Retiring

[fillipino_wannabe]

I'm 29, been retired since 27. Winning at life lol. Have 2 small businesses in the UK that I keep below the Vat threshold, they make about 3.5k pounds profit per month after tax after paying someone to manage them for me. They'd probably make 7-8k after tax if I pushed it but I'd have to work about 60 hours per week to do that instead of 30 minutes per week, no thanks.

Have a few businesses here aswell (or my wife does) that do alright but I wouldn't be bothered too much if they all shut down. I think the reason people start businesses here is that it's so much cheaper to try out. Want to start a restraunt here and you can do it for 200k pesos, start one in the UK and you'd do well to keep it below 4 million pesos. Also it's much easier other than the potential government or wife robbing you problems. Filipinos (generally) aren't good businessmen.

Without kids you can have a very nice life here on 100k pesos, me and my wife only spend about 70-80k and that's with 20k rent.

Edited March 23, 2019 by fillipino_wannabe

[Snowy79]

Another option is to the flexibility to move to a cheaper area. I'm currently living a lifestyle that's comfortable, eating out, travelling a little for between 80k and 100k peso per month.  

I can move 10km and reduce my expences by a good 10k peso as I currently live in an area that's popular with tourists and Westerners.  A short 20 minute drive and rents alone are 10k less and groceries considerably cheaper. 

[Rayj]

My new found days in retirement far outshine each 9-5 drudgery I was putting up with just to eke out a few more dollar$. My 1 year early jump is paying dividends in quality of life. The dollar$ won’t be missed in the end, time is more precious than money.

[Jack Peterson]

12 minutes ago, Rayj said:

The dollar$ won’t be missed in the end, time is more precious than money.

Ah! now that! is something We have all been trying to explain to Steve for OH! I forget how Looooooong 

[stevewool]

19 minutes ago, Jack Peterson said:

Ah! now that! is something We have all been trying to explain to Steve for OH! I forget how Looooooong 

Just another few more times before I can say ‘ you was all right ‘

[graham59]

GOOD HEALTH, and paying for it, needs to be your main consideration... coming from freebie UK to PAY PAY PAY Philippines. 

You won't be starving to death in this place, or dying of cold, that's for sure. 

[Joey G]

lot's of good sage advice here.  one thing I learned after retiring was that it was not as I thought it would be... it's been good (actually better than expected), but also different than expected.  I'm guessing the same would be if we retire full time in the PI.... different than we expect... but the open question is... will it still be as good or better than expected... that seems like a bigger risk than the financial part.

with respect to the financial part... living by a budget for 20 years makes forecasting a lot easier... separating "wants" from "needs" is key.

[JJReyes]

8 hours ago, boyee said:

12 hours ago, JJReyes said:

80% of your annual income during your last three years of employment(average). The assumption is less expenses because the children are grown-up and financially independent. Your 30 years mortgage is assumed to have been paid off by this time. You are now 65 years old and qualified to receive Medicare after 40 quarters of contributions. The two problems in making projections are "rate of inflation" and "life expectancy."

This would be a very good gauge if you remain in the same area that you worked in.  80% makes sense because the cost of living does not change.  But I thought moving to the Philippines changes that cost of living i.e. you wouldn't need to save the same amount?  

50% is my estimate if you relocated to a lower cost of living country.  One additional expense might be air travel to your home country on an annual or bi-annual basis.  You need to be careful about deceptive presumptions like, "With $1,000 a month, in the Philippines, you can live like a king."  That's a good amount for a typical Filipino family, but it won't be at the standard of living you have become accustomed.  Likewise, there is a huge difference between living in Metro Manila or Metro Cebu and in one of the provinces.  

[JJReyes]

1 hour ago, graham59 said:

GOOD HEALTH, and paying for it, needs to be your main consideration... coming from freebie UK to PAY PAY PAY Philippines. 

You won't be starving to death in this place, or dying of cold, that's for sure. 

I am not sure how the United Kingdom's healthcare program is funded, but the money must come from somewhere.  In the United States, you have to contribute 40 quarters (10 years) to qualify for Medicare A.  The main benefit is 80/20 copay for hospitalization.  This means if your surgery and stay costs $100,000, you pay $20,000.  Medicare B is additional at around $110 per month.  Again, this is 80/20 copay program and the first $180 per year (approximate) is charged to you.  Medicare B covers for visits to doctors and urgent care facilities.  To avoid the copay, there is supplemental insurance at around $125 per month.  Prescription medication, vision,  dental, etc. is not included.  My supplemental insurance provider pays for emergency overseas medical expenses at 70/30 copay.  

 

Moving to the Philippines, the strategy would be to stop paying for Medicare B and supplemental insurance.  The money "saved" which will be $5,000 to $6,000 per year for the two of us would be deposited in a special account.  This should be sufficient to pay Philippine medical costs.  

 

The US policy previously was to keep you alive regardless of costs.  Of course, the hospital's accounting department has already verified your insurance coverage or that you have significant assets.  It is a business after all.  Now, you can have a living will and certain information as part of your drivers license.  One of them is DO NOT RESUSITATE in the event the projected outcome is poor such as remaining in a vegetative state kept alive by machines.

 

[fillipino_wannabe]

5 minutes ago, JJReyes said:

I am not sure how the United Kingdom's healthcare program is funded, but the money must come from somewhere.  In the United States, you have to contribute 40 quarters (10 years) to qualify for Medicare A.  The main benefit is 80/20 copay for hospitalization.  This means if your surgery and stay costs $100,000, you pay $20,000.  Medicare B is additional at around $110 per month.  Again, this is 80/20 copay program and the first $180 per year (approximate) is charged to you.  Medicare B covers for visits to doctors and urgent care facilities.  To avoid the copay, there is supplemental insurance at around $125 per month.  Prescription medication, vision,  dental, etc. is not included.  My supplemental insurance provider pays for emergency overseas medical expenses at 70/30 copay.  

 

Moving to the Philippines, the strategy would be to stop paying for Medicare B and supplemental insurance.  The money "saved" which will be $5,000 to $6,000 per year for the two of us would be deposited in a special account.  This should be sufficient to pay Philippine medical costs.  

 

The US policy previously was to keep you alive regardless of costs.  Of course, the hospital's accounting department has already verified your insurance coverage or that you have significant assets.  It is a business after all.  Now, you can have a living will and certain information as part of your drivers license.  One of them is DO NOT RESUSITATE in the event the projected outcome is poor such as remaining in a vegetative state kept alive by machines.

 

It's free in the UK, even the dentist is subsidized, comes from taxes.