Retirees with Financial Concerns - Retire Dumaguete and Siquijor

Financial Concerns for Retirees

One of the most frightening experiences any retiree can have is to wake up one morning with still several years to live and realize they are financially insolvent and the ugly topic of financial concerns becomes front and center . Let’s be more direct. They wake to realize they’re *broken* financially with little or no money to live on. It’s a not-infrequent experience, especially in America, where most people spend more time planning for their annual vacations which will last perhaps two weeks, rather than for their retirement that will last twenty years or more.

Although we are focusing on America, its probable similar financial challenges face retirees in Canada and also in some European countries. The average savings of Americans in their sixties is $172,000. Unfortunately, the advised amount they should have saved is 8-10 times their annual salary. There are horrifying documentaries of how the poor in America live. And it’s not well. The purpose of this blog is not to create fear, but to be realistic while suggesting options and solutions, for those who are financially challenged.

The average social security check issued monthly in America is $2020 (Department of Social Security, dated January 1st, 2020). If an individual or couple have $172,00 in savings and their social security checks are also coming in each month, where can they comfortably live in a retirement destination that would provide them with an environment that is comfortable for them. What are their options?

What many retirees have been doing for years, and more so over the past five, has been retiring abroad. The social unrest in the United Stated combined with the negative impact of the C19 virus has significantly increased the number of retirees who will be leaving America to live abroad. In the past, they have decided to live primarily in Mexico, Costa Rica, Thailand, or the Philippines. Because of the positive exposure, the Philippines has received, and Dumaguete in particular, the Philippines has now become the main retirement destination for retirees in Asia. a lot of this has to do with financial concerns.

Mexico has lost its attraction primarily because of the fear created by the drug war there and the subsequent instability of social life in many parts of the country. While some parts are still good to live in, an overall sense of insecurity prevails with many parts of Mexico being no go areas. This is not an environment in which retirees want to live their remaining years.

Costa Rica was, and remains, a place where many foreigners go to retire. Unfortunately, although it’s a lovely country and stable politically, it’s not affordable for most retirees. It caters to the more affluent foreigner with substantial assets.

Thailand has lovely people, and a cost of living similar to the Philippines, but, and this is a big one, the language barrier is challenging for all foreign retirees. Also, it does possess the Philippines history of exposure to foreigners, particularly Americans. The US military presence in the Philippines is still strong and may increase as tensions between China and the Philippines increase.

So, why the the Philippines for retirement, and Dumaguete in particular? There are many practical and emotional reasons. It’s not by chance that Forbes magazine confirmed Dumaguete as one of the best retirement destinations in the world. It’s not by chance that the Philippine Retirement Authority (PRA) has confirmed Dumaguete as the best retirement destination in the Philippines. It’s not by chance that ex-pats from all over the world have made Dumaguete their retirement destination for many years and are doing so in ever-increasing numbers.

Unlike other retirement destinations, Dumaguete is where people with limited assets can not only live in financial comfort but also feeling secure in their daily lives. There’s also the important advantage that most Filipinos speak English, so no language barrier exists as it does in other retirement destination countries.

The cost of living in Dumaguete is affordable for those with limited financial resources. Even on the average social security check from America, it’s possible for newcomers to come and live without having financial concerns. For example, a good-sized, two bedroomed apt, depending on location, can be rented for the equivalent of US S400. A good-sized three bedroomed house can be rented for between $400 and $500 monthly. If you come with US $150 k in cash you could build a delightful retirement home and never pay rent. Your advantages and options in Dumaguete are valuable and many.

Farmers markets offer a vast assortment of fresh produce at a minimal cost. This impacts in a positive way, the overall cost of living for ex-pats.

Locals in Dumaguete are always relaxed. It’s rare to see anyone in Dumaguete getting upset and even rarer to see anger. Even on that rare occasion, it’s likely a foreigner will be the source of it.

Good luck if you want to find a police officer after 5 pm. They are already on their way home for dinner, and a quiet evening with their families.

Dumaguete is renowned for the local’s genuine warmth, and for their welcoming attitude towards all foreigners, regardless of their country of origin.

So, consider your present and future life. Get serious about the positive quality of life that living in Dumaguete will bring to you. A solution to your financial concerns where there will be no more fear about not having sufficient funds to enjoy the remainder of your life. Think of walking around and enjoying locals and other ex-pats smiling at you with warmth while you live in your tropical paradise. Contrast all of that to your present situation. Startling, isn’t it? Now, make a decision to take action to significantly improve your life. Set a date to begin enjoying the quality of life and peace of mind living in Dumaguete will give you!


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