**Retiring Abroad: How One American Found a Simpler, More Affordable Life in Panama**

Alan Wells, 73, counts himself among an increasing number of Americans who’ve looked abroad for a simpler, more affordable retirement. Retired for 14 years, Wells took up permanent residence in Boquete, Panama, in 2015. A year later, he purchased what he describes as a modest 900-square-foot house in a neighborhood about 30 miles from the Costa Rican border for around $100,000. After moving in, he immediately expanded the home’s size to around 2,000 square feet.

“It’s probably worth a couple of hundred thousand dollars today,” Wells said.

As many retirees debate whether or not to move abroad, Wells recently shared his experience with Fortune, offering insights into retirement overseas.

**Why Make the Move to Panama?**

Growing up in Cincinnati, Ohio, Wells had never visited a foreign country before moving to Panama. Yet, he called his experience “magical.” His daughters’ weddings in Panama introduced him to the local community, and after meeting a widow at one of the receptions, Wells began to consider a move to Central America as a single retiree.

“They [my daughters] decided they preferred the U.S. to Panama; I decided I prefer Panama to the U.S.—so we switched,” Wells joked. “I tell them, ‘Thank you for your welfare contributions to my Social Security fund so that I can live down there.’”

Throughout his career, Wells spent most of his time in Memphis, Tennessee, working at FedEx. After moving to Panama, he would travel back to Louisville, Kentucky, for just a week each year. Life changes—such as the COVID-19 pandemic and the arrival of grandchildren—have since turned him into a snowbird. Today, Wells commutes between Louisville and Boquete twice a year, spending six to nine months in Panama annually.

**Can You Afford More in Panama Than in the U.S.?**

The answer depends on where in the U.S. you’re comparing, according to Wells. Panama isn’t drastically different, spending-wise, compared to Louisville, where housing costs about 20% less than the U.S. average. The typical American household spends $61,334 a year and roughly $1,784 a month on housing. In larger cities like Miami or Los Angeles, where the cost of living is up to 49% higher than the national average, the difference is significant.

Wells shared that he has friends who moved to Panama from Los Angeles because they couldn’t afford to live there anymore—and are now living “very nicely.”

“I can afford a great deal more in Panama than I can in the U.S., but I do maintain residences in both countries,” Wells explained. “$500 is my cost of living, plus food, in Panama.”

Here’s a look at his monthly expenses in Panama:

– Home insurance: $300 per year
– Car insurance: $250 per year
– Electric bill: $40 per month
– Trash and water: $11 per month
– Internet (including cable): $70 per month

One important factor is the climate: Wells doesn’t pay for heating or air conditioning because “the climate is perfect.” By comparison, his U.S. expenses are three to four times higher, including about $1,000 for homeowners insurance, $1,500 in property taxes, and roughly $1,000 for car insurance annually.

**Obtaining Residency in Panama**

The process to become a permanent resident took Wells about seven to eight months, and included paperwork, background checks, income verification, and flights to Panama City for government appointments. Experts note that recent shifts in visa rules, tax policies, and local costs have made the process more complicated for retirees.

To qualify for residency, Wells had to demonstrate a minimum monthly income of $1,000, which he receives from Social Security payments, investment returns, and required minimum IRA distributions.

**Daily Life: Then and Now**

During his first few years in Panama, Wells enjoyed exploring the country’s mountains. Today, he spends his time going to the gym and managing his computer systems as an IT specialist, linking operations between Kentucky and Panama. The culture in Panama reminds him of his Southern lifestyle back home.

“Panama’s the size of Tennessee, so in the first few years you travel a lot—there’s a lot to see,” he said. “It’s a very small, very narrow country, but you go from plains to mountains to coastline; it’s awesome.” In fact, he can reach the Pacific Ocean in about an hour and the Caribbean in about three.

**Language Barriers and Medical Care**

Wells said medical care in Panama is affordable and sufficient for minor needs, but admits that “good and cheap is not really a thing.” If something serious happened, he says, his kids would fly him back to the States.

On the language barrier, Wells is disappointed he hasn’t learned as much Spanish as he’d hoped. Thankfully, he says, most educated Panamanians learn English as a mandatory second language, and most adults he meets speak at least some English.

**Expert Advice for Retiring or Moving Overseas**

A successful retirement abroad requires careful planning, thorough research, and flexibility to adapt to evolving financial, legal, and lifestyle challenges. Wells’ advice: “Don’t jump in. You really want to take a couple of sample trips before you make any decisions.”

“People come down here, take a tour, buy a house, and then realize they’re 4,200 feet up a mountain and freezing every night,” he warned. “We stayed in a little casita just to see how things were and to look around at the real estate to find something we could actually live in.”

Planning ahead, visiting multiple times, and seeking out a community that fits your needs are key steps for anyone considering retiring abroad.
https://fortune.com/2025/11/15/retirement-living-costs-panama-living-costs-housing-americans-affordablility-abroad-expats/