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Wonderer

Future retirement income for expats under age 50

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Wonderer

I have seen postings from expats under the age of 50 who are residing in the Philippines and making a living either running a business or internet income. Since you are in the Philippines you aren't contributing to any government retirement program (ie: social security) and thus will either receive no Social Security Check in your retirement years or a reduced one. This isn't a topic about whether the Social Security System will be bankrupt or whether you can count on a check in the future. I am more interested in hearing about how expats are making it in their retirement years without relying on traditional pension income.

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thebob

I don't know about the US but most UK expats pay the minimum self employed contribution of the National Insurance scheme. This at least will entitle them to benefits when the time comes, however meager they may be.

 

Seeing as how there are so few jobs around at the moment anyway, and most of those don't have pension schemes, there doesn't seem to be much more peril than staying at home.

 

I have considered becoming a professional tongit player or having my own cock fighting stable :biggrin_01:

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Cipro

It's been an exceptionally good year, but so far in 2009 I've ade enough on the stock market to live in the PI for 3-4 years. Obviously that is rolled right back into investments but I intend to fund my life from there if my business endeavors are not sufficient.

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PiRider

WOW that's a loaded question, For example I am under 45, but have external income sources, for example rental properties in USA, Since that is considered income, I still pay into the federal income and socialsecurity. A lot of people get confused that I still pay tax because I live outside the USA for more than 11 months of the year. The law states, income earned on foreign soil up to some figure like 80G's. In addition I receive franchise payments and out of the I have deducted my contributions to Social security and FICA.

I am a Veteran of the First Gulf war, but seen enough and got out just after I got home. So I see nothing from that.

 

Almost a mute point is I have a business here in Pi but I consder that more like charity to the Philippines.

 

Your user name is retired Navy , so that's a source for you ? correct

 

as for the stock market, I wish I knew more, so I stay away. To me its like gambling in Vegas, they don't build those big giant expensive lavish hotels to give money away. I gamble with my life, but not my money.

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Chaz

I have seen postings from expats under the age of 50 who are residing in the Philippines and making a living either running a business or internet income. Since you are in the Philippines you aren't contributing to any government retirement program (ie: social security) and thus will either receive no Social Security Check in your retirement years or a reduced one. This isn't a topic about whether the Social Security System will be bankrupt or whether you can count on a check in the future. I am more interested in hearing about how expats are making it in their retirement years without relying on traditional pension income.

 

I'm over 50 (57), but I guess in the same situation applies as in the UK we don't qualify for state pension until 65, so I consider myself semi retired, I am still technically a visitor here and pay UK tax and national insurance, but right now my income comes from 3 non state pensions and gives enough to live on in reasonable

comfort here.

 

But I worked in the offshore oil industry until last November when the financial and oil price crash came,

right now jobs are difficult to find but someday in the not to distant future that should change, so I do

expect at some point in the future to work again, but that work will be outside the Philippines.

 

From what I have seen its very difficult (but not impossible) to make a good living here in the Philippines

and stay within the laws (or without taking risks), so for now I concentrate on budget controls and the big

advantage of living here to me is I can live here on my current income in what I consider a pleasant place

at much lower cost than the UK, while I ride out the current world financial crisis.

Edited by Chaz

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bikerdave

I operate a resort/bar/restaurant/scuba diving center........have been for years im under 45 it works for me! I will never expect an ss check anyhow

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Cipro

I operate a resort/bar/restaurant/scuba diving center........have been for years im under 45 it works for me! I will never expect an ss check anyhow

 

Isn't that a very risky business? I've heard a failure rate of over 80% quoted.

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bikerdave

Isn't that a very risky business? I've heard a failure rate of over 80% quoted.

seems so. Guess I just got lucky but its a lot of work 24/7 cant depend on most locals for this kinda thing. we been here 7 years for the resort and 15 on the diving school.It's enough to live on most months and it's put my wife through college. 2 degrees in education and almost done with her nursing degee (NOW YOU KNOW MY RETIREMENT PLAN HEHE)

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PiRider

Isn't that a very risky business? I've heard a failure rate of over 80% quoted.

 

What business in the Philippines isn't?

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Paul
Isn't that a very risky business? I've heard a failure rate of over 80% quoted.

 

Try his food and then decide if you think he will fail. He has some killer dishes there. Here is one.

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DeezNuz

I've been thinking aout starting a fast food restaurant here in Cebu...I'm just afraid of "eating" all the profits.

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Cipro

Try his food and then decide if you think he will fail. He has some killer dishes there. Here is one.

 

I'm not saying that, I'm just saying that I've been told that starting a restaurant, particularly for someone without hospitality experience, is extremely risky. On the other hand, someone has to be the 20% as well, right?

 

I wonder what a Jollibee or other franchise costs in the PI?

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David_LivinginTalisay

I have seen postings from expats under the age of 50 who are residing in the Philippines and making a living either running a business or internet income. Since you are in the Philippines you aren't contributing to any government retirement program (ie: social security) and thus will either receive no Social Security Check in your retirement years or a reduced one. This isn't a topic about whether the Social Security System will be bankrupt or whether you can count on a check in the future. I am more interested in hearing about how expats are making it in their retirement years without relying on traditional pension income.

 

 

I came to Cebu, Philippines on 1st May 2001.

 

The Job I had as Engineering Manager, Asia Pacific, working for an American Company, Netrix International, had come to an end in 2000, when they closed their Hong Kong Office down to save costs when Share Price of Telecom related Stocks, dropped 90%! What they should have done is close some of their USA Offices and expand into China, but that is another story and they went bust, because they didn't. I did have another job, as my Boss got together with his ex-boss and they formed a start-up company. Anyway to cut it short, that new company had problems as the Telecom recession bit deeper and I was on half Salary for over 6 months, then given the chance to relocate, so I choose CEBU.

 

Was getting paid US$1,000pm 'retainer' to start with, plus expenses, and increased Sales Commission Bonus.

 

Because a Project by Broadband Philippines, for Wireless Broadband to a number of buildings in Makati Area, and internal High-Speed distribution throughout the building, never got awarded to any of the 11 'bidders' (8 of whom were using our clients solution, for in-building distribution of Broadband Internet), I was out of a Job in 2003 at age 48, and living in the Philippines.

 

Whilst ones savings goes a lot further, here in the Philippines, than it would in the UK, USA and many other places, one still needs some income to live off.

 

If you already have a house to live in, so not paying any rent, you can get by on surprisingly little (as evidenced my Millions of Filipinos every day).

 

This is what I did, to live here, with no Job:-

 

  1. Cash in the Bonus awards of my Friends Provident with profits Life assurance Polices and convert to 'Paid up' so no more premium/investment payments and accept the reduced life cover as a result.
  2. Convert to Peso when Exchange Rate was Php107 to £1
  3. Place into 5 Year Peso Time Deposit paying 8.30 sq m house in Tierra Grande, Lawa-an, Talisay City, Cebu.
  4. Discover the Friends Provident Policies only gave 0.075% Interest for the year, so sold all the Policies
    (losing the Life Cover, but I figured being worth more when you are DEAD, than when you are ALIVE, might get you there quicker?)
  5. Converted my UK Private Pensions into an Annuity, taking the maximum 25% Tax free, cash lump sum.
    The remaining 75% was put into an Annuity with Legal & General and pays about £300pm
  6. Given £15,000 as 'Advance Inheritance' by my Dad
  7. Convert to Peso when Exchange Rate was Php104 to £1
  8. Start up 'British Banger' sausages production to earn some income.
  9. Put funds into Rural Bank Peso Time Deposits (Legacy Group) paying 20%pa.
  10. Increased the 'Asset Link' Loan from HSBC, to fund more Rural Bank Time Deposits.
  11. Discovered 'Hybrid 6' Time Deposits (where 6th Years Interest paid up front, as Advance Interest)
  12. Stop expanding Sausages production as a business due to SMS 'Death Threat', that my wife treats as serious?
  13. April 2007 - Sha-Sha get offered chance of a Job as Pension Consultant with Legacy Consolidated Plans - commission only!
  14. In October, I 'risk' funds into LCPI Pre-Need Buy Back Plan (PNBB2) since it gives 41.67%pa APR!
  15. Sha-Sha buys me a Yamaha XT225 motorcycle as my Christmas present (with her earnings)
  16. February 2008 - Sha-Sha's daughter, Ana Karina, needs emergency Appendectomy.
  17. 2 weeks later Sha-Sha's Mama has a Stroke and a heart attack. Needs admitting to ICU to save her life - bleeding on her brain.
  18. Over Php1M spent saving Mama's life and her Kidneys had shut down due to the trauma. Only one Kidney recovers, partially.
    Needs Dialysis twice a week for the rest of her life, to keep her alive.
  19. April 2008 - put funds into DYM3i2 Peso Time Deposit. This is 3 Year TD, paying 33.33%pa, and this variant, offered 3rd Years Interest, up front in advance.
    I calculated this to be an APR = 50%pa. Investing Php1.5M Gross, required only Php1M Nett and Php41,666.67pm - needed to cover much of Mama's Kidney Dialysis Treatment
  20. May 2008 - I have what I thought was 'heart burn', but the 'discomfort' lasted all night. Went for ECG, and Cardiologist wanted me admitted to Hospital.
    Perpetual Succuor in Cebu has a Heart Institute - one of only 3 in the Philippines, so went there. 'Tropin T' enzyme Test confirms I had a heart attack the night before.
    (Just as well I went for a check up, and did not go to Dumagutte Hash that weekend!)
  21. Heart 'Echo Test' showed problems and 'Angiogram' (Heart Catheter) confirmed that I have Triple Heart Disease, with one area of my heart totally blocked.
    CABG surgery is the recommended treatment. Trouble is all our savings gone saving Mama's life!
  22. I opted for i) Medication, ii) Diet to reduce weight, iii) Exercise to get fitter and help with weight reduction
    (OK so did not really do enough in terms of exercise, as not even Bowling on Wednesdays and stopped 'Hashing' on Saturdays
  23. As a 'family' of 3, we had a Gross Total of Php7.5M deposited in Legacy Group Banks, generating Php141Kpm as interest income.
  24. We were spending Php45-65Kpm to keep Mama alive.
  25. Took out an 'overdraft' against my UK Annuity Pension income, and used this with some savings to invest Php1M with 5 others as Group of 6, into 'V8 Motorcycle Dealer & Parts', to leverage off the 100%pa from Php6M investment (minimum investment was Php2M and gave 60%pa).
  26. In October 2008, the Post Dated Checks from th Legacy PNBB2 started 'bouncing'!
  27. I take out a 'loan' with Oriental Bank, paying 3%pm over 5 months Term
  28. In December 2008, the Legacy Group Banks, started closing - declaring Bank Holiday, without authorization. Monetary Board issues Closure Notices.
  29. From 16th January 2009, the Post Dated Checks from the V8 Motorcycles investment started bouncing.
    Catherine L Soronio says it because of 'cash flow' problems in Oriental Bank, due to many 'nervous' Depositors withdrawing their Deposits.
    Soronio asks us Investor Dealers to co-operate, and accept a 3 month 'moratorium' on payments, or non-cash payments instead.
  30. On February 27th, Pastora Piala, Sha-sha's Mama dies in Cebu South General Hospital.
    We are faced with an outstanding Bill for Hospital and Doctors Professional Fees of Php540,000.
  31. Join a Group with Atty Diaz, filling a Case of Syndicated Estafa via the BSP against Celso G De los Angeles Jr et al.
  32. March 23, 2009, we hand into PDIC, 10 x Claims for Bank of East Asia.
  33. March 24, 2009, we hand into PDIC, 9 x Claims for Phil. Countryside Rural Bank.
  34. March 25, 2009, we hand into PDIC, 9 x Claims for Pilipino RB and 9 x Claims for 'Supreme' (Rural Bank of Bais)
  35. April 16, the V8 Motorcycles '3 Month Moratorium' is up. we demand a Meeting with Soronio.
    She outlines 'Option 1' or 'Option 2' as she refuses to honor the original Contracts and defiantly says "or there is 'Option 3' - Court Action"!
  36. Myself, my wife and some others, join with Michael Langdon's Atty Ervin Estandarte, to send 'Demand Letters' to Soronio over the 'Bounced Checks.
  37. Soronio ignores such 'Demands' and refuses to sit down and negotiate a settlement,
    so a Group of us file a case of 'Syndicated Estafa against her and Bank Directors and key employees.
  38. Celso's Lawyers manage to 'persuade' Justice Sectratary Gonzales, to change his earlier decision to waive the Filing Fees for the BSP 'witnesses'.
    They also manage to get all cases (except the ones in CDO) grouped in Makati RTC.
  39. My 5 Year Time Deposits with HSBC mature, but as the PDC's from PNBB2 'bounced; did not have the funds to pay off the HSBC 'Asset Link' as planned.
    So have to settle the Asset Link Loan with the mated Time Deposit - have Php450K Balance.
  40. As the Office of Senator MAR roxas endorsed my request to the PDIC for a Claims Status update, it seems the PDIC started paying out some of our claims!
  41. The Syndicated Estafa Case was put on hold Pending the Filing Fee payment, and appeal was submitted to new Justice Secretary - no decision made.
  42. On September 24th, it was 6 Months since submitting PDIC Claims for BEA. Salome's Single Account of Php250,000 still outstanding.
    The other 9 Claims totaling Php1.25M had been paid however for BEA.
  43. I had a half share of my 'Hybrid 6' Joint Account with Pilipino Rural Bank paid. Salome was asked to submit a Notarized Affidavit of Co-Ownership, before the PDIC pay her jalf share of that same Joint Peso Time Deposit Account. She returned via LBC Courier, received the next day. This was 7 weeks ago and still no payment Check by the PDIC.
  44. Salome did not get her O/S BEA payment, nor that half share of her Joint Account with me @ PRB, but she did receive Php201,362, for her Hybrid 6 PRB Single Account.
  45. I invest Php330,000 into a 1 Year time deposit with Green Bank, paying Interest Quarterly @ 8%pa Gross.
  46. I take out a Loan for Php285,000 with Green Bank for 4% add on charge (making it effectively 12%pa Loan Rate)
  47. I invest Php240,000 in local Family Catering Supply Business, paying me 36%pa.
  48. As PDIC pay more Claims, I increase the amount invested with that family business for their expansion and SEC capaitalization increase.
    Eventually I have a total of Php1M invested, giving me an 'average income of Php36,000pm - enough to live off as no more costs for Mama (other than O/S Bill)
  49. Case against Celso gets dismissed we heard recently - only hope is getting on 'List' for involuntary Dissolution (or hope Noynoy Aquino/MAR Roxas duo get into power?).
  50. 22nd September, myself and Salome file Claims for Php250K each for our Peso Time Deposits with Oriental (RB of Mabinay).
    There is doubt we will get paid any of our Deposit however, since Catherine Soronio did not make good the payments from our V8 Motorcycles dealer contract that had been assigned to paying off the Bank Loan, according to the PDIC, we owe the Bank, some Php700K+?
  51. Office of MAR Roxas endorses the e-mail sent to the PDIC asking why BEA Single A/C Claim still outstanding after 6 months, and no contact in respect of that Claim.
    Also why 7 weeks since submitting the requested Affidavit for her PRB half share of Joint Account, and no payment. Plus no contact from PDIC what so ever in respect of remaining 7 claims in PRB and the Claims for Phil Countryside RB, And Supreme (RB of Bais), nor RB of DARBCI.
  52. I receive a letter from PDIC stating the available bank records are not sufficient to complete examination of CTD Claims. They require me to complete an 'Affidavir of Ownership with Circumstances' stating the details surrounding the placement of said deposits and submit the same together with supporting ducuments, on or before 15th October 2009. Failure to comply with the requirements on the aforsaid date shall be ground for denial of claim!

In Summary, we have managed to live here for over 8 Years from Savings and cashed Life Assurance Policies with Bonus payments, invested in these Rural Banks. OK so all the Interest stopped in December 2008 and it 9 moths later and still waiting for nearly Php5M from the PDIC.

 

We also have a Court Case to try and get some money back from Celso G de los Angeles Jr. but that looks pretty hopeless (unless things change with new Government).

 

We still awaiting the Notice of Preliminary Investigation Hearing into Syndicated Estafa against Catherine L. Soronio et al.

 

We are still confident that we should get the Insured Deposit Funds off the PDIC, this month, or next.

 

 

You can make enough money to live off here in the Philippines, and can lose money also, with wrong business venture or fraudulent scam?

 

Like many investments, such as Stocks and Shares. It is rare that ever investment makes you lots of money. Some make more than others and some lose you money and occassionally, some may lose you a lot of money.

 

It's 'Swings and Roundabouts' - you just hope you MAKE more on the SWINGS, than you LOST on the ROUNDABOUTS?

Edited by David_LivinginTalisay

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Athena

seems so. Guess I just got lucky but its a lot of work 24/7 cant depend on most locals for this kinda thing. we been here 7 years for the resort and 15 on the diving school.It's enough to live on most months and it's put my wife through college. 2 degrees in education and almost done with her nursing degee (NOW YOU KNOW MY RETIREMENT PLAN HEHE)

 

ha ha haaaaaaaaaa..... now, that is what i called - cleverly honest!biggrin_01.gif

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Wonderer

Thanks for all the responses. I am retired Navy and could live on my pension if I weren't paying child support. I am 48 and my youngest is 7 so have some years to go. I have to say that I admire those who are younger and decide to make a go of it in the Philippines.

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