Your retirement icome is enough to qualify you for a pensionado visa. Your first step is to gather all the paperwork needed to apply for the visa that you will need from your home country. Then come to Panama and find a lawyer that specializes in immigration. They will help you get the rest of your papers in order.
You are right, the rent really varies from place to place and it depends on what kind of place you want. I know some who rent for $80. a month and some spend $800. I am not sure what you mean by a large town. Panama City is a large city so maybe you are looking for some place less hectic.
To find websites with more information try doing a search with "living in Panama". Many will be commercial websites with something to sell you but you will find bits and pieces of information. You can also search Yahoo! groups for forums on Panama. Two that I know of are Americans in Panama and Viviendo en Panama. The latter is a group I started a year or so ago to share information about moving and living here. They discuss a lot of things - from where to find root beer to best financial investments in Panama.

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Hi! Melody is correct. We just received our pensionado visa to retire to Panama. Check out my website (http://www.whypanama.com). We had a great lawyer that specialized in pensionado visa. She had us do a lot of things before we came down (including documents required). Then it took us less than a month to get the visa.

Mary

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The retirement visa requirements appear at
http://www.expatexchange.net/expat/index.cfm?frmid=270&forumid=0&dbname=ee&tpcid=270007&shared=N

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