News

A new report from Miami focuses on the boom in U.S. senior citizens deciding to retire in Latin America, a key driver for Panama property sales. So many Americans are heading to the region, “some are calling Latin America the new Sun Belt,” a recent article in the Miami Herald concludes.

“Lured by affordable housing, inexpensive healthcare and vibrant ex-pat communities, more Americans are heading south of the border to spend their golden years,” according to the article headlined, “Retiring abroad is growing in popularity.”

Recent data hints at the extent of the trend. The number of retired workers — not including spouses or disabled workers — who received their monthly benefits outside the United States has grown from 242,128 to 359,767, according to Social Security data.

In South America alone, the number of U.S. retirees climbed from 8,677 to 15,698 over the 10-year period, according to the Herald.

But the Social Security data only tells part of the story. The agency captures the numbers of retirees who have set up residency abroad, not the thousands who have bought second homes and spend the majority of their time abroad, but still maintain a U.S. mailing address. Those numbers are huge and they are clearly growing at a similar rate to the Social Security numbers.

The Herald article tells the story of Rolando Gutierrez, who grew up in Miami, but decided to retire in a small town north of Panama City.

“I love it,” Gutierrez, 56, told the paper. “Miami is a wonderful place to work in and to hang out. I love all the cultures, but the traffic is horrible, the politics are horrible and it’s expensive.”

The article clearly identified the reasons American retirees are finding Latin America attractive. Homes are reasonably priced compared to the U.S.; healthcare is available and affordable; and the quality of life can be light years better in a place like Panama City. But it also can make sense as an investment, with real estate in Latin America offering more growth potential than many markets in the U.S.

The author of the article quotes Dan Prescher, an Omaha native who now lives in Ecuador. “The attraction of Latin America is huge,” he said. “You get more bang for your buck and you’re close enough to get back to the family in half a day.”

One thing is clear: Far from slowing, the trend of retirees buying abroad is going to continue to grow at a dramatic rate, thanks to the Baby Boomers entering their later years. And Punta Pacifica is perfectly poised to benefit from that trend.

Duncan McGowan is president of Punta Pacifica Realty, a Panama real estate agency focused on Punta Pacifica, the exclusive neighborhood of 18 towers perched on the edge of the Pacific Ocean.