You Can Still Collect Social Security When You Move to Panama!

While we work with people of all ages, many hoping to relocate to Panama plan to do so for retirement. They’re hoping to start a new chapter, embrace the slower pace of life that the country’s culture offers, and, most importantly, make their hard-earned savings last longer.

The lower cost of living that Panama, and many Latin American countries, offers US retirees is an undeniable factor in their motivation to move abroad.

When you combine the lower cost of living with Panama’s famous Pensionado Discounts, you can reduce your cost of living when you move to Panama. In Panama, these are just a few discounts you can enjoy … 20% off at restaurants, 25% off your electric bill, 50% off at movie theaters, and 25% off travel to anywhere in the world.

But, if you’re about to hit retirement age or have already done so, you will also be collecting social security or a pension, reaping the benefits of all those years of hard work.

Therefore, it’s logical that when considering moving abroad, you’re also thinking about whether or not you will still be able to receive your monthly Social Security retirement payments.

That’s why we know that one of the most critical questions on your mind is:

Will I be able to receive social security retirement income while living in Panama?

Yes! The easy answer is that you will be able to receive those very important monthly Social Security retirement payments while living in Panama.

Indeed, Panama has made the process relatively easy for foreigners retiring in Panama. In addition to incredible benefits and a streamlined path to residency, once you have a Panamanian bank account, you can get your social security retirement via direct deposit. All you have to do is fill out a form with Social Security, and you’re set!

If you prefer, you can continue to have your Social Security retirement payments go into a US bank, then wire the money to Panama. You can also use a debit card to access cash from an ATM in Panama, but the fees are $6.50 for $250 in cash. Another option is writing a check from a US bank to deposit into your Panama account.

Whether living in Panama or another country, you can receive your Social Security retirement payments.

However, with any rule, there are exceptions, so always double-check on the official government sites to ensure your specific country of interest.

If you receive other forms of Social Security payments, you may not be able to receive them when you move abroad. Go Here for the Payment Abroad Screening Test to determine if you can still receive Social Security when you move to Panama.

While it’s simple for U.S. citizens, the qualifications for eligibility to receive social security payments abroad if you aren’t a U.S. citizen (just simply a resident) will vary.

FREE! Check out this 40-page free brochure for more information about receiving Social Security when you move abroad.

Could Your Social Security Be Suspended If You Live Overseas?

If you receive U.S. Social Security payments and live outside the United States, you must complete and submit the Proof of Life form (Form SSA-7162) every two years to continue receiving your benefits. This requirement applies to anyone who has their Social Security payments sent to a foreign bank account or provides an overseas address. The form is used to verify that you are still alive and eligible to receive benefits. If you representative of someone who received Social Security, you must supply Proof of Life form SSA 7161 every two years.

When you live in Panama, the Proof of Life Form can be sent to the Social Security Office in Costa Rica:

U.S. Embassy San Jose (Attn: FBU)
Unidad de beneficios federales
Avenida 0 calle 120
Pavas, San José
Costa Rica

or send to

Social Security Administration
P.O. Box 7161
Wilkes Barre, PA 18767-7161

If you fail to return it on time, the Social Security Administration (SSA) can suspend your payments until they receive the completed form.

The SSA typically mails the Proof of Life form between May and June of the required year. It is crucial to ensure that SSA has your current address on file so you receive the form. If you do not return it by the deadline, you will receive a follow-up notice as a final reminder. Failure to respond will result in your benefits being suspended in February of the following year. Many retirees abroad have experienced unexpected payment disruptions because they missed or overlooked this requirement.

To avoid suspension, make sure you complete, sign, and return the form as soon as you receive it. If you do not receive the form in the expected timeframe, you can request a replacement from the U.S. Embassy or Consulate in your country or download a copy from the SSA’s website. It’s also a good idea to follow up with the SSA to confirm they received your completed form. Keeping track of this requirement is essential for retirees living overseas to ensure continued access to their Social Security benefits.

Can Canadians receive their Pensions if they move to Panama?

If you’re Canadian, you’re likely wondering the same thing: can you receive your Canadian pension while living in Canada?

Again, Panama makes retiring easy, and Canadians can easily receive their pensions while living there. Watch this live-stream interview with a Canadian CPA to determine if there could be changes in your pension or taxes when you move to Panama.

Do I make enough Social Security retirement income to Qualify for Panama Residency?

When considering retiring abroad, you’ll want to become a resident of that country. So, when considering relocating to Panama, ensure you are eligible for residency.

Your pension or Social Security payment must be a LIFETIME payment to be eligible for residency in Panama. This means you will get the payment every month for the rest of your life.

See this article to learn what’s required to be eligible to get residency in Panama.

One of the allures of retiring in Panama is that the Panamanian government has made it relatively easy for retirees to gain residency there. However, you do need to meet a minimum monthly income (along with other requirements) to qualify.

Luckily, the amount of money needed to qualify is quite accessible for most. You need to have a minimum monthly income of $1,000 USD. This number goes up by $250 USD for each dependent you declare. Considering the requirements of many other countries, Panama’s minimum monthly income requirement is relatively low.

For more information on residency in Panama, check out our article on how to get the Pensionado Visa in Panama, a visa specifically for retirees.

Receiving Social Security in Panama is easy!

As you can see, Panama makes it easy for U.S. retirees to receive their social security or pensions while living in Panama. So, worry no more! You can certainly move to Panama and continue to receive your monthly payments.

When you’re ready to explore Panama, consider an all-inclusive 6-day, 7-night Panama Relocation Tour. It’s an easy way to see much of the country, see rentals, meet experts and expats, and learn how to move hassle-free to Panama, too.

We also offer the Online Complete Panama Relocation Guide with all the information you need to relocate to Panama.