Dear Jackie – we have a business that runs in the US whether we are located in the US or not. It generates at least $1250 per month. We are both 54 years old. Would this qualify for the Pensionado Visa? Or do we have to wait until 62 when we can draw Social Security? We do not have a pension. Thank you.
Piney Your business income would not qualify for the Pensionado visa, but there are other visa options! See the Friendly Nations Visa option #4.
https://panamarelocationtours.com/4-ways-to-get-a-friendly-nations-visa