Some of you will have planned your retirement here well ahead of the time you actually set foot on Philippines soil. Some may arrive here on a whim. I understand that, as I would say I tend toward impulsiveness. However even I researched retirement to the Philippines fairly extensively before I booked the flight and said goodbye to the UK once and for all. One of the sources that definitely helped me was this RTTP site and the guys who run it, Gary and Steve. I am told, and sworn to secrecy, that Gary is the American who likes to do all the writing and talking while Steve is the unassuming Brit in the back office who makes sure everything works! Only joking Gary! However I decided to write this as encouragement to all of you who could do with that something extra in the ‘pay packet’.
Modest Retirement Income
I believe I am fairly typical of many expats. I chose to retire here for a number of reasons. One of them that was paramount is that it is a hell of a lot cheaper to live here than in the UK. And for UK you can substitute any western country whether it is the United States, Canada, Australia or any western European country. I think I am also typical in that my retirement income is modest. It was a struggle to make ends meet in my retirement back in the old country. Britain had a politician who proclaimed many years ago “never get old in Britain” meaning that you will become impoverished and scared of turning on the heating on a cold, damp winter’s day. That forecast has become a fact and one of the reasons I left Blighty for good.
I know some of you may think that doesn’t apply to you as you provided wonderfully well for your retirement years. Well good on you! No, I mean it. There is no sarcasm intended I can assure you. I met a guy in Thailand about 2 years ago (I tried that country as an expat – not for me!) and got chatting over a beer. It turned out that we actually knew each other from two entirely different work environments. He was an ex Detective Chief Inspector in a British police force. I was an ex Detective Sergeant from a different force but it turned out that we had worked on joint operations together and rattled off several names that we both knew. Furthermore when he retired from the police he worked as an investigator for the Civil Aviation Authority (CAA) in London – the equivalent of the American FAA. By then I was a barrister (trial attorney) in London and had several cases prosecuting for the CAA – low flying aircraft, passenger air rage as well as minor regulatory offences. We had also met then but only realized it when we got talking over a beer. So what’s the point of my little ramble? He is an example of the sort of retiree who has no need ever to think about supplementing his retirement income. I am not jealous of him. We took different career options and my choices were to the detriment of my pension pot. However irrespective of whether you fall into the category of a former government employee, like the guy in Thailand, accumulating worthwhile pension benefits; or you are more like me with modest pension income, then let me give you this advice: whether you need the money or not, for your health’s sake find something to do in your retirement. Find some work, paid or unpaid, a hobby or activity – but do something! It will keep your mind and body active – perhaps in my case we can forget the bit about the body!
Returning to Gary and RTTP – I found some of his thoughts and ideas on ways of making money here in the Philippines very informative. Most of them revolve around agriculture and/or livestock. But that’s not for everyone although I do have a plan to do a little modest pig farming some time in the future. Lechon and pork feature regularly here in the diet and menus, so I know there is a demand for pork products! I found some solid advice was to be found here on this site. Like most of you I stumbled upon other sites when researching my retirement here and was not fooled by the hype on some of them. You know the sort of thing I mean – 101 ways to make a living in the Philippines and never getting of your big fat ass!
Remote Freelancing
My own way of coming up with a method of earning extra cash was to think it through and talk to people. Internet research also played a part but talking to real people was the key for me. And by people I mean both expats and Filipino. It was through talking to my Filipina partner’s family and friends that I started to think about remote freelancing. Remote freelancing is working from a computer instead of going into the office. The person or company who hires you can be, and often is, many thousands of miles distant. Some of the freelancing skills that are in demand include writing, translation, graphic design and computer programming. Those are just examples as I am sure there are countless others. I believed I could find work as a writer. It was a love of mine many years ago at school and indeed I had once harbored an ambition to become a journalist.
Practice Makes Perfect
So once settled in Bacolod I started up my own blog web site at expatinbacolod.com primarily to find a writing identity and practice writing on a regular basis. Like any other skill ‘practice makes perfect'. Or as Gary Player once famously said to a reporter remarking on Player making a ‘lucky shot' in a major tournament, “It’s funny you know. The more I practice the luckier I get”. I hasten to point out that my web site is very unlike here on RTTP – that must be so otherwise I doubt I would have been invited to write this article!
Indians, Pakistanis and Filipinos
Almost simultaneously as starting to write my blogs I registered with an online hiring hub. These companies all operate on the same principle – you are looking for work and employers advertise for people with a certain set of skills. It took some time to get off the ground and be offered paid work. This was partly through my own fault, for example my covering letter was a bit shabby when I first started to apply for jobs. In addition you have to realize that many would be hirers are looking for the lowest rates of pay and often employ Indians, Pakistanis and Filipinos who will work for ridiculously low (by western standards) rates of pay. I learned to stay away from those kinds of jobs because there are people out there who will hire you as a native born English speaker and pay reasonable remuneration for your writing skills.
US$$’s and PayPal
The work started to roll in on a regular basis. A trickle to start with, then consistent work on a daily basis. I was writing product reviews (I am now an expert on battery jump starters!) and rewriting news content that was obviously going to appear on a blog somewhere in the world. I say ‘news content’ but it included some really oddball stories such as a wizard who had been banished from a wildlife park in New Zealand because he had been upsetting the gorillas! It was different. It was fun. I was seeing US$$’s appear in my PayPal account! Eventually I was hired to write some really interesting stuff and the accompanying research also harnesses my previous experiences as a detective and that is ongoing as I write this piece. Long may it last.
Clearly writing is not for everyone. All writers need readers. If you have ever written a half decent Trip Advisor review then maybe you ought to think about it as just one viable way of supplementing your income in retirement. If you do then I warmly wish you ‘Good Luck’ and maybe see you on a bestsellers list one day?
Thank you for an instructive and well written piece, Stephen. I am fast approaching my own move to the Philippines to continue my retirement there. Gary’s numerous very informed articles have, more than any other source, helped convince me to proceed with my plans. Prior to stumbling on to this erstwhile site, I had contemplated retirement in countries spanning 3 continents: Africa, Latin America and Asia. Needless to say, after extensive research, the Philippines (and I) came out winners hands down.. Not unlike yourself, the decision was partly resolute based on available facts and partly driven by impulse, very much a part of my nature. But on the subject at hand, although I indulge in oil painting as a hobby and do a modestly decent job of it, writing remains one of my as yet untapped potentials. Once settled, I will vigorously pursue the leads you suggest here. I have also toyed with the idea of returning to academia (I am a retired academic and bio-medical research scientist) in the Philippines, but the rigors and demands of research and academia may put paid to the notion of a stress free retirement life. Given the same reasons for retirement away from our countries (I live in Florida) that you outline, namely to supplement my modest retirement income, I would be perfectly content to generate modest revenues to help afford a comfortable lifestyle. Meanwhile, I will be visiting your own blog and look forward to learning more on how to make my retirement in the Philippines more fulfilling and rewarding.
Alvin thank you for your kind words and your own insights. I look forward to seeing you on my own blog.
Thank you, Stephen. Very inspiring! I just turned 55 yesterday. Still a long way towards pension age (67). But I’ll have long service leave from June 2016 and transition to retirement from December 2016. (The TTR means I can draw up to 10 per cent of my preserved retirement fund annually.) Before I migrated to Australia in 1987, I worked in Human Resources of a private company in Makati, as well as part-time lecturer in Industrial Psychology in college and university. Now I am thinking of semi-retiring in the Philippines, teach again, finish graduate studies, while income is augmented by TTR. Is this realistic? Thank you again.
Coming to the Philippines has been on the back burner for me some years now.My Filipina wife and I liive and work in NZ but the dream to move there permanant is fast approaching as i retire officailly in Feb this coming year.
I have done much research in moving across and believe when i arrive i have many skills to offer my new family and also perhaps also earn an extra few pesos or dollars to supplement the income.
Mine is minimal although i have enough saved to build a house,buy a 4×4 etc…
Your article on writing could also be a way of earning as well as i enjoy doing so and readin etc… all good for the mind.
Its interesting to read what others are doing even if its not what one may do oneself as it gives an insight into the options that are available to all of us anywhere and at anytime…..
Graeme
Hi
I read your article with interest. I am already living here in the Philippines which is just fantastic. Beautiful place to live and plenty to do. I have one concern though which you may have experienced and that is how the NZ Pension applies to NZers living outside of NZ.
Have you been down this road yet Would be interested in hearing from you.
Rgds
Gordon
Hi Gordon, my wife and I are both New Zealanders, both retirees and both receiving a joint NZ/Australian pension. It’s a long story, but to remain on the pension (administered from Australia) we need to set foot in Australia (even just overnight) before being o/s for 26 weeks – coincidentally, our 26 weeks is up on April Fool’s Day next year. I’ve been told by the Australian pension people that if we remain away for more than the 26 weeks the Australian pension stops but the Kiwis kick in with a whole pension. Sadly, I’ve been told by the New Zealand pension people that if we’re absent from either country for more than the 26 weeks, the Kiwi pension stops. So we’re a little but in limbo, but heck, we’re here in Tandayag (Amlan, 20km north of Dumaguete) living in a house right on the beach, so who cares… But we will sort things out.
Hi Gordon,
I have lived off and on in the Philippines for two years. I am New-Zealander. It is true that the N.Z. pension will stop being paid to a person after they have been out of N.Z. for more than 26 weeks, but there is a way around that. If the pensioner has not told The N.Z. Dept of Social Development (Winz) that they are going to be out of the country for more than 6 months then the pension will stop after 6 months.
However if the pensioner applies to International Services Branch of M.S.D. in Wellington City before they leave N.Z. and tell them the pensioner will be leaving N.Z. permanently, then the N.Z. pension will continue to be paid past the 6 months and forever.
The pensioner will be paid a pension depending upon how many months he has lived in N.Z between the ages of 20 and 65 years old. i.e. If the guy has lived 35 years in N.Z. between age 20 and age 65 then he will receive 420/540 of the full N.Z pension while he is living overseas.
. If he has lived all of the 540 months up to age 65 in NZ then he will receive the full N.Z. pension when he is living overseas.
The pensioner must regularly complete the “Drop Dead” letter from N.Z Ministry of Social development, and mail it back to them regularly to prove he is still alive to collect his pension in Philippines. The pension will be paid once a month into his Philippines Bank account, Tax-free.
Peter Harding
Peter – Thanks for the detailed information. It will help our RTTP readers from NZ immensely I’m sure.
Steve
Always good to see your site. Can’t wait till I retire in 2016. Have a nice 600sqmt lot already paid for. Ready to build.
Hi understand the NZ pension deal but how does it work in Australia ??
Thank you for your interesting article Steve.
What interests me is how you get permission to work on a self-employed basis in the Philippines without having to set up a company that has a 60% local ownership. I’m talking to the PRA but it’s a slow process.
Robert,
I hope things are going well with the PRA. Permit me to eventually answer your question with a hypothesis. But, first I would say this – a writer does not require permission to write no matter where he is located.
If that writer was to profit from his endeavors then he would be liable to tax on earned income. Invariably, he would pay any tax liability to the country of his citizenship and usually that is the place where his bank is located. He would therefore nominate the country of his bank and citizenship as the domain for his tax liability. For example, that’s how it works with Amazon and similar publishing platforms. Before you can be paid any royalties, Amazon requires a writer/publisher to complete an IRS form whether or not the writer is a US citizen. In the event that writer is a non-US citizen, he/she would supply the tax reference /identification number of his/her own country.
If things were otherwise it would result in sheer folly. Imagine an author writing a book on vacation in a country where he required a visa to visit – he needs neither permission to “work” or is it a requirement to pay taxes to that country on the book’s revenue stream. Likewise, if it was a journalist on vacation electronically filing copy to his newspaper. I think you get the picture!
The position you posit is different. I take it you are talking about self-employment in the Philippines as a business owner. If that is the case then you need the necessary permissions and appropriate visa. As a rule of thumb, if a business here is of the “bricks and mortar” type or it has tangible assets here, then it falls under the requirements to have proper permissions issued by the relevant authority in the Philippines. I am also led to believe that if your business is not physically located here and the revenues are not generated from within the Philippines then (a) you require no permissions and (b) you would not be liable to pay taxes here.
You will see from my bio that I was a lawyer in the UK. I no longer hold myself out as a practicing lawyer. In plain language, that means the advice I have given is my non-lawyer opinion. I always urge anyone to seek professional legal advice if and when necessary.
Thank you Steve.
I got the initials wrong. It was the PRC I was dealing with not the PRA 🙂
In the end they referred me to the DTI who told me that to set up business on my own I would need a minimum capital of $250,000 and can go much more for certain types of operation alternatively of course a 60% Philippine owner.
I’m still headed your way and we will see which option I have to choose.
Robert
Stephen, thanks for the informative article. I fully concur with everything that was written by yourself. I am retired U.S. Air Force and retired Civil Service. I was married for a long time to my former (now deceased South Korean-American Spouse, who passed away from Ovarian Cancer in 2006. It was our dream to move back to Seoul, South Korea to enjoy our retirement years. However, her dying wish was for me to move on and find someone else to enjoy life with. As unbelievable as it may sound, I found a Philippine-American Lady (also widowed and born in the same year (1954) as my former spouse. After several years of dating, we were married in the U.S. She continued working as an RN and I in Customer Service. In time, we decided to move back to the Philippines and returned in 2012 to start building a Western Style Home outside the Town of Clarin, north of Ozamiz City, Mindanao. It took us 6-months to have our 120-square meter / 1,292-square foot home built for us (large by Philippine Standards) on an exceptionally large lot (a former rice field 0 1,771-square meters / 19,063-square feet that was owned by my wife’s cousin, who needed the money for medical expenses for his wife.. He sold the property to us for a very cheap price. We returned back to the U.S. to close out our personal affairs and sold our home in Sacramento, CA and, moved back here to the Philippines, exactly 1-month to the day that we had departed a year earlier. We are content now, as we have been doing what you described in your article, raising Chickens, cows, goats, pigs and Tilapia (Fish). We also grow numerous fruits and vegetables and, have taken over a farm that was once utitlized by her parents (now deceased as well). I also do a lot of writing in my spare time, as I am a former Air Force Administrator. I am the Quartermaster of a group of Military Retirees that have decided to make the Philippines their new home once, they too are ready for retirement and, write informative articles for many of the readers to better prepare them for their permanent move back to the Philippines. I also write travel blogs on “Trip Advisor” as well. Many of the people that I come in contact with, I tell them that “RETIREMENT” is just a word. The whole idea to being “RETIRED” is to stay busy and, be content with whatever you have chosen for the remaining part of your life. In addition to what I have mentioned, I also work on JigSaw Puzzles on-line and decided that I wanted to keep my mind active, versus resulting in Dementia or, Alzheimer’s Disease. There is a JigSaw Puzzle Website on-line, whereby I do at least 3- or more a day.
Stephen,
I have a Canadian friend who would like to permanently retire in Phil. Any ideas on the Canadian Old Age Pension, if it is cut off, if he stays more than the 6 months? Just wondering if you know any Retired Canadians there?