Its borders are Taiwan to the north, the Pacific Ocean to the east, Indonesia and Malaysian Borneo to the south, and the South China Sea to the west. A large expat community enjoys everything the country is known for – beaches, beautiful scenery, tropical climate and friendly locals – plus affordable healthcare and a low cost of living. Other perks: The Philippines extends a number of incentives to expat residents, including discounts for the 60+ crowd and the duty-free import of household goods.
No matter how much you have saved for retirement, you may be able to live better – and make your money stretch further – if you retire abroad. (see Retirement: U.S. Vs. Abroad). Here, we take a quick look to see if it’s possible to retire in the Philippines with $200,000 in savings.
Each year, International Living’s Global Retirement Index ranks retirement destinations around the world, measuring factors such as climate, healthcare, benefits and discounts, and cost of living. For the 2017 Index, the Philippines scored 85 out of 100 for cost of living.
International Living also shows that most expats can live comfortably in the Philippines for about $800 to $1,200 a month. Some basic math shows that if you live on $800 per month – probably the lowest amount for which most retirees could live comfortably – your $200,000 savings account would last about 21 years ($200,000 ÷ $800 = 250 months, or 20.8 years); live on $1,200 a month and your savings would last 14 years ($200,000 ÷ $1,200 = 166.66 months, or almost 13.9 years). This is, of course, a basic example that assumes your monthly expenses stay exactly the same over the years, and that you have no other income or expenses (e.g., tax liabilities) during retirement.
reference: Jean Folger, Investopedia, Read more at: