We Left NZ to Retire — Here's How We Did It and Why

After retiring and dropping about $100k in income to live on the NZ pension, we watched our savings reduce every single month. I figured that by the time we were 80, we would be out of coin. So we decided to actually do what we had talked about for years — leave, to go somewhere warm with a cheaper cost of living.

The plus's were easy to list: leave behind the cold weather, the high cost of living. and to quote NZ First Deputy Leader Shane Jones who has frequently criticized what he describes as "separatist ideology in NZ".  Finally the exorbitant land taxes and council spending  I quote New Zealand's current Prime Minister Christopher Luxon   " Councils have a responsibility " not to do dumb stuff, they need to rein in the fantasies ". So add the plus of leaving behind separatist BS and massive land tax hits it was a no-brainer.                                                                BUT we also left behind family and friends and honestly that wasnt so great. However we use facebook messenger and Whatsapp to keep in touch.                                                                                                                                                                                                                              Enough negativity.!!   After doing a deep dive research of  many countries, including Thailand, Vietnam, Belize, Nicaragua, Costa Rica and a few others ( see the deep dive blog due to be added on the 16th July 2026 )  , we found Panama to offer the best overall combination of affordability, economic stability, and quality of life. The key attractions are reasonably priced property, low property taxes, zero taxation on foreign-earned income, and a strong, diversified economy.Panama's economy is one of the most robust in Latin America, with a Gross Domestic Product (GDP) of approximately USD $90 billion and a GDP per capita of around USD $20,000, placing it among the region's wealthier nations. Many people assume the Panama Canal is the country's main source of income. While the Canal is a major contributor and a vital part of the economy, Panama's prosperity is driven by a broad range of industries, including international banking, logistics, shipping, commerce, tourism, construction, and agriculture. This economic diversity has helped Panama maintain steady growth and attract investment from around the world.Foreign-earned income is generally exempt from Panamanian tax, and foreign pensions are not taxed. For those earning income locally, income tax obligations typically begin only after annual earnings exceed approximately USD $30,000. Combined with a relatively low cost of living compared with many Western countries, this makes Panama particularly attractive to retirees and investors.                                                                                                                           The Pensionado Visa is widely regarded as one of the best retirement residency programs in the world. It offers a straightforward path to residency along with substantial discounts on a wide range of goods and services, and when compared with similar retirement programs elsewhere, it remains one of the most affordable and generous options available.  So, we sold our property, cashed up everything else on Trade Me, gave a heap of stuff away, and put our poodle kennel of eight dogs into boarding pending their trip to Panama. We packed five suitcases — one and a half of which was dog stuff — and booked a flight via Houston to Panama City. We completed all the visa paperwork before leaving New Zealand and had Pension Portability approved before we flew.

We have travelled all over the world on holiday, so culture shock was not really a factor on arrival. Lucky for us we also had friends already here — a huge thank you to Coral and John for everything they shared with us. It genuinely made the first months so much easier.

Spanish is a work in progress. Knowing your greetings and which bathroom to use goes a long way. Getting comfortable with the public bus and metro systems made life a breeze. Kiwis are not big bus users because buses at home are expensive. Here, it is a different story entirely. We can travel to Panama City for USD $2.50 each — equivalent to travelling from Palmerston North to Wellington, (about two hours). The Metro underground train goes anywhere in Panama City for around 25 cents. The main bus terminal is at Allbrook, about 20 metres from the massive Allbrook Mall, and the Metro leaves from the same spot. It is that easy.

I refuse to drive in Panama City — the traffic is ten times worse than Auckland and it would cost far more to drive than to take the bus and train. The buses run every 15 minutes along the Pan American Highway. No booking. No Drama.  Just wait at one of the many stops, jump on, and pay cash as you exit.                                                                                                                         As Jo Seagar would say: "easy peasy lemon squeezy"