Why retire in Panama? Continue....

6 – The currency is the US dollar.

There are two benefits to this. For Americans and others with dollars, there is no need for currency exchange or to worry about exchange rates. The Panamanian Constitution forbids the government from printing paper currency. Thus a second benefit is that, unlike most nations, the Panamanian government cannot just turn on the printing presses when it wants more money. Panamanians have to earn their currency from the world market through hard work and intelligence. There is none of the wild inflation that has plagued so many Latin American nations.

7 – The climate and surroundings are beautiful.

Panama is basically a mountain range bordered by beautiful Panama beaches. However, these are not cold, barren mountains. They are "soft", rounded volcanic Panamanian mountains and the volcanic soil provides an excellent base for lush vegetation. If you prefer a tropical climate, you won't be disappointed on either the Atlantic or Pacific coasts. If, like me, you prefer a more temperate climate with easy access to the Panama beaches (it's almost impossible to be more than an hour's drive from a Panama beach; 30 minutes is more common), move up the mountainside and you'll find it. The flowers, trees, birds and other animal life are varied and many are strikingly beautiful. It's what you would expect in that part of the world and Panamanians are doing a decent job of protecting their environment, far more so than many nearby nations. Eco-tourism is a growing industry in Panama and for good reason. The gentleman pictured to the left is testimony to that. And he's not alone. One of the most active groups defending Panama's environment is its very own Audobon Society. It's rare to find such a organization with a strong local chapter in a nation this small, but this is one more difference between Panama and its neighbors. To get an idea of the amazing variety of birds found in Panama, you can download a copy of Audobon's list of the Birds of Panama or visit its website.

8 – The cost of living in Panama is far less than in the US or Europe.

How much you will save by living in Panama will be determined both by the amount you spend in your home nation and the lifestyle you choose in Panama. There's such a great variety among expatriates that it's impossible to tell you how much you'll save, but if you have any desire to spend less, you will find it far easier in Panama than in North America or Europe. Folks from high-cost urban areas express astonishment at how much cheaper it is to live comfortably in Panama. Those from low-cost rural areas will save less, but they all seem to have one thing in common: they live comfortably, cut their expenses, and save money. It's always been a reason to relocate to Panama and it remains a big one today.

9 – The people of Panama are just plain friendly and a pleasure to know.

The factors above and others unmentioned in this "short" description leave Panamanians among the most pleasant, relaxed people I've ever met. They are more cosmopolitan and sophisticated than many who live in wealthier nations as a result of their long-term exposure to a wide variety of international visitors and Canal users. There are poor people in Panama, but there is none of the grinding, desperate poverty that is so common in much of the world. I've lived and worked in more than 40 nations on five continents and Panama is the only nation where no one has ever begged money from me. I wish I could say the same about the United States. In fact, no one in Panama has ever tugged my shirtsleeve, trying to convince me to buy some cheap carving or the like. I'm sure it must happen from time to time, but I've worked in so many "developing nations", where the poverty makes these kinds of survival practice necessary, not to immediately note their absence.

10 - If you want to retire, Panama wants you.

All of the above makes retiring in Panama an excellent choice for retirement, but here are some very direct incentives. As a pensionado [retiree] in Panama, you receive: » 50% discount at most recreational, movie, and sporting events » 30% discount off public transportation (including buses and ships) » 25% discount off Copa airline flights » 50% discount off hotel stays on weekdays (30% on weekends) » 25% discount at selected restaurants » 15% discount at fast food restaurants » 10% discount off prescription drugs » 20% discount on doctor's visits » 15% discount on dental work » 25% discount on your electric bill (if less than $50) » 25% discount on your telephone and water bills. In addition, you can bring in all your household goods free of taxes and import a new car every two years for private use.

All that is required to qualify as a pensionado is that you must be in good health, AIDS-free, have an up-to-date passport from your country of citizenship and a verifiable monthly income of at least $500 per month for an individual, $600 for a couple. Foreigners who become pensionados can buy and own Panama property and enjoy exactly the same rights and protections as Panamanians, not always the case in many nations and an important point people often forget to consider. As for income taxes, you will be pleased to know that in Panama you pay no taxes on income earned outside of Panama.

Panama is not paradise, no nation is. The government has budget problems and a need to expand the employment base and social services, but these are problems all nations face. Panama is still a relatively young nation and has its growing pains, but it's made a great deal of progress already and it's headed in the right direction. For the rest of us who are not Panamanians, it is a nation where we can live comfortably for much less money and far less stress than we have come to expect in our own societies. Best of all, we are "good" immigrants. We save money living in Panama, but we also bring with us the money that creates jobs and opens possibilities for Panamanians they would not have otherwise. They know that and so we are genuinely welcome