One of the first questions prospective retirees ask is: “How much money do I actually need?” It’s a fair question—and one that deserves an honest, detailed answer based on real numbers, not marketing hype.
The truth is, retirement in Boquete and other areas of Panama can cost as little as $1,200 per month or as much as $5,000+, depending entirely on your lifestyle, location, and priorities. Let’s break down the real costs so you can plan accordingly.
The Minimum: What the Pensionado Visa Requires
To qualify for Panama’s famous Pensionado Visa, you need a lifetime pension of at least $1,000 per month ($750 if you purchase property worth $100,000 or more). But here’s the reality: that $1,000 is the minimum requirement, not necessarily a comfortable living budget.
Most retirees find that $1,500 to $3,000 per month provides a comfortable lifestyle, depending on where you live and how you spend.
Breaking Down the Real Costs (2025 Numbers)
Housing: Your Biggest Variable
Rent varies dramatically by location:
- Boquete: $800–$1,500/month for a 2-bedroom home or apartment
- Panama City: $900–$2,000/month for a modern 1–2 bedroom apartment
- Coronado/Beach Areas: $900–$1,500/month for ocean-view apartments
- Smaller Towns (David, Penonomé, Chitré): $400–$800/month
If you’re buying, prices have softened since the pandemic. You can find basic homes in and around Boquete starting around $150,000–$165,000, beachfront condos from $240,000, and even charming rural properties for under $140,000.
Groceries: Shop Local, Save Big
Your grocery bill depends heavily on whether you buy local or imported products:
- Local shopping: $200–$300/month per person
- Mix of local and imported: $300–$400/month per person
- Mostly imported/Western brands: $400–$600/month per person
Fresh tropical fruit, local vegetables, and Panamanian beef are incredibly affordable. A papaya costs $1, a dozen eggs $2.50, and fresh fish is plentiful and cheap. Imported blueberries, specialty cheeses, and American cereals? Those will cost you.
Pro tip: Shop at local markets and Rey supermarkets, and choose Panamanian brands whenever possible.
Dining Out: From Street Food to Fine Dining
- Local sodas (small restaurants): $4–$8 per meal
- Mid-range restaurant: $25–$40 for a three-course dinner
- Upscale dining: $50–$70 per person with drinks
We eat out 3–4 times a month and spend anywhere from $40 to $70 for a meal with dessert.
Utilities: Depends on Your Climate
- Electricity: $50–$200/month (much lower in the mountains where you don’t need A/C)
- Water/Trash: $10–$30/month
- High-speed Internet: $30–$40/month
- Cell Phone: $15–$45/month
- Gas (cooking): $0–$10/month
If you live in Boquete’s eternal spring climate, you won’t need heating or air conditioning. If you’re on the coast or in Panama City and run A/C 24/7, expect higher bills.
Healthcare: World-Class and Affordable
- Private health insurance (local): $100–$175/month
- International insurance: $150–$500/month
- Doctor visits: $15–$50
- Prescription medications: Often 50–70% cheaper than the U.S.
One expat friend gets 16 blood tests done every few months for $170 (compared to $1,257 in the U.S.), with results emailed the next day. Dental work, eye exams, and even minor surgeries cost a fraction of what you’d pay back home.
Transportation: Cheap and Easy
- Public buses: $0.25–$0.75
- Metro (Panama City): Under $1
- Taxis: $2–$5 for short trips
- Uber: Widely available and affordable
- Gas: Around $3.40/gallon
- Car insurance: $50–$100/month
Many expats in Boquete, Coronado, or Panama City live car-free and walk or use taxis. If you do own a car, costs are manageable.
Household Help: A Luxury You Can Afford
- Maid service: $15–$30 per visit (3x/week = $180–$360/month)
- Gardener: Under $20/day
Having someone clean your home, do laundry, and even help with meal prep is common and affordable—a luxury most retirees couldn’t dream of back home.
Sample Monthly Budgets for 2025
Frugal Single Person: $1,200–$1,700
- Rent: $600–$800
- Groceries: $200–$300
- Utilities: $100–$150
- Healthcare: $100–$150
- Transportation: $50–$100
- Entertainment: $150–$200
Comfortable Single Person: $2,000–$2,500
- Rent: $1,000–$1,300
- Groceries: $300–$400
- Utilities: $150–$200
- Healthcare: $150–$200
- Transportation: $100–$150
- Dining/Entertainment: $300–$400
Comfortable Couple: $2,500–$3,500
- Rent: $1,200–$1,600
- Groceries: $400–$500
- Utilities: $150–$200
- Healthcare: $200–$400
- Transportation: $150–$250
- Household help: $300
- Dining/Entertainment: $400–$600
Family with Children: $3,000–$5,000+ (Add $2,500–$20,000/year for international school tuition)
The Pensionado Discount: Your Secret Weapon
Here’s where Panama really shines. As a Pensionado visa holder, you get:
- Save 50% on tickets for movies, concerts and sporting events.
- Enjoy 25% off airline fares.
- Get 30% off bus, boat, and train tickets.
- Receive a 15% discount on hospital bills.
- Stay Monday–Thursday and pay 50% less on hotel rates.
- Dine out with 25% off at restaurants.
- Reduce your electricity, water and phone bills by 25%.
- Pay 10% less for prescription medications.
These discounts add up to hundreds of dollars in savings every month—and they apply for life.
So, How Much Do You Really Need?
The honest answer: Most expats live comfortably on $2,000–$3,000 per month as a couple, or $1,500–$2,000 as a single person.
If you’re willing to live more modestly—renting outside expat hubs, cooking at home, using public transportation—you can absolutely do it on $1,200–$1,500/month.
If you want a more luxurious lifestyle—oceanfront condo, frequent dining out, international health insurance, regular travel—budget $3,500–$5,000/month.
The beauty of Panama is that you have options. You can live like a local and stretch every dollar, or you can enjoy a premium lifestyle for half of what it would cost in the U.S., Canada, or Europe.
The Bottom Line
Panama isn’t the cheapest country in the world, but it offers exceptional value. You’re not just saving money—you’re gaining access to modern infrastructure, world-class healthcare, political stability, and a vibrant expat community.
The real question isn’t “Can I afford to retire in Boquete, Panama?” It’s “Can I afford not to?”
For us, after weighing all the factors—climate, community, quality of life, and that intangible sense of home—Boquete emerged as the clear choice, and we haven’t looked back since.
Ready to see if Boquete is right for you? Start by calculating your own budget using these real numbers, then come visit and experience the lifestyle firsthand. The numbers tell one story—but living it tells another.
