Leaping into retirement overseas might sound like a dream come true. But with the entire world available, choosing a spot to call home can be challenging.
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One unexpected option that draws in retirees is Panama. Here’s why the tropical nation is gaining so much traction among retirees.
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Why Retirees Are Flocking to Panama
Retirement abroad comes with a certain level of adventure. But in addition to the new chapter, most retirees have some financial considerations to keep in mind. Typically, retirees moving abroad want to strike a balance between affordability and access to worthwhile amenities.
Panama seems to offer everything retirees want and more. Some of the key highlights of retiring to Panama include:
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Reasonable cost of living: It’s possible to live comfortably in Panama for between $1,700 to $3,600.
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Relatively easy residency requirements: Generally, the Friendly Nations Visa application process is straightforward with limited requirements. Retirees with a pension of at least $1,000 can qualify for a pensioner visa in just a few months. If you don’t have a pension, you might be able to get started on residence status by depositing $5,000 into a Panamanian bank account.
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Beautiful location: The country has gorgeous natural beauty to explore. You’ll find mountains, beaches and almost everything in between.
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Weather: Panama boasts generally sunny skies. And the country is out of the typical hurricane zone, which means fewer worries about a life-changing storm.
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Large expat community: Between 15,000 and 20,000 expats from the U.S. call Panama home.
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What To Consider Before Retiring Abroad
Before you retire abroad, it’s important to weigh out all of the details.
The conversation usually starts with your retirement nest egg. Before you choose a country to retire to, it’s important to get clear on your budget. If you have an idea of what you can realistically spend each month during your golden years, it might be easier to narrow down your options. For example, if you can comfortably spend $5,000 per month, that likely opens up your options.
As you consider your options, take a close look at the residency requirements of a country. Some offer easy pathways to residency. Others don’t. Understanding your pathways upfront can help you make an informed decision.
Of course, you’ll also want to look closely at the medical system. As you age, you are more likely to need medical care. And you want to be comfortable with the options in your new country.
Beyond sorting through the practices of life in another country, it’s helpful to explore what lifestyle choices you have available. For example, if you love pickleball, you might want to confirm your new locale has plenty of courts. Or if you love getting outdoors, you might want to scope out the nearby hiking trails.
How To Decide If Panama Is the Right Place for You
Panama is undeniably a wonderful place to call home for many. But that doesn’t necessarily make it the right place for you. You’ll need to dig into the details of what Panama has to offer in comparison to other countries that strike your fancy.
If possible, consider doing a test drive of a particular spot before moving for good. After all, living in an area gives you the best idea of whether or not it’s a good fit for your needs.
For example, you might rent an apartment in Panama for several months. If you still enjoy it, you might decide to make the move permanent. Or you might decide to try out another place. Or you might decide to return to your original home.
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This article originally appeared on GOBankingRates.com: Retirees Are Flocking to Panama — Should You?
