55th of 192 countries in the Sovereo Index, and 5th of 23 in North America.
Pillar scores
North America average. Scores run from 0 to 100. How the Index is built.
Who Panama suits
Panama scores 69.0 out of 100 and ranks 55th of 192 countries in the Sovereo Index. Its strongest pillars are Health and Longevity (84.6) and Income (83.6), both far above the North America average. Capital and Enterprise (77.4) is also strong. Its weakest pillar is Lifestyle and Belonging (50.1), and Legacy and Sovereignty (69.4) trails the regional average.
For a US retiree, Panama removes currency risk: it uses the US dollar. The Pensionado visa grants permanent residence on a $1,000 monthly pension, or $750 with a property worth over $100,000. Panama City is not cheap, and new residents should price private health insurance before they move.
Retirement visa: does the average Social Security check qualify?
Permanent residence, retiree or pensioner (Pensionado). A lifetime pension of at least $1,000 a month, or $750 with Panama property worth over $100,000 (Executive Decree 320 of 2008). Pension income only.
The average US Social Security retired-worker benefit ($2,085.98, July 2026) covers it 2.09 times. The balboa is pegged to the dollar, so the bar does not move with exchange rates.
Source: Servicio Nacional de Migracion, Jubilado o Pensionado requirements. Confirm the current minimum with the consulate before you act.
Cost of living
One person in Panama City needs roughly $1,200 to $1,750 a month for rent, food and transport; a couple about $1,550 to $2,200, before health coverage (October 2026 estimate). Full answer with sources.
Nearby alternatives
| Country | Score | Rank | Region |
|---|---|---|---|
| Costa Rica | 70.8 | 47th | North America |
| Panama | 69.0 | 55th | North America |
| Colombia | 62.2 | 85th | South America |
| Ecuador | 60.0 | 100th | South America |
| Mexico | 59.2 | 107th | North America |
| Belize | 57.1 | 121st | North America |
Latest from the SITREP
- October 11, 2026: Panama's earthquake closes every school on Monday
Deciding whether Panama fits your retirement?
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See the Lab and join the waitlist →Answers about Panama
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Go deeper on Panama
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Get the Panama Dossier →Questions about Panama
How does Panama score in the Sovereo Index?
Panama scores 69.0 out of 100, 55th of 192 countries. Its highest pillar is Health & Longevity and its lowest is Lifestyle & Belonging.
Can the average Social Security check qualify for Panama's retirement visa?
Permanent residence, retiree or pensioner (Pensionado): A lifetime pension of at least $1,000 a month, or $750 with Panama property worth over $100,000 (Executive Decree 320 of 2008). Pension income only. The average US Social Security retired-worker benefit ($2,085.98, July 2026) covers it 2.09 times. The balboa is pegged to the dollar, so the bar does not move with exchange rates.
How much does it cost to live in Panama?
One person in Panama City needs roughly $1,200 to $1,750 a month for rent, food and transport; a couple about $1,550 to $2,200, before health coverage (October 2026 estimate).
Cite this page
Educational research, not legal, tax, immigration or financial advice. Index scores are built from public datasets; see the methodology for sources and dates.