The other day, I got an e-mail from a self described “keen follower” of this site, his name is Paul.
Paul had a question regarding the costs of living in the Philippines.
Of course, cost is an important consideration for those planning to live here, unless they have a large budget. But, for most potential residents of the Philippines, cost is something that they have to consider and take into account when they make their decisions on where to live, lifestyle and other such matters.
Let’s see what Paul had to say:
I am a foreigner living in Japan, and a keen follower of your Web Magazine.
I am considering retiring to the Philippines is about 14 years time.
Your book’s tiltle Retire like a King on US$1200 is based on what? Current prices at the time the book was written? Does it allow for inflation?
I believe the inflation rate for the Philippines is running at about 7% per annum?
In ten years from now how many dollars would I need to live like a king? I could do the calculations, but from your experience how have prices differed since you set foot in the Philippines?
Thanks for writing! Nice to receive your questions.
Actually my book’s title is not “Retire like a King on $1200 per month.” In fact, I never even mention the figure $1200 per month. The title of the books is: “Retire like a King, and do it on a reasonable budget.”
That said, though, you can retire here on $1,200 per month at this point, but that amount would be a bit tight. It is doable, though. I tend to recommend $1,500 as a better level for your retirement, though.
Yes, of course the cost will grow as time passes, and that would be true anywhere in the world.
You are right, inflation in the Philippines is running about 7% right now. It has been higher than that in the past. I first moved to the Philippines permanently back in May of 2000. I would say that prices have at least doubled, and in many areas have tripled in that time. Of course fuel prices are the primary one that come to mind, and gasoline has quadrupled here since we came here… but that’s not a Philippine thing, it is a worldwide problem.
You can still live a decent lifestyle at a relatively small cost here…. just not as much as 10 or 15 years ago! It is something that is fading… but still achievable for now.
Good luck to you, Paul.