Travel
What’s retirement like in the Philippines?
If retiring overseas is on your radar, make sure you zoom in on the Philippines. It ticks all the retirement boxes and then some.
By Robyn Lopez
You've calculated your retirement well, but the big question remains: “Do you have enough to fund your dream lifestyle in Australia?”
Older Aussies often find it difficult to stretch their dollars into their vibrant years ahead. Which is why retiring overseas becomes such an attractive option – and the Philippines is a standout option.
While other Southeast Asian countries offer a variety of fun activities and are excellent places to visit, the Philippines has an edge when it comes to retirement: it’s remarkably suited to people over 50s.
Imagine waking up to a calm morning breeze and a scenic view of the mountains, then a day filled with happy smiles and an easy-going energy – welcome to the Philippines.
Best of all, if you’re keen to settle down in the Philippines, your retirement dollars will stretch far.
In fact you’ll only need around $800 to $1,000 for your monthly expenses in exchange for a ‘modest lifestyle’ in the Philippines. This is inclusive of monthly rental costs (2-storey house) in a quiet neighbourhood, groceries, transportation and other entertainment expenses.
Compare this to the ASFA calculations for a ‘modest retirement’ in Australia which suggests a couple needs around $3,978 per month (and that assumes you own your home).
Setting the finances aside, you can also expect smooth communication with locals as English is a commonly spoken language in the Philippines. Which also helps explain why many Aussies who initially planned only to visit, decide to settle down for good.
Why choose the Philippines as a retirement location?
There are several things to think of when planning to relocate to retire and it certainly isn’t a ‘pick and go’ decision. Here’s why you might want to consider the Philippines.
Easy emigration
The good news is that the Philippines is one of the easiest countries to emigrate to as it requires comparatively little paperwork. And if you are 50 and above, you’re eligible to apply for a retirement visa called Special Resident Retiree’s Visa (SRRV) and can legally reside in the Philippines.
It’s also good to note that tickets from Australia (Sydney) to the Philippines (Manila) are generally very affordable (at the time of writing, a round trip started at only A$518 up to A$650 for a more direct flight). That means that before you commit, you can visit regularly to see whether the Philippines is right for you. It also means friends and family may be able to afford to come and see you regularly if you do decide to emigrate.
Pro tip: you can enter the Philippines as a tourist (Australians can stay visa-free for 30 days) before deciding to take the huge step of moving.
Affordable cost of living
Ah yes, the low cost of living in the Philippines means you can certainly enjoy every hard-earned cent in your retirement. But just how affordable is the lifestyle? Here’s a sample breakdown of monthly costs that you might find useful to compare to the same costs you currently experience in Australia:
- Renting a 1 bedroom flat
Provincial areas (Pampanga, Baguio, La Union): P5,000 - P10,000 | A$130 - A$256 per month
City areas (Metro Manila): P25,000 - P35,000 | A$641 - A$897 per month - Shopping for groceries (good for 1 month): P8,000 - P12,000 | A$205 - A$307
- Transportation
Public transportation: P1,500 - P2,500 | A$38 - A$64
Standard rate for car rental: P1,250 per day (sedan) or P38,750 per month | A$32 per day or A$994 per month - Fancy dining
Cruising in a yacht (with buffet food): P2,499 | A$65 per person
Steak dinner with wine (for 2 people): P1,500 | A$39 - Utility and internet bills: P3,852 - P5,000 | A$100-129
Disclaimer: Average costs for rent, groceries, and transportation are based on recent statistics and may vary depending on your preferred location in the Philippines. The cruise and fancy dining rates are based in Sunset Cruise, Subic Bay and may also vary on certain dates..
According to Living Cost Org, it’s essentially 71% less expensive to live in Manila than in Sydney. However, depending on your budget, you might need to reconsider the best areas in Metro Manila, as the cost of living in the city can be a bit higher than those in provincial areas.
Major cities also offer a different environment than those in rural areas. Traffic and noise pollution are a bad combination – so you might want to do a thorough investigation before committing to a city location.
There’s a vast list of great locations for retirement in the Philippines to look into. Depending on your personal preferences, rural areas such as Subic Bay and La Trinidad where there’s a great balance of peace and necessities would be my place to start your search.
Vibrant and welcoming Filipino culture
Nothing beats the warmth of the people for making a place feel like home – and that’s generally true for Filipinos. Their hospitable nature and positive perspective on life is widely recognised around the world.
It’s also good to note that there are plenty of foreigners in their 50s who are permanent residents in the Philippines, so finding a community shouldn’t be difficult at all.
As for local Filipinos’ innate hospitality, most would welcome a new foreign friend to lunch and even teach them how to speak Tagalog.
So, while relocating away from family and friends can be a huge adjustment, it’s certainly easy to become part of the Filipino community. And who knows, maybe this country is meant for you to build connections, meet new friends, or even discover new love?
Close to mother nature
You long for a picturesque view of the mountains? Or perhaps a golden sunset to end the day with a bit of sand on your feet? Well, there are 7,000+ islands in this country – so you get to pick the best one!
Here’s a fun fact: when I relocated to La Union, one of the provinces in the Northern part of the Philippines, I met so many people who were in their 60s and the majority of them were foreigners.
I noticed that they have a routine of walking to the seaside daily (some still do this daily ritual in their 70s). They were basking in the sun in pure tranquillity, meditating as the sun went down. I thought, it’s little wonder so many retirees are tempted to join them…
Spend your years purposefully
In the Philippines, you can expect to live a simple life and find fulfilment in the smallest ways. The Filipino culture’s festive spirit, artistic side in pottery making and painting, and culture of volunteering are some of the opportunities among so many others – the lifestyle will inspire you to continuously learn and align your way of life to your values. Best of all, you’ll have more money available to pursue your dreams.
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