2025 is nearly over and if you're set to retire in the next few months, you may be thinking extra hard about what's next. Or rather, you may be thinking about where is next. According to International Living, a global retirement and relocation resource website, soon-to-be retirees may want to consider heading south.
In late November, International Living released its 2025 Annual Global Retirement Index, an analysis meant to help readers identify the best places to retire abroad using metrics like quality of life, real estate value, and the local cost of living. It named Panama as its No. 1 country for retirement in 2025.
“Our goal is to empower retirees to make informed decisions about their best options abroad right now. We compare and contrast 20 hand-picked countries across seven categories, each highlighting a topic folks need to consider, like cost of living, visas and benefits, climate, health care, and more,” Jennifer Stevens, the executive editor of International Living, said in a statement obtained by Travel + Leisure. “This year’s Index showcases safe, welcoming, good-value places where retirees can live better for less — while enjoying an adventure and finding like-minded community in surrounds that suit them."
Beyond the categories mentioned by Stevens, the team also considers the "ease of integration into local society," which can be critical to those in their golden years looking to make new friends. And beyond hard numbers, the list is also informed by insights from its on-the-ground correspondents and the lived experiences of expats in each destination.
"Panama remains a standout retirement destination due to its modern infrastructure, diverse lifestyle options, and unbeatable retiree benefits," International Living said. "Topping the 2025 Global Retirement Index, Panama offers something for everyone — whether retirees seek cosmopolitan city life, tranquil mountain escapes, or a laid-back beach lifestyle."
According to International Living, the nation's top perk for retirees is its Pensioner Visa, which you can get so long as you can show a "verifiable pension of at least $1,000 a month ($1,250 for couples)" — the visa also gives you permanent residency. It also comes with fun perks like 50 percent off movie tickets as well as useful discounts like 25 percent off power bills and 20 percent off prescription medications.
“The program was designed to help retired Panamanians live active, socially engaged lives,” said Jessica Ramesch, International Living's overseas editor based in Panama. “That same spirit of inclusion extends to foreign retirees.”
Beyond the discounts, the team also noted that Panama's robust health care system and its geographically diverse terrain are big draws as well. "Mountain towns like Boquete offer cooler temperatures and stunning views, while coastal areas such as Coronado provide relaxed beach living with modern conveniences," International Living said in its press release. "Its strategic location outside the hurricane belt ensures year-round peace of mind for those seeking a safe, warm climate." (And I can speak from experience when I say Panama, without a doubt, has the best coffee in the entire world. It's so good I may just have to retire there too.)
“Panama’s location, safety, and affordability make it an exceptional choice for retirees looking to maximize their lifestyle without breaking the bank,” Ramesch said. “Whether you want a luxury ocean-view condo or a quiet, lush retreat in the mountains, Panama delivers.”