Retirement, according to Cambridge Dictionary, is the act of leaving your job and stopping work. Some sources also define retirement as reducing your workload. Most people retire when they reach old age but the retirement age varies from one country to another, with some countries have different retirement ages for men and women. As of 2021, the retirement age in Australia is 58 years old for men and 66.5 years old for women. In Canada, the retirement age for both genders is 65 which is the same compulsory retirement age in the Philippines. During your retirement, you can either take on a lighter workload or enjoy your time with vacationing. Once you have retired, you can your pension and whatever perks you have prepared for your retirement.
Retiring in your country, especially if you are well prepared, is fine on its own –however, according to an article reviewed by a certified public accountant, moving abroad is a great way to stretch your retirement money.
Why Many Foreign Nationals Choose to Retire in the Philippines
In a study conducted by Howard, the main reasons why many western people like to migrate and eventually retire in the Philippines are low cost of living, warm climate, availability of attractive partners, and dislike of a home nation. Retiring in the Philippines is popular among westerners and its Asian neighbors, like Koreans. Patrick De Leon conducted a study identifying the reasons why Koreans leave their country and why they migrate to the Philippines. The respondents revealed that their reasons for leaving Korea are their relatively lower educational attainment and their businesses’ underachievement. They chose to migrate to the Philippines because of business opportunities, cheap labor, English education, leisure, tourism, good climate, low living costs, accommodating nature of Filipinos, opportunity to convert religions, and favorable national laws and local ordinances to foreigners.
Voice of America, the largest US international broadcaster, has also reported that the ease of obtaining visas in the Philippines makes their visa program stand out from the rest of Asia. In fact, the Philippines has released a total of 6,437 visas last 2018. Since 1987, the Philippines has released more than 63,538 visas to foreign retirees.
Retiring in the Philippines
Retirement programs in the Philippines are competitive, that's why many people opt to retire there. For Filipinos, several agencies help them prepare for their retirement as soon as they start working. The major insurance agencies in the Philippines are Social Security System (SSS) and Government Service Insurance System (GSIS). Workers of private companies contribute monthly to SSS for insurance while government employees subscribe to GSIS. Retired Filipino workers will get their benefits and pensions from either of the two companies.
Foreigners have different requirements from Filipinos. Their major requirement is to get a Special Resident Retiree’s Visa.
Requirements for Foreigners Retiring in the Philippines
According to the Philippine Retirement Authority (PRA), “the Special Resident Retiree’s Visa (SRRV) is a special non-immigrant visa for foreign nationals who would like to make the Philippines their second home or investment destination.” The SRRV is a visa that you can use for a lifetime. It also entitles you to many privileges including the right to stay in the Philippines as long as you want. In short, it is a ticket you need to have in order to access the benefits of retired life in the Philippines.
Philippine retirement authority Special Resident Retiree’s Visa
Obtaining your SRRV is very easy. For you to be qualified, you need to be a 35-year old foreign or former Filipino citizen. If you have a spouse, you must be legally married. If you have children, they must be legitimate or legally adopted, below 21 years old, and unmarried upon your application. As for the requirements, the PRA needs you to submit your original valid passport with an updated temporary visitor’s visa, original valid medical clearance, 12 pieces of 2 x 2 inches photos, SRR Visa deposit that is inwardly remitted, marriage certificate of your spouse and birth certificate of your child, accomplished PRA application form, and original valid police clearance from your country of origin. If you stayed in the Philippines for more than 30 days from the last date of entry, then an additional NBI clearance will be required. You will have to note that additional requirements may be requested from you depending on the SRRV Visa Option you choose. Your medical and police clearances are only valid for 6 months and all of your documents must be translated into English and authenticated by the Philippine Embassy or Consular Office. In addition, you also need to pay several fees like a one-time service fee, US$1,400 for the principal applicant, US$300 for each dependent, and an annual fee of US$360 that is already good for the principal applicant and two dependents.
There are different options of SRRV (retiree visa )that you can choose from based on what suits you best. The SRRV Smile is for healthy or active retirees who want to maintain their SRRV deposit of US$20,000. The SRRV Classic is for healthy or active retirees who opt to use their SSRV deposit into active investments like purchasing condominium units. SRRV Human Touch is for ailing retirees who need medical care and are aged 50 years and above. SRRV Courtesy is for retired officers of International Organizations recognized by the Department of Foreign Affairs and at least 50 years old. The last option is the SRRV Expanded Courtesy which is for at least 50-year old retired Armed Force officers of foreign countries with existing military ties and/or agreement with the Philippine Government.
Are SRRV holders exempted from Travel Tax?
SRRV holders are indeed retirees. As such, they are already living on a tight budget and can't afford to travel much. However, the Philippine government does offer a travel tax exemption for retirees. So if you're an SRRV holder, make sure to take advantage of this!
Once you received your SRRV, you are allowed to enjoy the benefits of an indefinite stay, entry, and exit in the country, access to the Greet and Assist Program in selected Philippine airports, free assistance in transacting with other government agencies, entitlement to PHILHEALTH benefits and privileges, other small benefits like a free subscription to PRA newsletter and discount from PRA accredited merchant partners, and “exemption from Philippine Bureau of Immigration annual report, customs duties and taxes for one-time importation of household goods and personal effects worth up to US$7,000 tax from pensions and annuities, travel tax, and student visa or study permit.”
Things to Consider Before Retiring in the Philippines
While it seems promising to retire in the Philippines, you should still consider many things before you make your decision final. The first factor you need to consider in order to save more money is the cost of living. Living in the Philippines, especially in some provinces, is relatively cheap compared to the US. However, the capital of the Philippines is the third most expensive city to live in Southeast Asia despite having the lowest average salary for the working class. Next, you also need to consider some laws that are relevant to immigrants. The first law, the Philippine Immigration Act of 1940, is about the establishment of the Bureau of Immigration of the Philippines and the visa policy in the country. The second is the Alien Registration Act of 1950, a law requiring alien residents to register in the Bureau of Immigration or city or municipal treasurers. The last law is the Condominium Act which is a law that clarifies everything about condominium ownership. You need to know these laws for you to understand your rights and responsibilities once you decide to retire in the Philippines. Lastly, you need to keep in mind that living in the Philippines has its downsides. The Philippines has a high crime rate. In 2021, a total of 360,573 crime incidents have been reported. Scams and frauds also exist in the country with a total of 869 online fraud cases in 2020. Natural disasters are also a common occurence in the country. Located at the Pacific Ring of Fire, earthquakes are common in the Philippines. The country is also frequently hit by typhoons as they are located beside the Pacific Ocean.
Why would it feel like home for retirement in the Philippines
A lot of people choose to retire in the Philippines because it feels like home. The locals are warm and friendly, the cost of living is low, and the weather is sunny and tropical. Plus, official language English is widely spoken so communication won't be a problem.
One of the most common choices made by people from the United States is to visit the Philippines on a tourist visa in order to determine whether or not they would be happy to reside there permanently. They may investigate their immigration choices and try out their lives on a limited budget to see whether or not they are able to adapt to the changes.
Final Thoughts
Choosing the Philippines as your place of retirement comes with many perks. The application process is easy, multiple retirement programs are available, the place is nice, and Filipinos are generally hospitable. Nevertheless, there are many factors you need to consider as the Philippines is not a perfect country. But, if you think you can spend the rest of your life without minding the negativities of living in the country, then the Philippines is the perfect place for you.
Frequently Asked Questions (FAQs)
How much income do I need to retire in the Philippines?
It depends on your lifestyle. A comfortable retirement in the Philippines could cost as little as $600 per month, including rent, food, drinks and travel. But you could also spend much more than that if you want a luxurious lifestyle.
The important thing to remember is that the cost of living in the Philippines generally low cost than in most Western countries, so you can get by on your social security benefit a much smaller budget. And if you're retired, you don't need to worry about saving for retirement – your Social Security or pension payments will be more than enough to live comfortably in the Philippines.
Where do most expats live in the Philippines
Many expats in the Philippines tend to retire in one of two places: either in Manila or Cebu. There are pros and cons to each location, so it really depends on what you're looking for in a retirement destination. Both are great places to meet new friends and English is widely spoken.
Manila has the advantage of being the Philippines capital city, so you'll have all of the conveniences and amenities that come with living in a big city. On the downside, it can be quite crowded and noisy, and traffic can be a real nightmare. But if you're looking for excitement and convenience, Manila is definitely worth considering.
Cebu city, on the other hand, is much more relaxed than Manila. It's a great place to enjoy island and has many sandy beaches.
Retire in the Philippines buy a farm and grow your own food
Yes, you can certainly retire in the Philippines and buy agricultural land to grow your own food. The cost of living in the Philippines is much lower than in most other countries, so you'll be able to live comfortably on a smaller budget. And with plenty of farmland available, it's easy to find a place to purchase or rent land for farming. Great way to make some passive income or help out fellow retired expats.
One thing to keep in mind, however, is that the weather in the Philippines can be quite hot and humid beautiful tropical weather, which may not be ideal if you're not used to that year round warmth. But overall, the Philippines is a great place to retire and enjoy all that the country has to offer.
Retire in the Philippines power outages and modern amenities
When it comes to retiring in the Philippines, there are a few things you need to take into account. For example, while the country enjoys a relatively reliable power grid, power outages can and do happen from time to time. So if you're planning on retiring in the Philippines, it's important to have a Plan B in case of an extended power outage.
Another thing to consider is that while the Philippines has made great strides in terms of modern amenities and infrastructure, there are still some areas that are more rural and lack some of the conveniences we take for granted back home. So if you're thinking about retiring in the Philippines, it's important to do your research and make sure you choose a location that best suits
Is there any civil unrest in Philippines
Currently Philippines is pretty common these days. Lots of people retire every day, which means that there's always somebody new who wants to take their place. The government tries to keep things under control, but it's pretty difficult. Things are constantly changing and evolving, so it's hard to say what will happen next. But civil unrest is definitely something that you should be aware of if you're planning on visiting the Philippines.
Philippines has world class diving and swimming
The Philippines is world-renowned for its stunning diving and swimming spots. It's no wonder, then, that more and more people are retiring to the Philippines each year. With warm weather, beautiful beaches, and some of the best diving locations in the world, it's no surprise that this Southeast Asian country is becoming a popular retirement destination.
If you're thinking of retiring to the Philippines, there are a few things you should know. First off, although English is Official language alongside Filipino widely spoken throughout the country, it's always helpful to learn at least a bit of Tagalog (the national language). Secondly, retirees that are international living will be happy to know that there are plenty of activities and amenities available specifically for them.
What are the different visa options if I want to retire in the Philippines as a US foreigner?
There are three different visa options for US citizens who want to retire in the Philippines. The first option is the Special Resident Retiree’s Visa (SRRV) which is for retirees who are at least 35 years old with a pension of at least $1,000 per month. The second option is the SRRV Smile which is for retirees who are at least 50 years old with a pension of at least $800 per month. The last option is the SRRV Classic which is for retirees who are at least 21 years old with a pension of at least $1,200 per month. All three options have different requirements and benefits so make sure to choose the one that is best suited for you.