Video: Why Panama is the Best Place to Retire in 2025

The results are in, and Panama is officially International Living’s top retirement destination of 2025!

But what makes Panama so special that it beat out all comers to top our 2025 Global Retirement Index?

Our Panama Editor, Jess Ramesch, explores why this country is the ultimate retirement haven in the video below.

Why Panama Keeps on Winning

By Jess Ramesch

“We’ll have the sexy clams, and the sexy shrimp, and…” Stifling our giggles, my friends and I resist the urge to poke fun at the names as we make our way down the menu, ordering seven delectable dishes to share.

I’m thrilled to be back in one of my favorite cities on the planet, and with great friends that make me feel like family. The chef may be a little overfond of the word “sexy,” but Fonda Lo Que Hay in Panama City is one of the best restaurants in Latin America, and the food is world-class.

After dinner we walk to a luxurious speakeasy for live jazz. There’s no cover charge—though I’d pay admission just to see the ornate first-floor lobby with its massive chandelier.

The place looks like it belongs in Paris, or perhaps Buenos Aires, but… this is Panama.

Panama City boats a wide selection of chic eateries and bars.|©iStock/E_Rojas

And though I’m enjoying myself—thoroughly—this is my job.

I’m constantly on the road, in the air, and on the water, exploring the country so I can write about it. I live in the Pacific beach town of Coronado, but my recent trips have taken me to the fishing village of Pedasí, the surf capital of Venao, the remote shores of Cambutal, the cool mountain havens of Boquete and Volcán, the islands of Bocas del Toro, and many others, besides.

Traveling the country, I feel safe and free. The people always make me feel welcome, and the landscapes are undeniably beautiful. Everywhere I go, I see the signs of progress. And I see expats reaping the benefits, living happier, healthier lives than they previously thought possible.

This country has a track record… a positive one. It’s been consistent in welcoming foreigners and maintaining the excellent infrastructure that makes them want to come here in the first place.

That’s just part of the reason Panama has just won International Living’s 2025 Annual Global Retirement Index. In fact, Panama has won more times than any other country… eleven in total, counting 2025.

Why would you want to put Panama on your list? It’s pretty simple. Note down all your wants and needs, and you’ll likely find that Panama checks more boxes than any other warm-weather destination. When it comes to overall value, Panama has proven very hard to beat.

Once you become a retiree resident, it gets even better. You’ll get government-mandated discounts on healthcare, your power bill, transportation, entertainment… even going out to eat.

That’s thanks to Panama’s famed pensionado program. If you have a verifiable pension of at least $1,000 a month, you’re welcome to apply. Acceptance rates are high, and once you’re in, you can stay here as long as you like, enjoying most of the same rights and benefits accorded to local citizens. No other desirable country makes it easier to become a privileged resident.

Consider what that could mean for you. It’s the wealthiest country in Latin America by GDP per capita. It’s completely outside the hurricane belt. The connectivity is excellent, meaning you can find reliable high-speed internet all over the country. The major roads, the potable tap water, and the first-rate supermarkets help make life here particularly comfortable and affordable. The banks are stable, you can find great-value (and properly titled) real estate, and there are excellent hospitals and English-speaking doctors here. Not to mention dentists—my dentist in Coronado is the best one I’ve ever had.

Panama’s more than just modern… it's always moving forward. That’s really what has kept me here.

A massive project has just shortened drive times on the Pan-American Highway that runs the length of the country. This directly impacts me as a beach resident who drives into Panama City often for flights, fun, and more.

Panama is home to Central America’s only subway system—it’s clean, cheap, and air-conditioned, and it made my life so much easier when I was living in Panama City. The metro continues to expand with Line 3, which is currently under construction and stretching west out of the city. (Part of the project includes a new tunnel that will run under the Panama Canal—how cool is that?)

Panama’s Tocumen International Airport was already the best and busiest in Central America, but the new Terminal 2 is beautiful and convenient… as is the rail link that connects it to Line 2 of the metro.

Panama’s Tocumen International Airport is a travel hub, making this country easy to get to and from. |©iStock/Boarding1Now

But here, progress isn’t just about building. Panama has the best environmental performance in Latin America, having protected more of its rainforest and marine territory than any other nation. Panama is one of only three carbon-negative countries in the world. This is a land of plenty, with abundant sunshine and rainfall… incredible fruit, vegetables, chicken, pork… and you won’t believe the quality and variety of coffee, rum, craft beer and the many other “potent potables” we enjoy here.

It won’t cost you too much, either. Here you can live a life that feels luxurious on $2,500 a month. As Panama is home to some of the world’s most active welcoming expat communities, anyone can plainly see I’m not alone in thinking so. And by the way, there are plenty of people living good lives on $2,000 or less, including rent, utilities, transportation, and groceries.

Small but mighty, Panama just keeps on winning. Sure, like any country, it has faced some tough times… but that track record I mentioned? It shows that time and time again, Panama will rise to the top.

If the past few years may have left you wondering whether there are any countries left on this planet that are safe, stable, and welcoming… any countries that can reasonably be relied on to stay that way… I’m here to tell you that yes, there are. I speak from many years’ experience. And though Panama isn’t the only one, it is… with good reason… number one.

If you decide to give it a shot, don’t forget to stop by a cozy little restaurant called Fonda Lo Que Hay… and order the sexy clams.