Budget Retirement. How much do you need to retire in the Philippines?
The Philippines, not only in South East Asia but worldwide, is one of the most popular retirement destinations! The true question is, can I make the Budget Retirement the Philippines work and how much do you need to retire in the Philippines? What about a low budget retirement in the Philippines?
Let me share with you why you should retire to the Philippines today and live on a small budget.
Government support for expats is excellent, living costs are modest, health care is affordable, and it’s a lovely nation. International living doesn’t get any easier, from the diverse and bustling cities in the Philippines to their many beautiful beaches.
How Much Do I Need to retire in the Philippines?
There is a whole department in the Philippine government dedicated to promoting expats to retire there. This implies that expats enjoy a host of other advantages as well as cheap living, including:
- Up to 7,000 Duty-Free Import
- Exemption from taxes on airports
- Discounts from Alliance
What Is The Cost Of Living In the Philippines?
The Philippines’ cost of living is 50-60% less than in countries like the United States, the United Kingdom, or Australia.
To give you an idea of what you need to live in the Philippines, here are some average costs:
Philippine costs and expenses:
EXPENSES COST (USD)
Small apartment rentals in a decent neighborhood $150 – 400
- Utility monthly bills $40 – 80
- Link to the Internet $30 – 70
- Three-course wine & dinner for two $14 – 20
- Pizza, small slice, at the mall kiosk $2
- Monthly Bill for Groceries $150 – 250
- Private medical consultation schedule $6 – 12
- Haircut for Men $0 .60 – 1.50
- Theater for two $8
- Gallon of milk $3.00
- One hour massage $4-6
- About a gallon of gas $3.50
- A month of public transit $20
- A local Tricycle ride to the market, (1/2 Km) $.015 – 0.25
- Beer pint $0.60 -1.00
- 10 Packs of cigarettes $7 – 12
- Maid service for five days $15
- A simple dental filling $6
- A low budget clean hotel, with A/C, per night ($270 p/mo) $9
- 50Kg of rice (100 pounds) $21
- Phil care Health Insurance, per month $36
- Beach cabana / “Cottage” per day $2
- Ground beef per kilo (2.25 Pounds at $3.50) $8
- Jollibee meal $2.50
How much do you need to retire in the Philippines?
The answer is; the average cost of retirement is between $500 and $1,200 a month in the Philippines, depending on the city you want to live in.
How much do you need to retire in the Philippines is all about your budget, and that depends on where you are living. The cities cost more, thus the $1,200 per month. Living in the province areas and living a low budget lifestyle is where we see living on $500 a month, and many people do.
For example:
MOVING TO PHILIPPINES
It is easy to understand the Philippines’ visa process, and there is much less work involved than some other famous retirement destinations.
How much do I need to save to move to the Philippines?
To get your visa approved, you will require at least $10,000 in a savings account on top of your monthly pension income.
Depending on your circumstances, you might need more, and this amount does not include visa costs and other fees.
Visa and other Philippine documentations needed to move to the Philippines.
You will need a Special Resident Retiree Visa (SRRV) before you travel to the Philippines.
You need to meet the following conditions to move to the Philippines:
- Be 50 years of age at least
- Make a refundable deposit of $10,000 ($20,000 if you have no guaranteed monthly income) into a Philippines bank account.
- Have a monthly pension of at least $800 a month, or $1,000 for couples, could be enough.
There are a few additional costs to remember, too – for the main applicant; the visa application costs $1,400 plus $300 extra per member of the family. Every year, you’ll need to renew them, and that costs $360 for a family of 3, plus $100 for each additional child.
You must get an Alien Certificate of Registration (ACR-I), which contains your fingerprints and other biometric details, as well as a visa. The cost is $50, and you have to upgrade it on an annual basis.
If you don’t have an $800 a month pension, don’t worry!
You can count other benefits in your retirement income, such as US social security payments, for example.
Yearly costs & requirements for a couple
- Make a one-time refundable deposit of $20,000 per couple.
- $1,700 visa expenses
- $360 annual renewal of SSRV visas
Yearly costs for a family of 4 with a verified income.
- Deposit $25,000 ($10,000 + $15,000 for the 2nd/3rd dependent child)
- $2,300 fee of a visa
- Renewal of $460 visa
Health Care In The Philippines
You should consider sticking to major cities like Manila if you need convenient access to healthcare. Hospitals are scarce in the countryside, and public transport is not always there to take you to a doctor when you need one.
Philippine Taxes For Expats
It is apparent and quick to understand the income tax system. You can only be taxed on profits received from sources in the Philippines and never at more than 35%
However, to stop the final withholding taxes on earnings and winnings, you have to get your visa and become a citizen.
Housing In Philippines
It is popular in the Philippines for retirees to rent a house or condo. For about $300 a month, condos and apartments can be easily rented.
You can use the $20,000 Visa retirement deposit to buy a condo or place a downpayment on one if you want to. If you want to buy a house, you need to have $50,000 deposited in a Philippine bank or not buy a detached house unless you are married to a Filippino. Whatever you choose, make sure that your home in the Philippines is somewhere that has a stable infrastructure, like utilities and cable services.
General Philippine Retirement Tips
For about $800 and $1,200 a month, you can live a luxurious retirement lifestyle in the Philippines. The money might also extend to helping around the house with housemaids and gardeners!
The Philippines’ cost of living is nowhere near as much as it is in the US, UK, Australia, or Europe; entertainment, leisure, and other things don’t cost. It costs less than $5 to go to a movie, and your typical three-course meal is about $7, and you can get spa treatments for less than $10.
You will soon be able to differentiate between the ‘local and the tourist spots” after you settle down in a community. Getting acquainted with local life will also save you some cash.
Pros And Cons Of Retiring In Philippines
Pros:
Low cost of living
To find a lower cost of living, many chose to retire overseas. It’s no disappointment for the Philippines, and most expats can comfortably survive on around $800 to $1,200 a month. This involves food, board, and lodging with a private maid and driver and sometimes dining out.
Philippine expat incentives
Expats are welcome in the Philippines, and there is even a government department dedicated to attracting foreign pensioners. Expats enjoy a range of financial advantages, including concessions for the 60+ community, duty-free imports of household goods worth $7,000, and exemptions from travel taxes for airports.
Retire in a beautiful setting
For the tropical climate and natural beauty, the Philippines is renowned. It is easy to be in awe of your surroundings almost anywhere in the country, from the tops of its lush mountains and beaches to its vibrant coral reefs and everywhere in between.
Cons
Infrastructure problem
In recent years, the Philippines has been one of the fastest-growing economies in Asia, but infrastructure concerns could hold the country back. According to a recent World Economic Forum Global Competitiveness Study, infrastructure problems are the critical economic barriers facing the country.
Power failures, prolonged water shortages, obsolete telecommunications networks, and deteriorated bridges and roads could occur. The government currently has a congoing project showing upgrades and comprehensive development of roads, bridges, and express highways for intercity construction.
Health care in the Philippines
Although expats in Manila have access to outstanding and accessible healthcare, some places in the Philippines don’t provide the same care level, lacking both facilities and investment. For expats who have chronic illnesses requiring regular care or who have conditions that may be deemed out of the ordinary, this can be particularly troublesome.
Safety concern
Sporting events, theaters, malls, mass transit networks, including airlines and other public venues where large crowds gather, have been attacked by extremists. There were also crowded nightclubs, shopping centers, buses, and famous restaurants that have been attacked.
Conclusion
The Philippines is home to a well-established population of expats who have retired overseas in search of a better atmosphere, landscape change, new cultural experiences, quality healthcare, and lower living costs. The Filipino people are always friendly and welcoming to foreigners, and retirees are provided with a range of government incentives. What’s more, it is understood that Filipinos are compassionate, supportive, and most of all, can speak English.
It is a strict measure that requires a lot of research and planning to decide to retire abroad and find out where to go. Like any other country that might be on your list of possible retirement spots, the Philippines has both its pros and cons. Before making any choices, should one should be carefully measured.
Visiting the place, ideally more than once before making any choices, is a good idea. Instead of becoming a tourist, consider visiting from a resident’s perspective and meeting locals by entering local outreach clubs such as the Lions Club International and Habitat for Humanity. You’ll have a clearer view of the local lifestyle this way and become a solid community member.
~Staff
Tags: moving to the philippines, how much do you need to retire in the philippines, how much money do you need to retire in the philippines, how much money to retire in philippines, how much money do i need to retire in the philippines, how much money to retire in the philippines,