Christmas Vacation in Panama / checking it out for retirement

I would suggest spending a day on the Hop On Hop Off bus.  It will take you to many different areas of Panama City to give you a good look around.  It is a double decker bus open on the top and closed in (A/C) in the bottom.  I think it is about $30. for the day.  After that you should have a good idea of what to do with your week in Panama.

I don't live in the city, but I can tell you to prepare for fireworks. Christmas in Panama is a blast. The celebrations ramp up all Christmas Eve with midnight being the height of the fireworks and festivities. Then, everyone comes indoors to enjoy dinner and gifts, and family time. Christmas Day itself is relatively quiet. New Year's Eve is more of the same with festivities and fireworks peaking at midnight. You may see some interesting customs like effigies full of fireworks that get lit on fire at midnight, eating grapes, walking around with suitcases, etc. I live in David, but I hear there are a lot of festivities in the city as well so you should have fun.

You will find the weather at this time of year very hot , as we  are going into high season. As for the cost of living Panama is not cheap, if you are a Canadian you will definitely find that the cost of living is quite high.
If you want cool weather you need to go to Boquette which is about 5 hours from Panama City, very pretty place in the mountains and a lot of places to visit.

Most of the beach towns will busy and very hot.