No matter where in the world Filipinos may choose to live, there will always be a part of them that will yearn for the joys of home. With its gorgeous beaches, warm smiles, vibrant culture, and strong family ties, how could one not choose to spend his sunset years in the Philippines?
According to the U.S. Department of State, there are over four million Filipino-Americans living in the U.S. And while many have become successful at attaining the “American Dream,” a good number still find that nothing compares to the comforts of a simpler life back home.
With retirement comes a host of concerns, such as retirement income to sustain a lifestyle and meet the cost of living, access to quality health care, along with elderly care and palliative care. In light of these considerations, Fil-Americans are making the choice to retire back in the Philippines.
To better understand how advantageous such a move could be, we asked two Fil-Americans who plan on living their senior years in their respective hometowns. Read on as we uncover the benefits of retiring in the Philippines.
Dollar-earner, peso-spender
Although Arvin John Cruz, 45, may be living a fulfilling life as an educator in Kansas, nothing would make him happier than spending time back home once he’s bid farewell to the academe. Currently working as a department chair at a state university, he’s intentionally taken an aggressive stance when it comes to his retirement investments. He’s also continuously contributing to the social security system (SSS) in the Philippines as an added source of retirement income.
“A big percentage of my salary is being set aside for the future,” he reveals. “That’s why I’m considering the Philippines.”
While Arvin considers himself a middle-wage professional, he knows that what he earns is worth a considerable sum in the Philippines. “Here, the average income is a millionaire in the Philippines,” he shares. “Dollar-earner, peso spender. That’s a win-win situation.”
Lower cost of goods
Arvin is just one of many Fil-Americans carefully studying how beneficial it would be to him if he were to retire in the Philippines. And as he’s pointed out, his earnings are worth so much more back home.
“The cost of goods is relatively cheaper,” he points out. “Although it’s getting more expensive for the last decade or so. Prices have gone up. When I went home in 2007 or 2008, you could really see McDonald’s meals for as low as P39. But here, it turns out $4.99 or $6.99. If I spend my earnings here there, a meal which would’ve cost me P300 would be just P29 here. So just imagine, that’s six meals already.”
Accessible lifestyle
When Fil-Americans retire in the Philippines, not only will they enjoy cheaper prices of basic commodities, they will also be able to afford the same lifestyle they had in the U.S. This means they don’t need to scrimp on products and services they used to enjoy back in America. A lot of U.S. and international brands have also become staples in shopping centers compared to decades before, when balikbayans needed to hit duty-free stores to avail of these.
These days, it’s also easier to go on international trips, with the boom of budget airfares and the reopening of countries. A big fan of nature hikes and sightseeing, Arvin looks forward to touring the world, especially in his senior years.
“The lifestyle is accessible,” Arvin notes. “The cost of living is relatively low in the Philippines, yet I’m able to sustain the same lifestyle.”
Family first
Lucille “Lucie” Sanders has been living in the States since 2002. She was completely content spending the rest of her life in America, until her husband passed away a few years ago. Having only one sibling in the U.S. and the rest of her family in the Philippines, she realized that she wanted to spend her retirement years back home.
“Since I’m a widow, I’m just by myself,” the 56-year-old day habilitation staff shares. “I’m all alone here in Iowa. My sister is in Oregon so it’s been hard. I miss the holidays and celebrating my birthday with family. I work on holidays. I work on my birthdays or I keep myself busy.”
When Lucie visited the Philippines in February 2023, she realized just how much she missed her family.
“Because in the Philippines, people are happy even if life is simple,” she adds. “Fine, we complain about the heat, the traffic. But these don’t mean anything if you’re surrounded by family and friends.”
In Iowa, a percentage of workers’ income goes to a pre-funded retirement plan called the Iowa Public Employee Retirement System (IPERS). “I’m hoping and praying that if things go well in 2026, I can already pull out my IPERS so I can use it when I go home.”
Small businesses
Just like Arvin, Lucie knows all too well how much more expensive it is to live in the U.S. Which is why she makes it a point to consistently fund her savings accounts in the Philippines for her retirement years. She knows her savings and pension can go a long way back in her hometown of Bacolod. The average cost of living in Bacolod is $552, which falls under the top 14 percent of the least expensive cities in the world.
“When I go home, at least I have some money, apart from my IPERS and monthly social security,” she says. With the money she’s pooled, she is planning on either helping her sister transform a property into a retreat house, set up a small business, or buy a farm in the province.
Property investments
Under Republic Act 9225 (Citizenship Retention and Re-acquisition Act of 2003, otherwise known as the Dual Citizenship Law), natural-born Filipinos are able to own land and property in the Philippines. This can be in the form of apartments, condominiums, commercial spaces, or houses.
Because Arvin is a dual citizen, he is able to invest in properties back home. A few years ago, he invested in a condominium in one of the country’s central business districts, providing him with rental income and a residence once he retires. He once thought of purchasing a lot but compared the costs to buying a condo unit.
“I once considered housing but realized the benefits of having a condo,” he shares. “It already comes with maintenance. If I bought a house, I would need someone to maintain it for me as it would succumb to wear and tear. I’d also need to pay taxes, whereas when you buy a condo, the taxes are already included in the dues.”
Apart from real estate, Fil-Americans can also invest in the Philippine stock market, mutual funds, government bonds, or Unit Investment Trust Funds (UITFs).
More affordable health care
Arvin and Lucie will be eligible for Medicare once they turn 65 years old, providing them access to hospital insurance, medical insurance and prescription drug coverage in the U.S. and worldwide. Should they spend significant time in the Philippines, however, this might impact their eligibility. In such a case, they can opt to continue paying for Medicare out of their pocket or seek health care in the Philippines.
Health care costs in the U.S. are known to be some of the most expensive in the world. Health care in the Philippines, however, is easier on the pocket with PhilHealth, the country’s government-backed healthcare system. Under Republic Act 7875 as amended by Republic Act 10606, Fil-Americans with dual citizenship can avail of PhilHealth benefits by simply filing out a form or submitting an Identification Certificate issued by the Philippine Embassy or Philippine Consulate overseas.
Other considerations
It’s not just the financial aspect that Fil-Americans are thinking about when it comes to retiring in the Philippines. Apart from being able to afford the cost of living, they must also consider where they will live in the Philippines.
Will they be purchasing a property to live in (like Arvin did), or will they be living with family or friends? Will they stay in the busy city where products are more expensive but accessible or in the countryside where things are cheaper but the place may not be as developed? Will they be financially supporting any relatives? These decisions will have an impact on how much they’ll enjoy their retirement in the Philippines, the pace of their lifestyle, as well as how much they can stretch their budget.
With careful planning and preparation, Fil-Americans can design the retirement life of their desires back home. “My roots is Filipino, so I’m still in love with the Philippines,” shares Arvin.
“This time, I want to be with my family, to enjoy my remaining years,” Lucie says. “I’m really excited.”
