From the balcony of his 12th-floor condo, retiree Bill Dorgan can see the ocean and a skyline that changes almost daily as high-rises pop up on the horizon. He could be looking out on any number of South Florida neighborhoods. Instead, he's a 2 ½-hour plane ride away in Panama City, Panama, one of the hottest new retirement havens in the hemisphere.
As a foreign resident on a pensionado visa, he won't have to pay property taxes for 20 years on the 2,500-square-foot condo he bought and renovated for $170,000.
The 58-year-old former Fort Lauderdale resident can't help but chuckle at that part.
''It still amazes me,'' the retired management consultant says with a sigh. ``We live smack in the middle of the banking area, with easy walking to shops, restaurants, theaters and night life. You can walk around in this city. But, if you want, you can take a taxi from one end to the other for $2.''
Stories like Dorgan's of First World conditions at Third World prices are fueling an expatriate retirement boom in Latin America and, to a lesser extent, the Caribbean. For years, small numbers of adventurous Americans have migrated south to Mexico or Costa Rica in search of affordable and exotic retirement alternatives. Today, as millions of baby boomers reach their 60s, more could be contemplating retirement abroad as a way to stretch their dollars and live better for less.
This new breed of intrepid retirees wants ocean views and unspoiled land with low prices and low crime rates. They don't plan to sit idly by the sea. They are heading south to countries such as Nicaragua and Honduras to reinvent their lives. In turn, these countries are rolling out the welcome mat, offering tax breaks to foreigners who retire there. Many have changed their foreign investment laws, making it easier for retirees to buy property.
The move to retire to more remote destinations is partly fueled by rising prices in popular spots, such as Costa Rica and Florida. As the media picks up on the trend and an increasing number of Americans claim passports -- thanks to tougher travel requirements that went into effect in January -- some predict that countries such as Ecuador, Argentina and Uruguay will make it onto the radar of more retirees.
"FLORIDA IS FLAT"
''Instead of retiring from Pennsylvania to Florida, people are retiring from Pennsylvania to Nicaragua,'' says Lief Simon, who oversees real estate for International Living, a company that conducts real estate seminars in more than a dozen countries. ``Florida is expensive, and Florida is flat, and it's getting crowded. In Latin America, you may have to put up with driving on a dirt road to get to your development and maybe the power goes out once in awhile, but you've also got a lower cost of living and cheaper real estate. A lot of people are just up for the adventure.''
No one tracks how many Americans have retired abroad. Overall, 242,128 American retirees had their Social Security benefits sent to foreign countries, according to data from the Social Security Administration. That was up slightly from the 219,504 who listed a foreign address in 1999. Those numbers don't represent all of those retiring overseas, however, since many people keep a U.S. mailing address.
Companies like International Living that conduct research trips for potential investors and retirees say their groups are growing younger. Many people in their 40s and 50s are now showing up at seminars with topics such as ''Paradise Within Reach'' and ``Ultra Luxury Lifestyle Made Possible in the Tropics.''
A RUDE AWAKENING
But those with romantic notions of living out "A Year in Provence" or "Under the Tuscan Sun" may be in for a rude awakening. Although American retirees can collect Social Security wherever they go, Medicare doesn't cover healthcare received outside the United States. Many have to pay for emergency-evacuation insurance, which pays for flights to U.S. hospitals in case of serious illness.
Although some living costs are lower, others, such as electricity, can be higher in remote areas. Infrastructure like roads and sidewalks can be poor, too. And because most foreign countries don't have multiple listing services, finding great home buys can be difficult.
Dorgan, the former Fort Lauderdale resident, considered moving to Costa Rica, Ireland and Spain, among other places, before he and his partner, graphic designer Raymond Rodriguez, settled on Panama City 10 months ago. The two have run into at least five South Florida friends who also have retired there since they set up permanent residency in June.
''Panama is where Costa Rica was 15 years ago,'' Dorgan said in a phone interview, ``but it's more accepting, more accommodating and the money is the American dollar, so we don't have to worry about exchange rates. You can still get a great buy here compared to South Florida if you're willing to try something different.''
