KipH
4/15/2016 14:34 EST
Hello everyone, glad I found you.
I know these type questions come up often I'm sure, but please bare with me.
I'm 45 now (wife 43) looking to move permanently when I'm 50.
Besides meager savings, our main source of income would be my military retirement which is about $2,100 gross.
Based on your experience, how safe and comfortable is that? Would we need part-time work? I'm not against that.
We have been contemplating "where" for a few years and have 90% settled on Panama. Because of that we haven't done a ton a research on any one country. We have come to Panama (90%) based on article, accounts from this forum and a few other places.
Thanks.
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jonoyakker
4/15/2016 15:15 EST
KipH, asking the cost of living in Panama in 5 years is like asking the cost of anywhere else in the world in 5 years. And the honest answer is, who knows? Panamas COL has been growing steeply, partly because the economy has been so strong. Another factor at the moment is that the dollar is strong. If you wanted to project that increase, your monthly pension would be stretched. You don't say whether you are planning to purchase a house or whether you are planning on buying a car. Both would have an effect on your budget of course.
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Johannamu
4/15/2016 15:39 EST
Well Sir, u have to factor in if u want to buy, rent. Location where u would like to reside, Medical as I am not sure if there your Military med will be accepted here. Bringing a car, or purchasing one here. What expense u have (credit card) etc.
I am here on just a very very small budget. I rent a modest casita on the beach, furnished, clean in Las Lajas . I sold my home in the States, Paid off all debt . and left my furniture and personal effect and MX 5 in the states no storage fees. and I am good! granted no transportation sucks at times. There is taxi service, I haven't done the bus as yet. I get a ride every two weeks from neighbors to David to shop. Its all good, I go out to dinner and lunch about 5 times a mo. I do not speak Spanish trying to learn, Japanese yes. Not needed here however. Take all into consideration have a game plan. Budget where u must. I gave up Manicures, Pedicures, and doing my hair, as the ocean breeze takes care of that. I am lic Cosmetologist so I can do the others my self. Good luck !
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tombseekers
4/15/2016 16:54 EST
Since I've been here, the road went from a crummy one lane to one of the best roads in the hemisphere. We are getting a real mall. With the population increase, changes are happening quickly. Prices are increasing as well but still much lower than the States. To guess what it will be like in 5 years - well my crystal ball doesn't go that far.
But it's not only the cost of living that brings people here to stay. I've noticed that people who love Panama gets a perk of cheaper living. You have to love it for this to work.
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KipH
4/16/2016 00:21 EST
I get that no one can predict what prices will be like in 5 years, and I'm sure it's a pretty crazy market. Was just looking for round figures.
Thanks
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Inpanama
4/16/2016 09:04 EST
Your budget may be doable in 5 years, but only you can decide what, if anything, you are willing to do without or adjust to in order to meet your financial requirements. Just a few examples: housing can be inexpensive here if you're willing to live in a Panamanian-style house (no hot water in the kitchen, suicide showers, no air conditioning, usually no clothes dryer, very few cabinets in the kitchen) or relatively expensive for American style homes. Prices today range from $300/mo in rent to over $3,000 depending on location and amenities.
Monthly expenses can vary greatly depending on where you settle - here in Boquete we rarely use air conditioning and our electric bill runs about $50/mo., but at the beach where it is much hotter, I would probably have to run the A/C constantly and have a $500 bill.
Gas is a little more expensive here than in the U.S., but many people do a lot more walking and use public transportation. We have many friends who don't own a car.
What do you enjoy doing? Hobbies can be free or very expensive - golf isn't cheap anywhere, for example, but hiking is free on many trails. Beaches can be free, as long as you don't want to use the amenities of a nearby resort (they usually charge a daily fee for use). Depending on the area, there may be clubs or groups of expats who enjoy similar interests and may band together to reduce any costs.
Since you have 5 years to plan and look around, I suggest finding as many blogs as possible and read, read, read! As we prepared for our move, we learned that local expats are the best source of information, and many of them will be happy to answer your questions.
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ranadelnorte
4/16/2016 10:34 EST
All good answers. Basically, you have to decide how you want to live during retirement. On your income today, you could live a modest lifestyle in Panama, with many tradeoffs to be made in amenities and comfort. In 5 years, who knows? Best to come see for yourselves.
Don't forget that you'll need a nest egg of at least $5,000 in today's dollars for immigration and basic start-up costs. You have time to start saving for those now.
Also, with a pensionado visa you won't be allowed to be an employee here. If you want to supplement your income, over the next 5 years perhaps you could develop an internet-based business that you could run from Panama.
Good luck!
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Christian86
4/17/2016 09:05 EST
Your retirement will depend largely on how disciplined you are day in and out. I was 41 when I retire here over ten years ago together with my family. We own our house and get by with very little. My wife took on part time work locally at a school and this allows us to have a little extra income and decent health coverage. Housing will be very affordable by the time you retire as there is a constant stream of new real estate coming on the market. This will keep a lid on prices independent of inflation in the next five years. I no longer travel because I enjoy the climate here. If family wants to see us, they need to travel. Besides there is skype, which is good enough for me. I can eat rice and beans every day just like the locals, but do afford the luxury of buying fresh bread, imported cheeses and cutlery when I feel like it. If you do want or need to travel a lot, Panama might not be the right place for you. It is relatively expensive. Copa, the national airline, is not for nothing the most profitable airline in the world.
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