China Daily

With negative news about the country more likely to­ reach foreign shores than positive ones, the Philippines may not seem like an obvious retirement destination for Westerners, particu­larly when compared with the likes of balmy Bali, or Malaysia with its world­class health care.

But tens of thousands of foreign­ers have, in fact, chosen to retire in the Philippines, permanently or otherwise. Many of them have had some prior experience of the coun­try, either through work or visiting on vacation in the past.

As of September, net enrollment with the Philippine Retirement Au­thority (PRA) for Special Resident Retiree Visas totaled over 23,000 for foreign retirees and their depen­dents. Four visa types are currently available from the PRA, all appli­cable to those who are 35 years old or older.

Foreigners between 35 and 49 years old can apply for a retiree visa if they can deposit a cash guarantee of at least $50,000 with a PRA­ desig­nated bank, show proof of monthly pension remitted to the Philippinesof $1,000 (for married couples), pay
an additional deposit of $15,000 for every dependent in excess of two, and settle all application fees and the PRA annual fee of $60.

Part of the cash guarantee or deposit may eventually be converted into investments in condominium units, which foreigners can own in the Philippines, or in the longterm lease of a house and lot. Other investment options include golf club shares,
house construction, leasehold rights, government issued bonds and shares of stocks.

Those who are 35 years old and older, and can afford only a smaller cash guarantee of not more than $20,000, can still apply for a retiree visa. But the guarantee or deposit cannot be converted into any investment, and can be withdrawn only if the visa is canceled.

The same resident retiree visa privilege is accorded to former Filipino citizens who are 35 years old and older, and foreigners who are 50 years old and older who had worked for international organizations or the diplomatic service in the country. And this is for a token visa deposit of $1,500.

Ailing retirees with preexisting conditions and in need of medical care services can also apply for a resident retiree visa, in exchange for a cash deposit of $10,000 and proof of monthly pension remitted to the Philippines equal to at least $1,500.

15th place

In 2013 the Philippines ranked 15th in the Annual Retirement Index by International Living magazine. But it was third in Southeast Asia, following only Malaysia and Thailand. The Philippines ranked high in terms of cost of living, ease of integration, retirement infrastructure and health care, but it needs improvement in the area of "special benefits" for retirees.

To date, over 30 percent of Philippine resident retiree visa applicants are from the Chinese mainland, 22 percent from South Korea, almost 12 percent from Taiwan, and almost 9 percent from Japan, PRA General Manager Veredigno Atienza tells China Daily Asia Weekly. About 5 percent are from North America and 3 percent from Hong Kong, he says.

According to Atienza, the majority of foreign retirees opt for the scheme that requires nothing more than a $20,000 visa deposit, which is intended for "end of term obligations" or visa holders who are 35 years old or older. Proof of monthly pension remittance is not even necessary, but the visa deposit cannot be converted into investment and can be withdrawn only after visa cancellation.

Atienza says the Philippine retirement visa scheme is the most "cost beneficial" in Southeast Asia and allows foreign retirees to travel to and from the Philippines anytime. It also gives them the option to retire permanently in the country with the privilege to "reside, work and study" in the Philippines.

Foreign resident retirees can also open a bank account, secure a bank loan and enjoy fewer restrictions with respect to international financial transactions.

Atienza explains that there are a number of reasons the Philippines is attractive to foreign retirees. Its warm climate is an obvious draw, especially for those from the colder parts of Europe and North America. But it also boasts relatively low costs, particularly for housing, food and living assistance; and many Filipinos can understand and speak English, which makes communication much easier than in some other countries in the region.

But the key to a final decision on whether to retire in the Philippines or not is a foreigner's prior "experience" with the country, says the Retirement and Healthcare Coalition (RHC), a nonprofit organization formed in 2007 by the European, American, Japanese and South Korean chambers of commerce in the Philippines to promote retirement and health care in the country.
"Experience with the country before" is a major deciding point for foreign retirees, and this is invariably tied in with tourism, says Marc Daubenbuechel, RHC executive director. "Test-living" prior to retirement is important, he says, as well as confidence in the quality of a host country's healthcare services.

"Why will I decide to live somewhere where I have not yet lived? I have to live there first," adds Henry Schumacher, vice president for external affairs of the European Chamber of Commerce of the Philippines and RHC chairman.

Visa extension

And this is precisely the reason RHC pushed for the Long Stay Visitor Visa Extension, or LSVVE, which became available in June. Daubenbuechel tells China Daily Asia Weekly that with the new visa extension privilege, tourist-visa holders can apply renewal every six months, instead of every 59 days, three times or for a total of 18 months.

According to the RHC, this gives medical travejers and seniors -- especially "winter birds" -- the opportunity to experience the Philippines with fewer bureaucratic concerns, and to test-living in some of the different regions in the country. This is with the aim of convincing the silver tourists of today to retire in the Philippines later on.

While the Philippines seems still a long way from becoming an ideal retirement site for foreigners, Schumacher remains optimistic of its prospects, citing the country's "people factor," as well as its culture.

"Filipinos, have no problems in dealing with old people. And I don't see that in the other countries with aging populations," he says. Respect for the aged, he adds, "benefits [medical] patients and benefits retirees" who stay in the Philippines.

Schumacher also says that, for people looking at permanent retirement abroad, the main concerns are whether or not the target destination fits their lifestyle, if they can locate a community that suits them, and whether or not health care for the elderly is available and how much it will cost.

Of these concerns, the Philippines is still behind with respect to the wide availability of completely developed and fully integrated retirement communities where foreign retirees can rent for life. But both the PRA and RHC are now working on this.

Schumacher says "continuous care retirement communities" are now being contemplated, and some groups from California are studying this. As for the PRA, it cites a number of ongoing projects that will offer assisted living and care services in Cebu and Davao, as well as existing retirement facilities and nursing homes in Laguna and Subic.

Both Schumacher and Daubenbuechel also note a significant upside for the Philippines if the country seriously considers proactive initiatives to host foreign retirees and in promoting investments in retirement services and communities.

If the industry booms, they say, it will generate employment even for many overseas Filipino workers now servicing retirees abroad.

"If this industry is to click, then think about the millions of Filipinos out there who can come back and become entrepreneurs and provide services to this industry. This, to me, is a big factor," Schumacher says.

Asia News NetworkMCT

Source: Business Mirror; Special Feature; 06 January 2014