While the Van Halen hit song “Panama” was written about either a fast car or a stripper David Lee Roth met in Arizona, it’s definitely not about the Central American country best known for its ocean-connecting canal. But International Living certainly has plenty to say about the positive attributes Panama has for Americans looking for an affordable place to retire abroad.
Indeed, Panama is back on top of International Living’s list of “The World’s Best Places to Retire in 2022,” released on Jan. 1, after finishing second in the 2020 and 2021 rankings and first back in 2019.
International Living’s 2022 Annual Global Retirement Index is the most comprehensive and in-depth survey of its kind, informed by hundreds of opinions and real-life experiences compiled by American expatriates actually living in the best retirement destinations across the globe.
The result is an ever-growing selection of outstanding destinations where retirees can live a healthier and happier life, spend a lot less money, and get a whole lot more.
Here’s a closer look at what made Panama this year’s top choice, along with the other four other countries to make the Top Five.
1. Panama
“When it comes to overall benefits and value, Panama is very tough to beat,” says International Living Correspondent Jessica Ramesch. “It’s what you get when myriad pros come together to create the perfect tropical storm. All any doubter has to do is make a list.”
Ramesch’s list starts with Panama’s geographical position and climate. “Just a three-hour flight from Miami, it’s perfectly positioned between North and South America, on a narrow isthmus between the Pacific and the Caribbean. It’s warm and tropical, but completely outside the treacherous hurricane belt,” Ramesch writes. “Though it’s a high-humidity, high-rain destination…especially in the mountains and on its Caribbean coast…it’s also one of the region’s sunniest expat destinations. My days here are balmy and pleasant, characterized by ocean breezes and light, bright mornings.”
She goes on to mention Panama being one of only three carbon-negative countries in the world, excellent hospitals, strong infrastructure and it being the region’s busiest flight hub, making it one of the easiest retirement destinations you can travel to from the U.S. or Canada.
“People who’ve never been here tend to assume it’s very Third World, but I have reliable power, water that I can drink straight from the tap, high-speed internet, and excellent cell phone service. For 35 cents I can hop on Central America’s only metro line and zip downtown in 10 minutes,” Ramesch says.
Aside from the capital Panama City, Ramesch cites Boquete and Coronado as expat retiree hot spots.
Panama received a top average score of 86.1 in the index, led by a perfect 100 score for how easy it is to attain permanent resident status. It earned an 88 for healthcare and an 82 for cost of living.
“Here’s the thing about living in a powerhouse nation: Panama was perfectly poised to weather the financial and health-related storm, with excellent healthcare and a strong economy that was bound to bounce back,” Ramesch writes. “So, these days it’s ‘back to business’ here. The country is busy welcoming tourists, new residents, and new investment, too. And if you’re on your way down, rest assured that Panama is also ready to welcome you.”
2. Costa Rica
The “Switzerland of Central America” surrendered the top spot in the index it held in 2021 to Panama, but didn’t fall far, landing at No. 2 with an average score of 85.1.
Its “special brand of enchantment” stems from its mild tropical climate, low cost of living, friendly locals, affordable medical care, vast real estate options and natural beauty.
“Costa Rica remains a beacon of stability, democracy, and that sought-after laid-back lifestyle,” writes IL Correspondent Kathleen Evans.
“A couple can live comfortably, but not necessarily extravagantly, here for around $2,000 to $2500 a month. This includes renting a two-bedroom home/condo with North American amenities, air conditioning, plus groceries, entertainment, transportation, and healthcare. If your monthly budget is over $3,000, you will find a relaxed lifestyle with most creature comforts you require.”
Evans notes Costa Rica is in a slow economic recovery in the wake of the pandemic, but “initiatives like the new digital nomad visa and an updated law to attract retirees with perks such as a lower threshold for investors (lowered to $150,000 from $200,000), and the ability to import a shipping container of home goods tax-free, as well as two vehicles—sans the steep import costs,” should help.
3. Mexico
Mexico remains in the No. 3 spot in the index’s 2022 rankings with a score of 83.8, thanks to its close proximity to the U.S., “low-cost, top-notch healthcare,” great weather, high-speed internet and more.
More than one million Americans and about a half-million Canadians live in Mexico either full time or part of the year (there are a lot of snowbirds in the country in winter, especially from the northern U.S. and Canada).
“On average, a retired couple could live well in Mexico for right around $2,000 a month. That covers housing, transportation, healthcare, utilities, food…everything,” writes IL Correspondent Jason Holland. “Some people get by on much less because they live very much like locals, others spend a whole lot more—if you want luxury and high-end, Mexico certainly has it.”
4. Portugal
The top-ranked country in the 2020 index, Portugal fell to fifth in 2021 before earning a score of 83.3 to move up to fourth in 2022.
“This tiny country in the southwest corner of Europe has something for everyone. Vibrant cities full of Old World charm, miles of golden sandy beaches, green, rolling hills, some of the best healthcare in the world, low cost of living, and safety,” writes IL Correspondent Terry Coles. “A couple can live comfortably, but not lavishly, in Portugal on $2,500 per month. If you want to live in Lisbon, Porto, Cascais, or the Algarve, you should bump that number up to $3,000 or more.”
5. Ecuador
The most obscure country in the top five would no doubt be Ecuador, the second-smallest country in South America, which earned a score of 83.1 but had the best score (92) among the top five for cost of living.
IL Correspondent Donna Stiteler says expats can easily live in Ecuador off $1,500 to $1,825 a month, and notes that tourism has grown by 30% over the past five years with people drawn to its “perfect combination of climate, culture and affordability.”
Best of the Rest
6. Colombia: 81.7
7. France: 78.3
8. Malta: 75.7
9. Spain: 75.3
10. Uruguay: 74.6
11. Thailand: 72.9
12: Iceland: 72.7
13. Peru: 72.5
14. Cambodia: 72.3
15. Malaysia: 72.0
16: Bali: 69.0
17. Sri Lanka: 68.9
18: Vietnam: 68.3
19: Italy: 67.3
20: Belize: 67.1
SEE ALSO:
• 4 Very Different ‘No. 1 Places to Retire’
• ‘Best Places to Retire’ Rankings Dominated by Two States
• The ‘World’s Best Place to Retire in 2021’ is…
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
