Retiring in the Philippines: Insights for a Comfortable Life
The real answer to where one should retire depends on the desired lifestyle and location. For Muslim retirees, especially those considering the advice provided, Mindanao is suggested due to the higher availability of Halal foods and a significant Muslim population. This recommendation is based on the writer’s experience living in Davao City and owning a farm in the provinces.
Financial Requirements
To start comfortably in Davao or similar areas, a permanent fixed income of 40,000 PHP ($825) monthly is necessary. This amount is more than double the local household income but is essential for maintaining a higher standard of living. Moving further from Davao can increase living costs for maintaining a similar comfort level.
Residency and Visa Considerations
Securing a job isn’t feasible, but bringing $20,000 to $40,000 and depositing it in BNP for a year can obtain permanent residency for most, reducing visa fees. Without this sum, expect to pay $350 to $500 annually to the immigration office and leave the country for one day every three years. Pre-COVID, visa runs were straightforward; for instance, a round trip to Kota Kinabalu cost $165, with additional expenses bringing the total to $750 for a pleasant stay.
Monthly Expenses Breakdown
Government Fees: P3000 saved monthly for visa-related costs.
Housing:
- Unfurnished House: P5000 to P10,000 monthly in outlying barangays.
- Furnished House/Apartment/Condo: P25,000 to P50,000 monthly, which may not fit a P40k budget.
Utilities:
- Water: P250 monthly.
- Electricity: P1500 with fan use; up to P5000 with frequent aircon use.
- Internet: Fiber connection at P2000.
- Cable TV with HBO: P1000.
Transportation:
- Taxi to Mall: P200 or less.
- Taxi to Downtown (Immigration): P300 or less.
- Tricycle: P20 to P50.
- Jeepney: P8 to P25.
Food:
- Monthly expenditure of about $350, covering several BBQ night market visits, a weekly restaurant trip, and snacks. Local food habits are adopted to keep home food costs down. A notable expense is locally roasted coffee at $4.25 per pound.
Initial Setup
Bringing $5000 for initial accommodations in a hotel, Airbnb, or furnished apartment is advisable. This amount allows flexibility to explore the city and decide on a permanent residence while leaving funds for furnishing an unfurnished house.
Property Advice
Condominiums in Davao generally depreciate, and condo fees can be as high as or higher than rent, making them a less favorable purchase option.
Conclusion
The Philippines, particularly Davao and Mindanao, offers an attractive retirement option with affordable living costs, provided thorough planning and consideration of lifestyle preferences are undertaken.
