Worried About Retirement?

Are you worried about having enough retirement savings? You’re not alone.
However, retiring in Panama could lighten your stress.

Retirement is an exciting time of your life. It could be a time to make a move, start a new hobby, or just slow down and enjoy the simple things. However, that’s not to say that retirement comes stress-free. In fact, many people worry about having enough savings to retire–especially North Americans

For this reason, retiring in a country with a more affordable cost of living is becoming a popular (and viable) option for those looking to get the most for their savings. Panama has been named one of the best countries to retire for many years because of the many retiree benefits–namely the low cost of living and Pensionado discounts. The Pensionado discounts include 25% off airfare worldwide, 25% off electric bills, 20% off at restaurants, 50% discount at movie theaters, and more!

In the U.S., 20% of adults 50+ have no retirement savings. A recent AARP survey revealed that 1 in 5 adults ages 50 and over in the U.S. worry that they don’t have enough money to last for the remainder of their years. Additionally, it found that 61% aged 50+ are worried they don’t have enough savings to last their retirement.

It seems as though everyone is concerned about staying afloat financially after retiring. Only 40% of men and 30% of women surveyed thought that they were regularly saving enough money for retirement.

However, with inflation on the rise, there is a concern about a retirement crisis in the United States. While those with jobs that offer retirement plans generally do better with their savings. However millions of people aren’t offered retirement plans at their places of work.

With money a major concern for those nearing retirement age, many are considering alternatives, such as living in a “cheaper” country.

How much savings do you need to retire in the US?

This seems to be the elusive question that many are trying to answer. When it comes to planning your retirement budget, there are plenty of factors to consider, such as your location, lifestyle, and debts. However, there are some general recommendations on how much you need to save for retirement.

Of course, it’s more expensive to live in some areas than others. So more savings will be needed if you live in a high-priced area.

Experts recommend that by age 40 you should have three times your annual income in your retirement savings account. By the time you retire, you should ideally have about 10 times your annual income in order to last through your retirement.

The savings amount is so high because Social Security is rarely enough, so you will need to supplement your retirement with savings.

Of course, these amounts are suggested to those living, working, and retiring in the United States. But with an increasingly high cost of living worldwide, many are opting out of the norm and looking for alternative options for the next part of their life. Many retirees are called to move to Panama for this reason.

retire early in panama
Relaxing by the beach

How much money do you need to retire in Panama?

The low cost of living attracts the attention of many foreigners, but mainly retirees due to the ease with which the Panama government has made obtaining a visa. Retirees can gain the Pensionado Visa by proving they have a monthly income or pension of just $1,000. For a couple, you’ll need to show $1250 in lifetime income from a pension or Social Security.

A single person in Panama can live on as little as $1,300 a month, including rent. However, your monthly budget will greatly depend on your lifestyle and the location you choose.

For example, some popular beach towns on the Pacific Coast of Panama have monthly living costs ranging from $2,000 to $4,000, including rent. But move to the beach communities in the Azuero Peninsula and you can cut that budget in half! We recently posted a furnished $650 a month three-bedroom house one block to the beach on our Rentals page.

In Boquete, a popular mountain town in Panama, households also reported varying budgets. However, some couples live on about $1,600 a month, including rent! Move to Volcan and the prices are even more affordable! You have affordable choices in Panama!

In Panama, you can live well on just your Social Security, so a hefty nest egg is not required. You may even be able to retire early if you move to Panama.

Healthcare is much more affordable in Panama too! You can see a doctor for less than $20 (without insurance).

Coronado panama view

No Exchange Rate

US citizens will be pleased to know that Panama uses the US dollar so you don’t have to deal with an exchange rate.

In other countries, like Costa Rica, Mexico, Colombia, or Portugal, the exchange rate can fluctuate greatly, decreasing one’s buying power.

Panama: An Affordable Option

There are plenty of reasons to move to Panama: weather, nature, cost of living, and a new adventure! While the main motivation for retiring in another country may be affordability, you should be sure you love the place you move to–it’s going to be your home after all!

Panama is a popular choice among retirees. There is a large expat community and Panamanians are quite friendly and welcoming. The culture, nature, and community help expats to adapt to their new home and thrive.

Panama is a short flight to the United States, so it’s easy for you to visit friends and family, and they will enjoy visiting you in Panama, too. The Pensionado discount of 25% off airfare makes it even more affordable.

Of course, we recommend doing your research and planning a visit before making the move to Panama. Check out our YouTube Channel for interviews with those who have moved to Panama.

Our all-inclusive 6-day Panama Relocation Tours allow you to get insider information on what it’s like to relocate and live in Panama. By the end of the tour, you’ll know if Panama is right for you… and probably know exactly where you want to move to!

Or, you can check out our Online Panama Relocation Guide. It’s like a home study course on how to move to Panama, and most importantly, live for less.

We also offer Private Tours for specific areas of Panana. If you know you want to live at the beach or the mountains, a Private Tour may be a good fit for you. Private Tours start at just $250 a day for two people.

So, if you’re one of the many people concerned about making your savings last, then consider a change: Panama and all its possibilities await you!

boquete panama
Boquete Panama

Jackie Lange

Jackie Lange is the founder of Panama Relocation Tours and lives in the highlands of Boquete Panama. She has helped thousands of people relocate to Panama.

Reader Interactions


  1. Brandy says

    Hello, Jackie!

    I keep reading and hearing on your YouTube videos that a couple needs $1250 income (ex. Soc. Sec.).

    Could the $1250 be partially from one spouse and partially from the other spouse? For example, I get $700 in Social Security and my spouse receives $550 from his Social Security.

    Thank you for this great article!

    • Jackie Lange says

      Brandy, Yes, you can combine pensions to make the $1250 needed for a couple to qualify for a visa.

      • Brandy says

        That’s great news! Thank you!

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