This Tropical Country With Gorgeous Beaches Is The Best Place To Retire Abroad In 2025

Gone are the days when one had to wait until retirement to explore overseas living options. With people working remotely, retiring early, or considering life abroad, relocation options are on the minds of many. Despite it seeming like half of America is moving to Portugal these days, Panama is proving to be a top choice, boasting one of the lowest costs of living in the world, not to mention Caribbean and Atlantic coastlines drenched with gorgeous beaches. While Costa Rica has been the Central American choice for American immigrants for decades, Panama now tops the list as the best place to retire in 2025 according to International Living's Global Retirement Index. Panama has a solid infrastructure, quality medical care, abundant shopping, and commercial services. A night out on the town is a fraction of the cost of American cities. For example, a glass of wine typically costs between $2 and $6, while dinner at a casual restaurant will cost between $11 and $25.

While not the cheapest country in Latin America, the cost of living is less than in the United States. Coupled with the Pensionado Residence Program, the savings and benefits are even greater. The pensionado is a generous benefits initiative created to attract retirees to Panama, starting with a required monthly income of $1,000. This can come from social security, a pension, or other verifiable income. The program offers significant discounts on medical services, travel, entertainment, hotels, and even personal loans. With the average American Social Security award of just under $2,000 per month, an individual or couple can transition from a modest lifestyle in the States to a very comfortable one in Panama that can include maid service,  salon visits, theater, dining out, and personal travel. The program gives you permanent resident status. You may apply for citizenship after five years.

If the benefits of retiring to Panama have piqued your interest, the next agenda may be exactly where in Panama to set up house. Panama is a country of great variety, from miles of pristine coastline to lush mountain escapes — most people can find a community that suits their budget and lifestyle. For the committed urbanite, Panama City has everything a cosmopolitan life requires. A metropolis of over 2 million people and a Miami-like vibe, it's generally more expensive than other regions. One of Panama's true gems, Casco Viejo, is a historic walled city-within-a-city that is a colorful hidden jewel with unmatched food, but a bit pricey for most retirees. Real estate runs from $200,000 to $1 million. Another option for those seeking the pinnacle of sophisticated urban living is the luxurious waterfront enclave of Punta Pacifica, along with the neighborhoods of San Francisco and Costa del Este.  Apartment rentals in these swanky parts range from $1,200 to $2,500.

There are plenty of more affordable and equally desirable areas to settle in outside of Panama City. Consider the very popular beach community of Playa Coronado. While not entirely populated by retirees, it is a top choice for immigrants who may otherwise have chosen Florida but prefer this more affordable option. Coronado offers an active lifestyle and first-world conveniences, such as a 24-hour supermarket, shopping complex, diverse dining options, medical center, and a close-knit community. Housing options range from gated condo complexes to expansive mansions. A lively portion of the beach features vendors, snack bars, and live music, while quieter areas are stretches of white-sandy beach. A one-bedroom apartment here can be as low as $800. If you are looking to purchase a home or condo, prices can start as low as $100,000 to over $2 million. 

Not everyone retiring in Panama wants to replicate the urban life back home. Many seek refuge from the hectic pace of their working years and envision a slower rhythm amidst verdant scenery. Located in the Chiriquí province near the Costa Rican border, the mountain town of Boquete is a magnet for immigrants seeking serenity without sacrificing most amenities. With spring-like year-round temperatures averaging in the 70s, Boquete offers an array of nature-oriented activities, plus tennis and golf. There are convenient medical clinics, cafes, and coffee houses for socializing, a museum, cultural activities, and annual festivals.

 Another community attracting more attention is the Caribbean town of Bocas del Toro. Situated in the northeast corner of the country, hugging the border with Costa Rica, Bocas del Toro is all about off-the-beaten-path, laid-back vibes and an affordable price point. Apartment rentals start at around $600 per month. Overwater bungalows and brightly painted buildings dot the landscape, while bars with live music and cultural celebrations help immigrants connect to local culture. Due to its location and developing status, some amenities are limited, which doesn't seem to deter those who prefer an under-the-radar lifestyle.