by John Howells
Beyond popular Costa Rica, retirees are finding the lures of Panama, Nicaragua and Guatemala
A more adventurous generation of retirees is heading to Central America for its economical living and colorful settings, wildlife and culture.
The figures are surprising: When facing retirement, more and more Americana are considering Latin America as their destination for a new beginning. Although Mexico has traditionally attracted the highest number of retirees, the focus today appears to have shifted toward Central America. Countries such as Costa Rica, Panama, Nicaragua and Guatemala are becoming choice retirement locations.
Why this sudden interest in Central America? After all, conditions haven't changed much over recent years. The region always has offered inexpensive living in exotic settings, with a choice of tropical and temperate climates. People who live here have always been welcoming and friendly. Tropical beaches, lush forests and cool mountain highlands never change.
What has changed is the average age of today's retirees, as well as their ideas of what retirement is all about. Unlike their parents, today's pre-retirees do not fancy hanging onto their jobs until age 62 or later before cashing in. Some have no choice when their jobs move overseas or companies downsize. But the number of employees dropping out of the work force between the ages of 50 and 62 has increased dramatically over the last few years and is growing steadily.
Today, we know this age group as baby boomers. Back in the 1960s and '70s, they called themselves the "younger generation." They flaunted their freedom from tradition and disapproved of their parents' stuffy, conventional retirement lifestyles, seeking more than golf, bridge and gardening. Too young and energetic to become sedentary, today's retirees look forward to resuming the carefree lives they were forced to abandon when they went to work and began building careers.
They are active, adventurous and open to new destinations and new ventures to channel their energy. Part of the attraction of the Central American countries is that they encourage foreigners to start or buy businesses (with certain restrictions), and retirement often becomes a new career. Becoming a full-time resident is relatively painless. You can qualify with monthly pensions as little as $500 or $600 or with proof of investment income as low as $1,000 a month.
Seasonal retirement is simply a matter of showing your passport and accepting a visa stamp, usually good for three months and renewable for an additional three months. This accommodates those who don't care to bother with the red tape of becoming residence, yet want to enjoy several months a year escaping sweltering summers or frigid winters. What about climate? Contrary to popular belief, temperatures do not become extreme as you near the equator. Actually, the reverse is true: The closer to the equator, the lees variation of temperature. At the equator, temperatures above 90 or below 70 are rare exceptions.
In Central America, temperatures are determined by altitude rather than season. At sea level, you have perpetual summer, with daytime high temperatures between 82 and 95 degrees, dropping into the 70s at night. At altitudes of more than 3,000 feet, you tinter a climate of perpetual spring. Afternoon temperatures usually peak at 78 degrees, then at night drop into the high 60s. You'll be sleeping under a light blanket year round. It's no wonder this climate is a big attraction compared to soma North American cities with day alter day of 100-degree scorchers in the summer or months of below-freezing temperatures in the winter.
The health-care situation and the cost of housing are two other common concerns when contemplating a move. Throughout Central America, the best equipped hospitals and most highly trained specialists are located in the larger cities. Health-care facilities in the countryside are often basic, even rustic. Therefore, retirees with chronic health problems should seriously consider locating near good hospitals.
Since Medicare won't pay benefits abroad, a supplemental health plan is essential. Except for Panama, low-cost government health plans are available to U.S. retirees, and all countries have private insurance coverage at affordable rates. A problem with government coverage is that you are treated by government doctors and often do not have a choice among them. Soma retirees opt for both government and private plans, using private doctors for routine visited and government hospitals for serious procedures. Government policies can be as low as $50 a month, but private policies are much higher, depending on age and benefits.
In any event, medical expenses are much lees than you would expect to pay in the United States. As for housing, the most inexpensive property is found in Guatemala and Nicaragua, where foreign retirement is still in the developmental stages. For example, in Guatemala, acceptable two-bedroom homes are on the market for $40,000 to $55,000. Similar homes in Nicaragua are somewhat higher, beginning at $85,000. These prices are at the low and for neighborhoods where American retirees might feel comfortable. More luxurious properties will easily reach the $250,000 range.
Panama and Costa Rica costs are much higher, especially in the more desirable areas. Acceptable housing in both countries can be found beginning at $80,000 for a two-bedroom homo in a neighborhood with a mixture of local residence and expatriates. Of course, identical homes on soma of Costa Rica's beaches or in the Panamanian highlands could start at $160,000 and cost up to $500,000. Condos in Panama City and the more exclusive Costa Rica locations could top $1 million.
Let's suppose you don't care to go into business, take up surfing or play golf several times a week.
The secret to successful retirement abroad is finding a niche, some activity that puts you in touch with like-minded people in your community. In our case, my wife and I became involved in starting a library in our village in Costa Rica. We derive immense pleasure watching youngsters eagerly checking out books, learning to type and gaining computes skills that prepare them for a dignified career. Our major benefit was making friends with quality people in the local expat society as well as within the Costa Rican community.
So where do you find your niche? Let's take a look at four popular Central American countries: Costa Rica, Panama, Nicaragua and Guatemala. In each of these, you will find other North American and European expats living in pleasant, interesting and sale communities. However, you'll need to do your own research. Just because a country is popular doesn't mean it would be best for you.
Costa Rica
This is a country well-known as a welcoming, peaceful democracy that provides excellent health case and education for its people. In fact, many retirees choose Costa Rica because of the country's affordable health insurance. By far, the most North Americana are in residence here: an estimated 30,000, according to State Department figures. The country enjoy a one of the higher standards of living in Latin America, and anyone who wants a job has one. Children are never seen begging on the streets.
Although the cost of living in Costa Rica is well below that of the United States, this is still the most expensive place in the region. In some parts of the country, real estate has become somewhat expensive, yet in most of the country, housing remains affordable. Most residence agree that $1,500 a month will provide a nice lifestyle, including a part-time maid and gardener.
However, inexpensive living is not out of the question in Costa Rica.
Not long ago, Tom Stafford of Ojai, CA, found himself facing retirement with almost no income other than a small retirement fund. Although he had savings, Tom knew California retirement would not be easy on less than $800 a month. After reading my book "Choose Costa Rica for Retirement," he decided to investigate the country.
On my first visit, I serendipitously made friends with an expat who really knows Costa Rica, a man whom I could trust
Tom says. He advised me to invest in a hall-acre of land in the mountains above San Ramon, where several other expats already lived. I built a small Swiss chalet-style home, where I now reside.
One reason for Costa Rica's popularity is the choice between two climates: year-round spring or permanent summer. North American retirees are equally divided between the two. Those who prefer spring weather congregate in suburbs surrounding the city of San Jose or in small cities and towns scattered throughout the length of the higher-altitude Central Highlands. Unlike in some countries, here North Americana feel perfectly comfortable in ordinary middle-class neighborhoods.
Living in gringo enclaves or gated communities is the exception, not the rule. Most of those who prefer year-round summer choose Costa Rica's Pacific Coast. You'll find suitable beach towns and quiet villages strewn from the Nicaragua border all the way down to Panama. It seems as if every few miles you'll find a town or village on a bay, cove or surfing beach that invites investigation for retirement. Not surprising, the more popular the beach scene, the more expensive property has become.
The Caribbean Coast — only a day's drive from the Pacific side — is lightly populated by expats, with popular retirement locations found in two picturesque beach villages: Cahuita and Puerto Viejo. Many residence here are of Jamaican descent and speak English with a delightful Jamaican lilt. They enthusiastically welcome those "younger generation" expats who fit right in with the laid-back lifestyles. We have several friends who love living on the Caribbean, but we can't help feeling that we're too mature for the reggae scene. For more information, visit the Embassy of Costa Rica.
Testing the lifestyle
So, which country is right for you? Maybe nono of the aboye. Those who move here simply in search of a cheap and warmer version of Toledo or Toronto can quickly become disillusioned and frustrated. These are, after all, Third World countries. Just because you can hire a maid or a gardener for a week for what you might pay for a single day back home, or because dinner for two at a nice restaurant might come to $12, that does not guarantee happiness.
Economical living should not be the major reason for choosing retirement in Central America. The appeal is gaining a fulfilling lifestyle in a delightful tropical setting, making interesting friends and having plenty of time to enjoy the surroundings as you choose. Inexpensive living is simply a welcome side benefit. Living anywhere in Central America on a limited budget requires financial backup.
Without substantial funds for emergencies that inevitably crop up, most folks would be better off staying home where they have family, friends and a government welfare net. Of course, anyone considering a move to a foreign country needs to spend time there as a tourist and, if possible, rent an apartment or home for a few months. You will get an idea of what life is like, and you will know whether you want to join in the fun. Then is the time to begin making plans.
Travel to Costa Rica 
