Countdown To Retirement In The Philippines

[Ynot]

I've bee thinking about this for sometime, I'm unfortunately not living the dream yet, I must or I suppose I choose to work until I am 60 in 25 months time, mainly for tax reasons.  If I retire now on the superannuation (super)  I have, the government will tax me 30% as my super as it has not yet been taxed.  However, If I wait till I am 60 and then stick my super in a complying super fund, then I only pay tax at 15%, so you can see the incentive not to touch the super before I turn 60. Given I will be relying on my super to live, its best I wait till I am 60 before I do so.  

 

I figured those people in a similar situation to myself, not retired and living in the Philippines yet, could post their plans and or the things they must do in order to be ready on day 1 of their retirement ready for the Philippines. 

 

Those people who have already retired and living in the Philippines can remind us (the newbies) on things that we need to do before we leave, how many months out from leaving you should do certain stuff - visa's, insurance, taxation etc. 

 

For example, I've read where people have raised the issue of insurance! the way I see it, its probably worth taking out travel insurance before you leave for a year, whilst you look at options when you are in the Philippines.  The travel insurance will also cover you before you leave in case you have to cancel your ticket or fall sick before you leave.

 

If you are seeking a visa, your best options, and what you need to do before you arrive and how long it takes.

 

Searching the internet and getting your loved one to look into the local housing market, not necessarily the internet based housing market,  I get the feeling the local housing market maybe somewhat cheaper than a place advertised on the net.

 

So for me its about looking at getting retirement advice from my super provider not weeks before I go but 6 months out.   Also its timely to look at the taxation implications, will I be considered to be a tax resident or non tax resident when I move to the Philippines given the bulk of my money in super will be based in Australia, and I may have some money in an Australian bank account so how will the tax office treat that and at what stage of my retirement?  Day 1 or Day 183? or Day 365?  Perhaps if you are Australian and you retired in the last few years you can provide your experience from ATO.

 

And when I say 25 months time, what I actually mean is that after month 25 I can choose to retire anytime after that month, I may hang around for 3 or 4 months if I need to tidy up my affairs.

 

One question, do you sell your house and put it into super???  I'm sure many people have kept their house and it sits empty or maybe its rented out??  I'm sure there are good arguments for and against keeping your house

 

Anyway, we will see what happens with this post.

 

Counting down 25 months to go!!!

Edited May 14, 2015 by Ynot

[Thomas]

I figured those people in a similar situation to myself, not retired and living in the Philippines yet, could post their plans and or the things they must do in order to be ready on day 1 of their retirement ready for the Philippines.

I'm moving as soon as I can for my injury, NOT waiting for my retirement, so the earning part is different.

(I'm exbanding what I can earn from my home country through Internet, to be "sure" earning enough to survive, but not more than a bit, because it's very boring   :)    I'm preparing what I can earn money at in Phils. ("Harvest sharing" is east, but limited by how many trustworthy farmers are found. So I will start some business too. although unclear if it will be profitable or a loss   :mocking:

 

To prepare

/I do much RESEARCH. Beside business it's mainly where to settle and laws to figuere out how to solve things suitable security without becoming to inconvinient or to expensive.

/Concerning VISA I will just start with tourist VISA.  I plan to marry after 6-12 months, so then I can chose a cheaper VISA,

or Balikbayan if my wife want to make a - short cheap  :)   - honeymoon trip abroad.

/Concerning insurance I have only checked a litle, but haven't decided anything yet else than I will have PhilHealth plus something more.

/An other preparing is deciding what to bring and when. (Some important things as laptop and mobile. A litle business equipment. Some clothes, so I know I get long enough trausers   :)   Some amusement things as e g music keyboard, table tennis rackets, chess, canoe... Some hand tools. A few books, but that's later.  Some memory things last.)    I will move them in STEPS with a combination of a FEW balikbayan boxes and bring lagguage every time I go back from visiting my family. So the extra cost will be small, but the move of things will take 5 years or so  :lol:

[Old55]

I love it when guys start a count down and begin making real plans like you are now!  :thumbsup:  :cheersty:

Thomas makes some very good points.

 

I hope one of our many Australian members can answer your tax and retirement questions. I know some have been covered before so a search may help there as well.

 

You are correct the Philippines net based housing prices are for Epats or returning OFW's who have no clue. Many here suggest you just move to Philippines yourself for a year or so and by that time you will have found an area you like and learned more or less what costs are. Don't let family or others "get" a place for you ahead of time. This could go wrong in many ways. 

 

What to do with your home in Oz depends on you. Here in the States we have many company's who will manage a home for an absentee owner renting it out and taking care of all the needs. Its a safe way of doing business but comes at a cost. I would guess you have the same thing there for sure it would be the easy and safe way to go.

 

Please share with us each step you take it would be very useful for others attempting the same thing. :tiphat:

 

 

 

 

 

.

Edited May 14, 2015 by Old55

[chris49]

I've bee thinking about this for sometime, I'm unfortunately not living the dream yet, I must or I suppose I choose to work until I am 60 in 25 months time, mainly for tax reasons.  If I retire now on the superannuation (super)  I have, the government will tax me 30% as my super as it has not yet been taxed.  However, If I wait till I am 60 and then stick my super in a complying super fund, then I only pay tax at 15%, so you can see the incentive not to touch the super before I turn 60. Given I will be relying on my super to live, its best I wait till I am 60 before I do so.  

 

I figured those people in a similar situation to myself, not retired and living in the Philippines yet, could post their plans and or the things they must do in order to be ready on day 1 of their retirement ready for the Philippines. 

 

Those people who have already retired and living in the Philippines can remind us (the newbies) on things that we need to do before we leave, how many months out from leaving you should do certain stuff - visa's, insurance, taxation etc. 

 

For example, I've read where people have raised the issue of insurance! the way I see it, its probably worth taking out travel insurance before you leave for a year, whilst you look at options when you are in the Philippines.  The travel insurance will also cover you before you leave in case you have to cancel your ticket or fall sick before you leave.

 

If you are seeking a visa, your best options, and what you need to do before you arrive and how long it takes.

 

Searching the internet and getting your loved one to look into the local housing market, not necessarily the internet based housing market,  I get the feeling the local housing market maybe somewhat cheaper than a place advertised on the net.

 

So for me its about looking at getting retirement advice from my super provider not weeks before I go but 6 months out.   Also its timely to look at the taxation implications, will I be considered to be a tax resident or non tax resident when I move to the Philippines given the bulk of my money in super will be based in Australia, and I may have some money in an Australian bank account so how will the tax office treat that and at what stage of my retirement?  Day 1 or Day 183? or Day 365?  Perhaps if you are Australian and you retired in the last few years you can provide your experience from ATO.

 

And when I say 25 months time, what I actually mean is that after month 25 I can choose to retire anytime after that month, I may hang around for 3 or 4 months if I need to tidy up my affairs.

 

One question, do you sell your house and put it into super???  I'm sure many people have kept their house and it sits empty or maybe its rented out??  I'm sure there are good arguments for and against keeping your house

 

Anyway, we will see what happens with this post.

 

Counting down 25 months to go!!!

 

Firstly mate as you well know there are tax accountants and plenty of them in Australia. I had a consult long ago when I was running a taxi but had it out on lease.  I got my consult free but that was because  I became a client. A typical Aussie Super Acct for a person like you would be $300-500k AUD.......it is crazy to seek advice on an ex pat forum for that amount. See a tax accountant even a lawyer.

 

Visas, everyone of us had to cope with that, Early warning, get the longest possible on entry eg 6 months for around 14,000 pesos.

 

Commonly on arrival you would check into a hotel. Tell us where you are going and somone will put you onto an Apartelle,,,,one month for my level? 25k pesos but with some discount, air con, wi fi, cable tv, hot water....as far as getting your loved one to do that or research the housingmarket, no I would not do that. The girls would tend to misjudge over or under our needs and although they think they are getting a bargain, in reality you should be here to hash it out, A one week booking in an Apartelle is a good start.

 

Now I add my personal advice. Get as far away from the Metro area, as far as you can as soon as you can. I hung around 6 years and now 3 years in the province , the province is 200% better. Consider the girls home area but dont make any committment until you see it

[Gratefuled]

First of all, Yes, the Philippines is very affordable for retirees. Second, it helps if you are married to a Filipina. The benefits are better than winging it alone. No need to explain since someone will clue you in on these benefits. 

I cannot advise you on your home. I have a home in the US that I lease annually to a military family. It is paid for and will be our home,  (Filipina wife) when she decides to emigrate. 

It is complicated if you want to retire and live as a single man in the Philippines. Immigration will want you to renew your Visa periodically. Permanent residency is very expensive if you are not married to a Filipina. 

There are locations that are better suited for expats and there are those where you should stay away from. Do some research but better yet, come see for yourself.  There is a lot of adjusting to be done financially, medically and culturally.

[mogo51]

Hi Ynot, another Oz here. You have already had some good advice. I have empathy for your regarding financial advisers.

If you will be entitled to an Oz pension or other benefits, Centrelink provide access to a neutral financial

adviser, worth consideration when closer to the time ( a few months out).

Good advice to go and live in your selected location for at least 6 months to see if it is ok with you.

You may be different, but I like to be where there are other expats for friendship and company. Manila is not

my cup of tea but it may be yours.

Living near the gf or wife (and dont rush that deal)( is not good karma!!!

Plenty of research as you have been already advised about, is the key, plenty of good info here. Good luck.

[Jack Peterson]

It is complicated if you want to retire and live as a single man in the Philippines.

 

 

Complicated is one way of putting it, somewhat nerve racking is another.

Having been here for a number of years, married and have just about all the help I can get from one or another in and out of the family,

I am just not sure any of us really would be happy to try and survive totally on our own, Sitting ducks springs to mind and i for one would not attempt it, all to many times we read about foreigners being found dead and it always seems that they were on there own, Even one of the latest ones had a Brother fairly close by and this did not stop his being alone when he died.

Meeting a lady here after you have retired can and has brought it's own problems so i think a lot of Soul Searching has to be done before thinking of Retiring here alone.

 

Of course this is only my opinion, Unless you have a very big nest egg there are to more safer places to be  and again for  for many reasons not to be here.

 

As usual, I am not trying to be negative but all things have to be weighed up.  :thumbsup:

 

JP :tiphat:

[Crocodile]

So for me its about looking at getting retirement advice from my super provider not weeks before I go but 6 months out.   Also its timely to look at the taxation implications, will I be considered to be a tax resident or non tax resident when I move to the Philippines given the bulk of my money in super will be based in Australia, and I may have some money in an Australian bank account so how will the tax office treat that and at what stage of my retirement?  Day 1 or Day 183? or Day 365?  Perhaps if you are Australian and you retired in the last few years you can provide your experience from ATO.

 

You need to get retirement advice now!  Not six months before you retire.  You possibly should be putting alot extra into your super for the next few years before you retire.  There are annual limits on what you can put into your super and it may be to your benefit to maximise this before 30 June.  Everyone is different, that is why you should not take financial advice from a internet forum, but I can say that waiting until six months before you retire to get advice is the wrong thing to do. You need specialist advice, not just a person from your super provider who answers questions over the phone.

 

For Australians, being an Australian resident for tax purposes will vary depending on circumstances.  It probably sounds like that you will stay an Australian resident for tax purposes if you have your super, a house, investments and bank accounts in Australia.  You will have to fill out tax returns, pay tax, etc.  On the upside, you will get Medicare if you come back for treatment.  Again, see a tax adviser now (possibly the same person as you see for your retirement) to work out if you need to structure things a little differently.  Staying an Australian resident for tax purposes will save you dealing with the Philippines equivalent and keeping all of your money in Australia definitely has its advantages.

 

With regards to your house, that will depend on your personal circumstances, where the house is and what your long term plan is.  Also will depend on how much is in your super and what monthly amount will go into your bank from your super and how much you need to live each month in the Philippines.  A regular weekly income from rent may be very advantageous. Selling it means you will want to (need to?) put it into your superfund or invest it to gain income, which is a whole set of new problems.

 

(Source:  Am an Australian, work in finance/accounting, have lived in Asia as an expat and am looking at moving to the Philippines for an extended period for semi-retirement.  Please don't blindly believe anything I have said - you are doing the right thing: Ask people, get views, opinions and seek professional advice then decide for yourself.)

[Ynot]

Thanks guys for the heads up, I will definitely seek financial advice and I appreciate the other pearls of wisdom, in case I didn't make it clear earlier on, I have a gf in the Philippines who lives in Cebu and we have been together for 3 years hence the reason for my 6 monthly trips and my extended trip in April 2016.  She is a diamond, very rare, independent and works hard and has never asked for a handout, she has some savings in her account and knows what it is like to be on your own looking after yourself so she is not foolish with money and appreciates that you must work hard for your money.  I will keep you updated as I start my countdown, 25 months and counting

[bows00]

Does you girlfriend have a sister?