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Retirement Planning for the Philippines

PHILIPPINES

The Philippines is a sovereign island nation, situated in the west Pacific Ocean. It consists of about 7,641 islands, that are categorised broadly under three main geographical divisions from north to south: Luzon, Visayas and Mindanao.

The country has a land area of 298,170 square kilometres, on which around 104 million people live. The official language is Filipino (Tagalog), although English is widely spoken. The Philippines proudly boast they are the only Christian nation in Asia, with over 86% of the population Roman Catholic.

The Head of State is the President, Benigno S Aquino II.

Climate

Tropical, with three distinct seasons. The hot dry season (Summer) from March to May, the rainy season, from June to November and the cool dry season from December to February.

Currency

The official currency is the Philippines peso (PHP) although US dollars (USD) are widely accepted.

Communications

A good quality system, especially in urban areas. The international code is +63 and the internet code is .ph

Healthcare

Quality medical services are available in major urban areas in the Philippines, although these are less developed than in Thailand and Malaysia, and generally what is available in Australia. More information is covered in our healthcare section.

Capital – Manila

Manila is the commercial, judicial and transport heart of the country. Home to 12 million people, it is one of the most congested cities in the World. Whilst its pollution may put off some visitors, it has a vast amount of architectural and cultural landmarks, glittering shopping malls, diverse markets and a pulsating nightlife. For those retirees that do call Manila home, Makati is the district most chose to reside.

The city is served by one major airport, Ninoy Aquino International Airport (MNL). The airport is 7kms from the South of the city and the gateway for Australians into the country.

Qantas, Philippines Airlines and Cebu Pacific fly daily direct flights between Sydney and Manila. Philippines Airlines fly 3 times a week from Melbourne, and 4 times a week from both Cairns and Darwin. All other Australian cities access Jakrta indirectly.

Key Retirement Locations

Baguio

The city sits about 5,300 feet above sea level in the Luzon tropical pine forests. It has a population of around 340,000 people, and is known as an educational centre, with up to 8 colleges and universities, plus a plethora of trade and technical schools. There are several bus services linking Baguio to Manila (travel time about 4 hours). In addition to the many festivals and art shows, retirees here enjoy the outdoor activities, such as golf, horseback riding, and biking.

Cebu City (CEB)

Cebu combines the convenience of a major city with a close proximity to beaches and mountains. It is the region’s centre for commerce, education, industry and trade, and has many hospitals and universities. Cebu is the second largest city in the Philippines, with a population approaching 1 million people. It has an international airport, with access not only to many Asian cities, but also direct links to Los Angeles, Dubai and Russia. Regular flights to Manila provide easy access for Australians to the city.

Dumaguete (DGT)

Dumaguete is the capital, principal seaport and largest city in the province of Negros Oriental. It has a population of around 122,000 people and was named as one of the most ideal places in the world to retire in the 2014 Retire Overseas Index (released by the ‘Overseas Retirement Letter’). Known as a centre of learning in the South, it is another highly popular University town. Dumaguete is served by a domestic airport (Sibulan) which has regular daily flights to Manila and Cebu City.

Tagaytay

This beautiful town sits in the mountainous region of the Philippines’ main island. Known for its scenery and cooler climate, Tagaytay rests on the shores of Lake Taal. It has world class golf courses, and an abundance of outdoor activities. The view of Taal Volcano Island from the town is one of the Philippines most iconic attractions.

Tagaytay has a resident population of 62,000, giving it a cosy small town feel, but only 55 kms away is Manila, and all the conveniences that a big city can offer.

Other favourites

Boracay

Home to a beach which is regularly voted as one of the most beautiful in the world, this small magical island has great shopping, restaurants and nightlife, in addition to plenty of water sport activities.

Lifestyle

PHILIPPINES LIFESTYLE

Retiring to The Philippines

When considering retirement to another country, you want everything to go smoothly and know your finances are being managed in a way which maintains your retirement lifestyle.

You also want to know that you have a team you can work with to make your dream a sustainable reality. The Philippines offers a broad range of lifestyle choices, and Retire to Asia recommends that you explore the country to see and feel what’s right for you. Sometimes retirees will begin their retirement in major expat locations, such as Cebu or Dumeguete before moving into lesser known areas.

Better quality of life in retirement

The cost of living in The Philippines is significantly cheaper than in Australia. Quite simply, your money goes so much further, providing you with the opportunity to have a quality of life which is typically only available to the wealthy in Australia. This is one of the key motivations for retiring to Asia.

The exact savings will vary on where you decide to retire, and the type of lifestyle you choose to live.

For example, it is generally cheaper to live in Tagaytay than in Manila. Similarly, you average grocery bill will be less if you buy local products rather than foreign imported foods. However, all things being equal, the ‘cost of living’ savings when compared to Australia are very significant.

Comparing the cost of living in The Philippines to Australia

In this table, Retire to Asia compares the average percentage saving a retiree can expect on a range of products & services in The Philippines with the cost of those products & services in Sydney:

ItemCebu CityDumaguete
Consumer Price-50%-51%
Meal for 2 (3 Courses)-76%-74%
Beer (Domestic)-81-81%
Coffee-20%-25%
Bottle of Water-80%-77%
Groceries (Local)-43%-50%
Transport (Local – Various)-95%-94%
Utilities (Electric/Water/Garbage)-45%-65%
Mobile (Pre-Paid)-72%-70%
Internet (Unlimited Cable/ADSL)-12%-26%
Cinema Ticket-73%-76%
Rent-83%-85%

Source: Numbeo

Settling into your new lifestyle

Whilst it’s exciting to retire to a dream location, either temporarily or permanently, there are a number of tasks that need to completed, and arrangements that need to be made.

Retire to Asia provide a broad range of services to assist you with this exciting move. These services include the following:

Simple and easy retirement visas

Retire to Asia assist with the application for you visa and help you through the process.

Access to the best healthcare, insurance and financial services

Retire to Asia provides advice and through our partner network, ensure your needs are met at the most cost effective price.

Assistance with travel and relocation arrangements

Retire to Asia can assist and guide you through the requirements to move not only yourselves, but also your possessions, and any pets you may have.

We’ll help get you settled with our ‘Welcome to The Philippines’ service

Retire to Asia provides contacts for local clubs, guidance on property, information on local doctors, dentists, mobile phones and the internet.

Ongoing management of your finances to ensure peace of mind

Retire to Asia’s financial group will ensure your retirement savings provide you with a reliable income stream. We assist with budgeting and keep you updated to changes to superannuation that may impact you. Retire to Asia can also manage your investment portfolio and even assist with opening a Philippines bank account.

We’re always here to help

Retire to Asia provides ongoing support and advice over the phone, or through our website and newsletters. We are here to assist you.

Healthcare

The level of per capita healthcare in the Philippines is one of the lowest of all South East Asia’s major economies. However, the Philippine government is committed to improving this standard and over recent years has made some significant inroads in addressing this inequity.

Healthcare in the Philippines is variable, ranging in quality from excellent to dire. If you live in and around cities, then the level of healthcare is generally of a high standard, while many rural area facilities lack infrastructure, technology, and trained medical staff.

Despite these challenges, expats are generally able to access good, affordable healthcare, so long as they live in or around major regional centres, or are willing to travel to major regional centres.

As with many SE Asian countries, the Philippines offers both a public and private healthcare system. As far as healthcare costs are concerned, expats consider both services to be very affordable.

Communication is not a problem with nearly all medical staff are able to speak and understand English.

Public Healthcare

The main different between public and private hospitals is the facilities and technologies offered. Most of the public hospitals will not be equipped to the same standard as private hospitals however, unless there is a major medical emergency, the public hospital system will be adequate and the most cost effective solution should you be on a budget.

Private Healthcare

Approximately 60 percent of the Philippines hospitals are privately operated, so private healthcare is widely available in major areas. The treatment in private hospitals is excellent and whilst expensive by local standards, the cost of treatment is cheap compared to western standards.

If you do not have international private health insurance, you will be asked to pay a deposit on admission to the private hospital service.

Get a quote for International Private Health Insurance in the Phillipines >>

Philippine Health Insurance Corporation (Philhealth)

Philhealth is the national government operated health insurance scheme. Also open to resident expats, this service provides the cheapest health insurance for expats for services provided by any government hospital.

Philhealth provides both inpatient and outpatient cover and reimburses up to set limits within 60 days of submitting the reimbursement request.

Foreigners can enrol by submitting a member registration form with a photocopy of their Alien Certificate of Registration issues by the Bureau of Immigration. If you are married to a Filipina, you are able to register as a dependent and also get cover.

Visa

Summary of Filipino retirement visa requirements

The Philippines has a number of retirement options, which are part of program known as the Special Residents Retiree’s Visa (SRRV)program.

There are four types of SRRV, the ‘Classic’, the ‘Smile’, the ‘Courtesy’ and the ‘Human Touch’. Each type of visa has its own age and financial requirements, but all of them require you to provide a Medical Certificate, secure a Police Clearance and in certain circumstances, a National Bureau of Investigation (NBI) Clearance.

What are the age and financial requirements for each SRRV option?

Classic:

Designed for active/healthy retirees who require a Visa Deposit of US$50,000, which is A$66,666 (using a rate of US$0.75 for A$1.00), if the applicant is between 35 and 49 years of age. For applicants 50 years old and above, the Visa Deposit is US$10,000 (A$13,333) with a Pension and US$20,000 (A026,666) without a Pension.

Smile:

Designed for active/healthy retirees, aged from 35 years and above, who are required to maintain a Visa Deposit of US$20,000 (A$26,666).

Courtesy:

Designed for former Filipinos (aged 35 years and above) and foreign nationals (aged 50 years old and above) who have served as diplomats, ambassadors, officers/staff of international organisations and must maintain a Visa Deposit of US$1,500 (A$2,000).

Human Touch:

Designed for ailing retirees, aged from 35 years and above, who are shown to have medical needs and services. A Visa Deposit of US$10,000 (A$13,333) is required, together with a monthly pension of at least US$1,500 (A$2,000) and Health Insurance acceptable in Philippine hospitals.

Note: All Visa Deposits must remitted to a designated and/or accredited PRA Bank in the Philippines.

How long is the SRRV visa valid?

Indefinite

Is the visa multiple entry?

Yes, you can leave and re-enter the country as many times as you like.

Can I work whilst I’m in the Philippines?

Yes, work is permitted.

Property

Introduction to Property in the Philippines

Buying apartments in the Philippines

Foreigners are allowed to buy apartments freehold, as long as the apartment block as a whole is no more than 40% foreign owned.

Buying land in the Phillippines

Foreigners are prohibited from buying and owning land in the Philippines. You can however, own the building on a piece of land, just not the land underneath.

Some foreigners get around this by purchasing in their Filipino spouse’s name. In this case, legal ownership will be with the spouse and you should be aware that you may not have any rights to the property should the relationship sour.

Corporations can also purchase property in the Philippines but must be at least 60% Filipino owned and have at least 5 shareholders. The benefit of this approach is that you will still retain a 40% ownership should a falling out occur.

Renting in the Philippines

Rental opportunities are broad and numerous. There are a wide range of properties available to suit all styles of life, whether it be at one of the beautiful beach locations the Philippines are renowned for, or perhaps the bustle of Cebu, or even somewhere like the Makati district of Manila.

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