Retiring to Panama raises a question most guides skip: which of your North American benefits follow you? For Canadians, Old Age Security can be paid abroad only after 20 years of residence in Canada since age 18, according to Canada.ca. For Americans, Original Medicare generally does not cover care outside the US. Panama ranks second in International Living’s 2026 Annual Global Retirement Index, behind only Greece, which is a good reason to look and no reason to sell up. It is not one of the five countries I know best, and I have not lived there, so this guide sets out the rules honestly, and the questions to put to licensed specialists, before you decide. I cover pensions, residency types, what the US and Canadian governments say about safety, and what the October 2026 earthquake means for your checks. If you are planning to retire abroad, talk to me first, before you commit money, sign a lease or sell up at home.
Is Retiring to Panama Realistic for Americans and Canadians?
For many people it is, and the distance is short compared with Australia or Europe. Panama is on UTC-5 all year and does not use daylight saving, which matches US Eastern Standard Time. That makes it the same time as New York in winter and one hour behind in summer. Panama uses the US dollar, which simplifies budgeting if you have dollar income. Daily life runs in Spanish.
None of that replaces testing it. If you are also weighing up ownership, my guide to buying property in Panama covers title, possession and concession land.
What Happens to Your Pension and Health Cover When You Retire Overseas?
This is the question to answer before anything else, because it decides your income and your costs. These are the points I could confirm from official sources, and they are a starting point, not advice.
| Your situation | What the official sources say |
| US Social Security | The Social Security Administration publishes a tool for checking payments outside the US, so check your own situation and destination |
| US Medicare | Original Medicare generally does not cover care outside the US, according to Medicare.gov |
| Canadian Old Age Security | To receive it while living outside Canada, you must have lived in Canada for at least 20 years since age 18, according to Canada.ca |
| Canadian Guaranteed Income Supplement | Canada.ca lists living in Canada as a condition, so check with Service Canada before you assume it continues |
Check your own position with the Social Security Administration’s payments abroad tool or with Service Canada, and ask a licensed cross-border adviser about your tax position before you move.
What Residency Types Does Panama Offer Retirees?
I am not an immigration adviser, and the rules change, so this is a map of the types, not a how-to. Panama has a retiree category for people with a qualifying lifetime pension. Whether your pension qualifies, and at what level, is a question for a registered specialist.
| Residency type | Who it suits | What to check |
| Retiree (pensionado) | People with a qualifying lifetime pension | Income conditions change over time, and work rights are usually limited |
| Investor | People who invest in property or hold a deposit | Buying a home does not automatically qualify you |
| Friendly Nations | People from listed countries with work, property or deposit ties | Reported as changed in 2025, and I could not confirm who is eligible now |
| Work or family | People with a local employer or a family link | Tied to the employer or sponsor |
Do not sell your home on the strength of an assumed visa. Confirm the route first.
What Do the US and Canadian Governments Say About Safety in Panama?
Read the advice yourself before you decide. The Government of Canada rates Panama at its lowest level, normal security precautions, with regional advisories, in a page updated on 16 October 2026. It advises a high degree of caution in Colón Province, parts of the San Miguelito district, Veracruz City and several Panama City townships, and it advises avoiding all travel to areas south of Metetí in Darién Province and to the Mosquito Gulf. The US State Department’s Panama page has the American advisory, which I could not open.
Both governments describe risks that vary by area. Visit the exact area you are considering, speak to people who live there year round, and read the advice again just before you move.
What Did the October 2026 Earthquake Change for Retirees in Panama?
On 9 October 2026, the Associated Press reported a magnitude 7.7 earthquake centred in Herrera province, followed by strong aftershocks. Buildings collapsed near the epicentre, and officials reported no damage in Panama City. Tocumen International Airport suspended operations temporarily, and the Panama Canal Authority said canal operations were continuing normally. Canada’s advisory now tells travellers to avoid non-essential travel to three townships in Veraguas Province.
For a retiree the practical questions are about buildings and cover. Ask how old a building is and whether it has had a structural inspection, ask what your insurance covers for earthquake damage, and ask where the nearest hospital is.
Infographic alt text: Infographic: five checks before retiring to Panama, including Social Security, Medicare and Old Age Security
What Should You Check Before Retiring to Panama?
- Check how your pension is paid abroad with the Social Security Administration or Service Canada.
- Confirm your residency route with a registered specialist.
- Rent in the exact area for a few months, in more than one season, before you sell or buy.
- Check your health cover, including pre-existing conditions, earthquake cover and the flight home.
- Read the current US and Canadian travel advice for the area you are considering.
- Check your tax position with a licensed cross-border adviser.
How Can I Help With the Whole Move?
The five countries I know best are Thailand, Bali, Malaysia, Dubai and Cyprus. If your country is not listed, such as Panama, ask me, because my network of agents covers more and I can introduce you to licensed local specialists.
My job is to make sure you do not make an expensive mistake in the wrong order. Talk To Me First is my independent advisory service for people in Australia, New Zealand, the UK, the USA and Canada who are thinking of moving, retiring or investing overseas. It exists to help you make an informed decision before you commit money, sign a lease or sell up at home. I do not mind where you move. I care whether it is right for you.
I have moved countries five times, so I have been in your shoes. I have visited 92 countries and spent more than 30 years in international property, and I work with a network of more than 500 affiliate agents in 25 countries. I act as your strategist and coordinator. Regulated advice on tax, pensions, visas and legal matters comes from licensed specialists whom I introduce you to. I do not give that advice myself, and I will say so.
You choose the pace, from doing it yourself to having it done for you:
- The Talk To Me First Guide, a low-cost starting point if you want to plan the move yourself.
- A personal consultation, one hour with me on your situation.
- Your Overseas Move Plan, a written plan for one country if you prefer to do the move yourself.
- The Full Mentoring Package, with me beside you through the move, if you want it done for you.
- Property help to buy or rent in your new country, or to sell or rent out the home you leave, through Rick Flay International Real Estate. I will always say so openly when a property is involved.
- Introductions to licensed specialists in migration, legal, tax, foreign exchange, insurance and healthcare.
Tell me your budget, whether you want to rent or buy, your timing and which places you are considering. Talk to me first, and we will work out the right order of steps before you commit to anything. Get in touch or message me on WhatsApp on +61 404 497 335.
Frequently Asked Questions
Can I keep my US Social Security if I retire to Panama?
The Social Security Administration publishes a tool for checking payments outside the US. Use it for your own situation and speak to the SSA before you move.
Does Medicare cover me in Panama?
Original Medicare generally does not cover care outside the US, according to Medicare.gov. Check what private health insurance covers before you go.
Can Canadians receive Old Age Security in Panama?
Canada.ca says you must have lived in Canada for at least 20 years since age 18 to receive Old Age Security while living outside Canada. Check your own record with Service Canada.
Is Panama good for retirees from the US and Canada?
It ranks second in International Living’s 2026 retirement index and uses the US dollar. Daily life runs in Spanish, and both governments describe risks that vary by area. Rent for a few months, in more than one season, before you decide.
Did the October 2026 earthquake affect Panama City?
The Associated Press reported that officials saw no damage in Panama City, with the worst damage near the epicentre in central Panama. Check the latest information for the specific area you are considering.
Can you help with visas and residency?
Yes. Through Talk To Me First I introduce you to licensed specialists who handle the visa and tax detail, and I help you plan the move. I do not give visa or tax advice myself.
About the author. Rick Flay has more than 30 years of experience in real estate, with over 1,000 properties sold and rented across international markets. Rick Flay International Real Estate helps clients buy, sell and relocate through an international affiliate network of 500+ agents in 20+ countries.
Property, tax, health and immigration rules change, and the right decision depends on your circumstances. Nothing in this article is financial, legal, tax or immigration advice. Take independent professional advice before buying or moving.
© The data shown on this website and any other written communication has been offered by third parties and is assumed to be correct. The sale of the properties is managed by Rick Flay Real Estate, Australia. Our company does not guarantee their veracity or accept any responsibility for any errors. The offer may be subject to errors, price changes, omissions and/or withdrawal from the market without prior notice. Prior to purchase clients are advised to check with their legal advisors on all details pertaining to the sale/purchase. The information does not form any part of any contract for sale. We always recommend that you take independent, legal, financial and taxation advice. Additionally some photos, plans, specifications are indicative/illustrative only and may have been created by AI.
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