Once a nation where poverty cast a long shadow over its people, Panama has undergone a striking transformation since the late 20th century. In 1995, the poverty headcount ratio for all Panamanians stood at a daunting 21.1%. Over the following decades, steady progress chipped away at this figure—dropping to 14.5% by 2005, 7.7% in 2010 and 4.8% in 2015. By 2019, poverty had fallen to just 2.9%, a symbol of how far the country had come. Yet, in the years that followed, the trend began to waver. The ratio edged up to 3.3% in 2021 and 3.7% in 2023—a subtle but important reminder that even hard-won gains can be vulnerable to shifting economic tides. Still, the broader story is one of resilience, growth and the continuing pursuit of a more equitable future. Here’s information about elderly poverty in Panama and what is being done to address it.

The Influence of Non-Contributory Pension 

In Panama, the elderly make up a significant part of the population, and many are facing tough challenges. Despite efforts underway to support this community, elderly poverty in Panama continues to create harsh realities for many. With pensions often falling short, countless seniors find themselves pushed back into the workforce, not out of choice but necessity, to avoid slipping below the poverty line. Back in 2012, around 26.2% of the demographic are still working, a rate nearly twice as high as that seen in countries belonging to the Organization for Economic Co-operation and Development [OECD]. But the picture grows even more troubling when it becomes evident that many seniors in Latin America work in informal jobs or self-employment without access to social protections or benefits, which forces them to labor far longer. 

Fortunately, programs like the Non-Contributory Pensions (NPCs) have begun to turn the tide for elderly poverty in Panama, especially those working in the formal sector. These “social pensions” provide a vital financial lifeline to low-income seniors, offering support even when they have not contributed to traditional pension systems. The impact has been significant; it has greatly  reduced extreme poverty by 66.1% and moderate poverty by 56% among Panama’s elderly. While this program does not magically erase poverty overnight, it lays a crucial foundation for organizations to grant  older citizens a chance to live with dignity, free from the constant threat of poverty. 

“Social protection is thus a universal human right.” In line with this principle, Non-Contributory Pensions (NPCs) have seen a substantial increase in coverage across Latin America since the early 2000s. These programs have become an essential mechanism for safeguarding vulnerable populations, particularly the elderly, from the various risks and challenges associated with aging. For example, as of July 2019, Panamanian elderly individuals who qualify for these pensions receive a guaranteed minimum monthly payment of 120 balboas, providing them with critical financial support. 

Healthy Aging in Panama  

Healthy aging, which the United Nations General Assembly officially declared in 2020, represents one of the most deliberate and strategic approaches to fostering a sustainable society that supports individuals of all ages, with particular emphasis on the elderly. Panama is among the countries encompassed by the Pan American Health Organization (PAHO), which prioritizes transforming societal attitudes toward aging, promoting community environments that are supportive and welcoming to older adults, and implementing “person-centered care and primary health services” tailored specifically to the needs of the elderly. Additionally, PAHO focuses on ensuring adequate resources and infrastructure for long-term care to enhance the quality of life for older populations. 

In Panama, elderly individuals hold a position of great respect within the social hierarchy of their households. Maintaining a healthy lifestyle is crucial not only for nurturing strong family dynamics but also for extending their ability to participate actively in the labor market. Furthermore, good health among the elderly helps reduce medical expenses [especially for the uninsured], promotes greater autonomy, and contributes positively to broader economic growth. 

The National Plan for the Elderly

The National Plan for the Elderly 2022–2025, which Panama’s Ministry of Social Protection (MIDES) oversees, coordinates a range of programs aimed at supporting the issue with elderly poverty in Panama. This comprehensive plan centers on three key priorities: economic security, health and the creation of sustainable environments. Its objectives include ensuring access to educational benefits, reducing healthcare costs, actively monitoring the health status of older adults to prevent future complications, improving caregiving services and fostering healthier living environments where older adults can thrive. The plan involves collaborative efforts among institutions such as the Ministry of Health (MINSA) and the Panamanian Social Security Fund. 

Looking Forward  

In recent years, Panama has made significant efforts to strengthen institutions that support elderly citizens, particularly in low-income communities. With the backing of several international organizations, the country has seen notable progress in addressing pension insecurity since the early twenty-first century. A nation’s economy is deeply influenced by the choices it makes, and Panama’s commitment to caring for its aging population is a powerful example. This initiative is not only economically sound, promoting stability and growth, but also reflects a fundamental human right: the right to dignity and protection at every stage of life. 

– LaRaymee Lee

LaRaymee is based in Sugar Land, TX, USA and focuses on Global Health and Politics for The Borgen Project.

Photo: Unsplash