the seasoned traveler with george bauer

Program 212:

Retiring to Panama


Tropical and beautiful, Panama offers an abundance of wonder...

I have been fortunate to visit some remarkable venues and savor some magnificent sights. But few have had such an impact on me as standing at the very edge of the Panama Canal, watching gigantic tankers and cruise lines sluice their way through the water-path, reducing the time it takes to sail from the Pacific to the Atlantic. As thrilling as that event, I was excited to learn that Panama is a traveler's land of plenty and, beyond that, it has emerged as perhaps the new leading retirement destination for Americans.

Modern Maturity magazine has written that Panama is rated the Number-One place in the Americas for retirement. Conde Nast Traveler writes that Panama is among the best places in North, Central, and South America in which to buy a second home. And as I traveled this isthmus about the size of South Carolina and met some of its three million residents, I saw many of the new communities being built to lure Americans south of the border.


The canal is fascinating and busy...

Once one of the many colonies of Spain in the New World, Panama later became part of Colombia. It seceded from Bogota's control in 1903 and signed a treaty with the United States. Included in the language of that treaty was permission to construct a canal across the isthmus, from ocean to ocean, or at least to finish construction which had been started by the French. The idea of a water-passage across Panama goes back to King Charles V of Spain in 1524. He thought a canal would reduce the time it took for ships bearing gold from Ecuador and Peru to return to Spain. Those vessels had to go all the way south around the Cape of Good Hope. In 1529, a plan for such a waterway was committed to paper. But the lack of technical know-how made it impossible to get what was drawn on paper to become reality. As a backup, pathways were built through the dense jungles but it often took just as long to cart goods across the 60+ miles from Pacific to Atlantic. And, of course, the woods were often rife with bandits and pirates, intent on pillaging the riches from New Spain. More than 300 years after the King's first vision, the Panama Railway was completed in 1855, built in part to carry the precious metal from the California gold rush to the Eastern United States. In 1880, the French arrived, buoyed by their success in constructing the Suez Canal in Egypt. Ferdinand de Lesseps planned to build the Panama Canal without locks, as he had done with the Suez Canal in Egypt but the size and force of the Chagres River worked against him. That, and outbreaks of disease, torpedoed the French effort in 1893. Some 22,000 people may have died during the ill-fated effort. An independent Panama made a deal with the U.S. to complete the canal. President Theodore Roosevelt bought out the French equipment and the rights to the project. Work began in 1904, after the Americans invested in a disease-elimination plan. The arduous job was finished in 1913 and the Canal opened for business August 15, 1914.

The 51-mile water-passage is an engineering masterpiece. Fourteen thousand vessels pass through its locks and waterways each year. Some of the newest supertankers are too big to fit through the locks, so Panama (which won control of the Canal in 1999) is considering a set of new, wider locks.

There's much more to Panama than the Canal and the former Canal Zone, so let me tell you about it. Most people begin their journey in Panama City, the capital, and this is no small shantytown on the banks of the Pacific. The sheer size of the city will startle first-time visitors, with its explosion of new skyscrapers. Twin 90-story structures are to be the tallest buildings in Latin America. Some of the high-rises are retirement buildings, for Americans and others. Cars, trucks, buses, and motorcycles are everywhere. Streets are crowded and the air is noxious. Don't drive if you can avoid it because taxis are abundant and inexpensive, with most trips costing 1 or 2 U.S. Dollars. In fact, Panama uses the Dollar as its currency, although its coins are called Balboas. They honor Vasco Nunez Balboa, who first named the world's largest ocean in 1513. The explorer landed on the Atlantic side of this little land-mass and came into contact with some indigenous people. Chief Panciaquiaco told the explorer about another body of water across the isthmus. Some Indian guides took Balboa and members of his own group on a two-week-trudge through the thickness that is now called the Darian Jungle. Finally, he came to the water's edge and called the vast blue sea Pacifico.


Panama City is modern and exotic...

Keep in mind that Panama City is just 9 degrees from the Equator so it can be brutally hot on many days of the year.

The major intown shopping district, Caledonia, boasts plenty of choice and low prices, although some of the stuff is junk, pure and simple. The original part of town, Panama Viejo, is east of what is now the city center. It's a historical gem, although much of the town no longer exists. That's because pirates overran the area, chasing after the gold and gems brought through here. The infamous Henry Morgan led one of the most savage band of brigands. Panama's first cathedral stood here, built from 1619-1626 and was once the tallest and most-commanding structure in town. The Old Town was eventually laid waste and a newer district, called San Felipe, sprang up in 1673. Today the district is called Casco Antiguo and juts smartly out into the Bay of Panama, west of downtown. The pirates never got to this neighborhood because it was protected by fortress-like walls. The Federal government is housed here, as are some beautiful homes and apartments. Panama's second cathedral is here too, at one edge of Independence Plaza. But the real treasure in Casco Antiguo is the Golden Altar inside Saint Joseph Church. It is made of gold and it has a story. Saxon pirate Henry Morgan was in the area so some church members removed the Golden Altar and gold columns and actually submerged them in the sea so the bad guys wouldn't get them. Morgan came to St. Joseph Church but took nothing and departed. The altar was restored to its rightful place and remains there to this day.

Modern-day Panama City boasts all the conveniences of a world-class community, including half a dozen casinos, where you can gamble away all those dollars you bring to Panama. Beyond the capital, there are small towns along both the Pacific and Atlantic coasts. And off shore, there are quiet islands that are being developed for wealthy retirees. The city of Colon is on the Atlantic side and it has little to offer, except the Atlantic Terminus, where cargo from overseas is sold at the city's massive Free Trade Zone.

The Pacific coast has some of the finest beaches in Central America and for mature folks considering a beachfront retirement, there are several active adult communities on the coast.


The Gamboa Rainforest Resort is educational and fun...

To truly appreciate Panama, let me suggest two areas to visit. The Gamboa Rainforest is located between the two termini of the Canal. It is a thick, lush oasis just 30 minutes from Panama City. The best way to experience it are to take a boat ride onto the Canal and into the Chagres River to view the astounding array of wildlife, including hundreds of varieties of birds. Another way to see the forest up close is to take a tram ride through it to a tower on a high hill. From the top there's a remarkable view over the rainforest and the Panama Canal.

Perhaps the most idyllic part of Panama is the Chiriqui mountains, near the town of Boquete. The sleepy little farming town is growing in size and stature because retirement communities are going in here too. Boquete's population is 18,000 but some 20 Americans move to the mountains every month. One night I went to a local restaurant, which was packed with ex-pat Americans, who gathered for a meal, conversation, and to raise money for a local charity which helps poor Indian children in the mountains.


The markets will amaze you...

Aside from the beauty of the mountains themselves, some of the richest coffee in the world is grown and roasted in Boquete and if you visit the local produce marketplace, you'll find some fine fresh fruits and vegetables at remarkably low prices. I bought a bag of local limes for one dollar. There were 42 limes in the bag. Try to get a deal like that at your local supermarket.

Panama calls itself "retirement friendly" and is going out of its way to encourage Americans to move there. Newcomers can get discounts on everything from home closing costs to airline tickets to prescription drugs to movie tickets. Foreigners who buy property in Panama get a special retiree Visa from the government and enjoy the same rights and protections as Panamanians. And perhaps the biggest bonus: foreigners pay no property taxes on their homes for 20 years. New residents can bring in one car and up to $10,000 in belongings, tax free. You can drive to Panama by way of the Pan American Highway which runs through the isthmus-nation.

There are other benefits I'd call your attention to: because the United States ran the Canal Zone for 90 years, there are many English-speaking doctors and medical workers in Panama and they accept many U.S. insurance policies. Many retirement communities will have medical wellness facilities within the subdivision, and the prestigious Johns Hopkins University of Baltimore has opened major medical facilities in Panama City.

And here's my favorite benefit for relocating there: by law, all banks in Panama must have special express lines for retirees. You've earned the right NOT to stand in line.

If you visit Panama, with a view toward relocation or just for vacation, understand there are two seasons there, wet and dry. It's sunny and dry from mid-December to mid-April. For the rest of the year, it rains for at least part of most days. It can be hot and sticky in the lowlands but cooler in the mountains.