Why did we retire to Panama at the young ages of 51 and 57?

The short answer: Because we can afford to live here on $2,000 a month.

The long answer: Panama is just a few hours from the U.S., uses the U.S. dollar, has a great retirement program, excellent health care, and our health insurance costs us just $200 a month… and that's with an annual deductible of just $250.

But there's more to it than that, of course…

Dear International Living Reader,

Just a few short years ago, says Terry Coles, "We were living in Corpus Christi, Texas. I was working for a medical equipment company and my husband, Clyde, was a firefighter. He loved his job, but he had always wanted to retire at age 57."

Clyde was eligible for a good pension, Terry says, but his ex-wife is entitled to a third of that. The remaining amount wouldn't go far, especially since Clyde would lose his health insurance benefit when he retired.

Even worse, since they would not yet be eligible for Medicare, Clyde and Terry would need to fork over $1,200 every month for an adequate health insurance policy.

So Clyde started doing some research. He asked Terry what she thought about the idea of retiring overseas.

"Did I want to work another 15 years or did I want to retire now and enjoy life?" she asked herself.

It didn't take long to make a decision. "Where are we going and when?" she asked Clyde.

After much research, the couple chose Panama.

"It had everything we were looking for," Terry says. "A great pensionado (retirement) program, excellent healthcare at a fraction of the cost back home, and a warm tropical climate. It's close to the U.S., uses the U.S. dollar, and so much more."

On a visit to Panama, the hook was set. Fast forward to today. Clyde and Terry live in a 2,000-sq.-ft. home on an acre of land in the town of Chame, not far from the popular, upscale beach community of Coronado.

The house has four bedrooms, three bathrooms, and a large wraparound porch. In the rear of the property there's a large outdoor entertainment area and a casita with a bathroom.

Terry and Clyde purchased the property for $90,000.

"The 30-year old house needed remodeling," she says. She and Clyde painted, replaced sinks, toilets, ceiling fans and ceiling tiles….

"Clyde built 18 feet of teak cabinets and put in granite countertops because I've never had granite before. In the U.S. we could never afford it, but here we bought 24 feet of granite for $350."

Today, with the home remodeling project now finished, Terry and Clyde spend their time doing "whatever we want to do," Terry says.

"We work around the house… we exercise, take walks with the dogs, and spend a lot of time socializing with friends. It's easy to make friends here… because we're all retired!"

Best of all, their fabulous new retirement lifestyle comes with a low price tag.

Terry and Clyde's total monthly living expenses amount to no more than $2,000. That includes utilities, food, prescriptions, property taxes, internet, gas and maintenance for the car, and more….

And by moving from the States to Panama, Terry and Clyde were able to vastly reduce their health insurance costs—from $1,200 a month to just $200 a month. And that's for a comprehensive policy with a low deductible of just $250.

"We haven't had to use the insurance yet," Terry laughs. "It's hard to do that when a doctor's office visit is just $15… and that's to see an English-speaking doctor at a very modern clinic."

Evenings out are spent socializing, maybe listening to some live music… Clyde plays the guitar and sings. "We like to go out dancing, and we're only 60 minutes from the nightlife of Panama City," Terry says.

"We really feel like we have it all. We're very happy with our new lives and our new friends and experiences in Panama, and we've never looked back."

Live Life Like a Celebrity, but Without Rock Star Prices

Al Fine is another happy retiree in Panama, where he's a "jubilado."

While the word looks like it should translate to "jubilant," in Spanish it actually refers to a "retired person."

But Al is both. Retired and jubilant. And it's all because he moved to "this great country" when he was in his late 70s.

Now in his mid-80s, Al says that in Panama he found that he was respected and wanted—because of his age and not in spite of it!

"Panamanians are hardworking, they are very family oriented," he says. And they respect and care for jubilados.

Al and his wife, Carmen, live in a gorgeous Panama City condo with a fantastic ocean view. They have a housekeeper who keeps it clean and does the laundry.

Thanks to Panama's Pensionado Program, Al says, he spends just $2.50 to watch a first-run movie at a 14-screen theater in English. "I pay $5.50 for a blood test to check my cholesterol at the Johns Hopkins affiliated Hospital. And I get nice discounts for my round-trip air tickets from Panama to Miami."

Plus, he says, he and Carmen eat out regularly at some of Panama's most popular local restaurants. "A couple of bucks for breakfast, less than $5 for a simple dinner. When the check comes, Al just asks for his "descuento de jubilado"—his retiree discount.

"I'm living like a celebrity… like I have all the money and prestige in the world," he says, "And I'm doing it all on a pensioner's budget."

So what is it about Panama that makes it one of the world's top retirement destinations? Besides the perfect weather, beautiful beaches, and low cost of living? A lot of it has to do with those extraordinary retirement incentives I mentioned earlier….

Panama's Pensionado Program is the most generous and appealing program of special benefits you'll find anywhere in the world today.

Best of all, you needn't be of "official" retirement age to qualify.

No matter your age, you can qualify for Panama's Pensionado Program—widely recognized as the best retirement program in the world. Just provide documentation of a guaranteed pension income of $1,000 a month from a government agency (e.g. social security, disability, armed forces) or corporation. If you buy a home in Panama valued at $100,000 or more, that amount is reduced to just $750 per month.

You're also entitled to a one-time exemption from duties on the importation of your household goods (up to $10,000) and tax exemptions on the importation or local purchase of a car.

But don't just take it from me…

The AARP says that Panama is a "smart choice for retirees who want it all."

Business Week dubbed it "the New Florida."

Forbes reports, "It truly can be paradise."

And the Washington Post says:

"With all of its benefits and active expatriate community, Panama is among the most affordable and appealing options for retirees."

In Panama you can have it all: a cosmopolitan capital city with one of the world's largest financial districts… hundreds of miles of spectacular beaches… highland retreats with green valleys where the weather is spring-like, even in January and August… and did you know that there are never any hurricanes?

So please, don't put off your dreams of a better, less-stressful (and lower cost) life any longer…

The very best way to find out if Panama is right for you?

Announcing: International Living's 2015 Fast-Track Panama Package

Listen in and discover everything you need to know about Panama to help you decide if it's your ideal retirement or relocation destination…

Come away with all the knowledge and contacts necessary to make your move happen with confidence.

I'm Jackie Flynn, International Living publisher. For years International Living has been sharing information about all that Panama has to offer. As quality of life (worsened by crumbling economies and heavy-handed governments) deteriorates elsewhere in the world, Panama looks better and better.

Nowhere else can you enjoy such a comfortable life… with a year-round mild tropical climate, excellent medical care, fresh, healthy food straight from the farmer's truck… and a retirement incentive program that's truly welcoming of expats…

More than any other destination that International Living covers, Panama is—hands down—the most popular. And there are so many reasons why…

Listen to the 2015 Fast-Track Panama Package here