My articles here are not going to all be about US military or federal (civil service) retirees, but Bob and I agreed at the outset that I should focus strongly on that area. There are lots of articles on many different sites written about “How to Retire” in the Philippines, but very few are written by actual US Military or Civil Service retirees. I am both. (Hello Paul and other notable exceptions to prove the rule).
In some ways military retirement isn’t all that different than retirement from any other job. In fact there is a lot of information in this article which is just as pertinent to non-military folks.
But in other areas there are huge differences, and those are what I plan to focus on. In the 10 plus years I have been actively involved in the “Live in the Philippines” niche I have seen a lot of information about military retirement here, and I have seen a heck of a lot of WRONG information mixed in with the good.
So my first point or caveat is, take EVERYTHING you read with a grain of salt. Most emphatically, this includes any information I write. I have a certain degree of expertise in some aspects of retirement, but the overall area of interest is very broad, and there’s no way I can “know” it all. Also, everything I write I strive to make accurate, but in the end, it’s all only my opinion or information I have passed on from sources I believe to be credible … but the sources may not be as credible as I think, or they may have outdated information also.
Number One Tip:
Go to the source. It is amazing to me how many folks I hear from with problems, or even actual fears, that stem from some vague “I heard” such and such. The majority of that “I Heard” “chismis” is strictly that, rumors and other half-truths. You want information about your actual pay? Go to DFAS (Defense Finance and Accounting Service) the ones who will actually pay you.
You want information regarding VA benefits in the Philippines? Go to the site of the VA office here in Manila … they are the only ones, really, who can speak for rules and benefits here in the Philippines.
You want to know about Social Security Benefits here in the Philippines? Go direct to the Manila US Social Security office (located in the US Embassy, Manila). It’s the only real source, because (as with the VA) many rules are different in the Philippines than back within the borders of the USA.
You want to know about filing your US taxes here in the Philippines? Go to the IRS directly. They even have several pamphlets and manuals available for overseas tax payers. Knowledge is power. What “Joe” down at the VFW, who was stationed in the Philippines when he was 20, tells you about life here 30 years ago? Not so much.
Whatever you need to know, especially for US benefits, go to the source, do not rely on What You Heard. In other words, research and write your OWN “term paper”, you’ll be surprised at what you can learn.
Number Two Tip:
Lose the fixation on cost of living. Virtually 9 out of 10 questions I get, and the vast majority of those I see on other sites online are about “cost of living”. I just looked up some samples figures for current US military retirement annuities. There are huge variations depending upon pay grade at retirement, years in service, which particular pay system you retire under, etc. But the bottom line is, the low $2,000 USD per month to the $5000 USD per month I saw mean that any retired military family CAN live here in the Philippines, no problem.
Personally I stopped publishing and talking about “cost of living” questions because they just cause so many “wasted breath” type arguments, and I was also tired of the perpetual “You shouldn’t spend so much for this or that” criticisms.
The way life works is, you spend what you wish to and I spend what I choose to, and we both don’t criticize each other, OK? Even if we lived side by side in identical houses on the same street, your monthly costs and my monthly costs are almost certain be very different … and that’s the way life is supposed to be. Choices and personal preferences.
I much prefer to recommend two very useful sites (at least two so you can sort of average things out and compare for yourselves).
Expatistan and Numbeo. Together these sites have up to date cost comparison figures from more than 200,000 “real people” like you and I who actually ARE living overseas. I’ll let them do the talking for me on the Cost of Living subject.
I will say I find their comparisons regarding costs here just outside the Metro manila area quite credible. The farther out into the provinces of the Philippines, the less accurate any site like that will be, because there are just fewer and fewer people to make reports.
The bottom line is, as a US Military retiree you can live here on your military pension, if you want to make the right choices.
Some Considerations To Start With:
| Pro | Con |
| Overall Cheaper Living | Not as Easy to Start a “Second Career |
| Great Educational Opportunities for Children | Wont Be familiar “US Schools” |
| Simple Medical treatment is Cheap and easy | TRICARE (can only use Standard) problematical |
| Complex Medical treatment is also cheaper | May not be available, always “Pay Upfront” |
| Very Cheap universal PhilHealth insurance | Low payouts, limited areas of coverage |
| Dental treatment is very cheap vs. US costs | Again, out of pocket, pay as you go – no “Plans” |
| Easy to own a car, reasonable initial costs | Traffic can be Horrid, overall costs not cheap |
| Public transportation is super cheap | Comfort, safety, reliability may not suit all |
| Plenty of shopping in city areas | No BX or Commissary – I miss them, big time |
| Very cheap cable TV | Last year’s shows, limited sections and sports |
| RAO’s offer US Mail service | Limited service – no merchandise – slow |
| Very cheap cell phone service | Limited coverage issues, overseas costs a lot |
| Lots of fresh veggies, fruits, meats | In general, food costs way more than the USA |
| No need to deal with US Immigration | May affect survivor’s benefits and citizenship |
| Many different visa solutions available | All cost money and all require some hassle |
| Can buy property with Filipino spouse | Foreigner may NOT own property |
| Veteran’s Benefits available via Manila VA | Veteran’s support substandard versus USA |
| Close proximity to Filipino family | Close proximity to Filipino family |
| Far away from US friends and relatives | Far away from US friends relatives |
Conclusions:
When I first figured out how to put the table of pros and cons into my article, I had to select how many columns wide and how many rows deep it needed to be. I picked 20 rows sort of arbitrarily, thinking I likely wouldn’t fill them all. Turns out, I did, and I could fill more “pros and cons” rows if I wanted to take up your time.
(Oh and the last two rows, listing the same subjects as both “pros’ and “cons”? That is not a mistake or sick joke. Being close or far away from family … the Philippine side or the foreign side, can really be either a blessing or a detriment. Once again, it all depends upon you and your own personal situation.)
So how did I do on my arbitrary choices? Are there subjects you want to see in more detail? Just give me a shout and I’ll do my best.
Dave, regarding your number 1 tip; re: go directly to the source, the IRS, for example, when it involves the filing of U.S. taxes in the Philippines. In my opinion, the next best option has to be Paul Keating through LiP or by email personally, especially if you need the information right away. I have suggested this because of my past experiences in communicating with various U.S. Federal agencies, the IRS and Social Security including. They are hard to reach first of all, and so slooooow in responding; whereas, with Paul Keating you get instantaneous response 99 percent of the time, and the information he provides on tax questions is accurate.
Not to malign U.S. Federal agencies, but on several occasions that I have dealt with the IRS and Social Security over the phone, I was given contradictory information by different representatives. At present, I have an ongoing inquiry with the Veterans Affairs. I initiated the inquiry more than 2 months ago. It has yet to move forward beyond their canned response in a form letter that says, “Thank you for your inquiry. We are looking into the matter, don’t contact us. We will contact you if we need additional information.” LOL
Trivia: Can anyone point out which of the old geezers in the picture above rendered the proper hand salute? 🙂
The Navy Chief of course!
I have to agree with you, but short of 100 percent, Papa Duck. In my opinion, the man you pointed out – front row, far right – tilted his head ever so slightly to the right, which is a common, but almost an imperceptible mistake. But, his hand salute was the closest to perfection among the group. My 3 years in the Army and being selected as the Colonel’s orderly as a reward for being sharp at each and every guard mount inspection has taught me this. As the Colonel’s orderly, I didn’t have to pull guard duty. LOL
Hey Joe, the Navy Chief’s salute was almost perfect as well, except his saluting hand was slightly curved inwards. So, in my opinion none of the old geezers rendered the perfect military hand salute. Sorry about the double posting. 🙂
Hi John – Just remember these two little rules:
1. The Chief is always right.
2. In case the Chief appears to be wrong, Rule #1 applies.
😆
Thank you Paul,
The Chiefs in the photo!
Always 100% Correct!
Thanks, John – You are too kind! 😉
@ John Reyes
True, John. I was thinking more of using their official publications as guidance. Emails, phone calls and such are always problematical at best.
Dave! Let me say I love the articles you write. I am a retired US Marine and soon to be retired civil service. I understand you retired from both as well. I also draw 70% disability from the VA. And next year I
draw social security. The wife and I are moving back to the Philippines 2015. I was station there at subic and been in and out of the philippines since 1970. So, I know the people and country pretty well.
My question is about buying a vehicle. I want the best thing I can afford. I want a Toyota Land cruiser 4X4. I know its expensive about 4 million plus pesos. I need realibility and depandability. I also like the toyota fortuner 4X4. Whats your thoughts on buying a vehicle out right there vice paying payments thru credit union in the US. I know interest rates are much higher there?
@ Morris,
Great to hear from you. Thanks for the kind words. Yes I am retired from USAF Civil Service (38 years) and I also did 24-something years in the USAF Reserve, and I’m drawing Social Security. Fortunately I have no disability and so no connection with the VA. If you have a SC disability the VA will help a lot, especially with medications.
Regarding the car purchase, I did finance a new car when I came here, via BDO bank. The interest rate was (and still is) atrocious.
US banks/credit unions typically will not finance cars here. A couple ex-military folks I know have recently been through the whole drill, couldn’t even get what they needed direct from Navy FCU, perhaps the best credit union. (if Paul Thompson reads this I am sure he’ll chime in … feel free, Paul)
My personal thought is, you don’t need to spend anything like that kind of money for a comfortable, very dependable car. My Mitsubishi Adventure, for about P800,000 does everything a Fortunerer does, for 1/3 the price, burns less fuel (You WANT a diesel), is narrower, (big consideration for traffic) and will take just as long to fall apart from the atrocious roads.
For the record I AM a big Toyotas fan boy, they just don’t sell a good “fit” for what I wanted here in the Philippines. Toyota used to sell a little AUV called the Revo which would have been great but it is discontinued now. So I am not “anti-Toyota, I’m anti wasting money for these roads/driving conditions
4×4? What 4? (LoL) … expensive to maintain, rides harder, wears out (expensive) tires faster, wastes gas and I have never had a need for it in 8 years.
Save the money now and pay cash when the time comes … or buy something cheap you save and then buy your dream car for cash. That’s what Dave opines.
Thanks again Dave for taken your time to reply to my request. I was thinking about a 4×4 because of where I will be living. In the provience. Place call libmanan camarine sur. you think the roads are bad in city well where I will be living they are really bad. Mud, high water etc…,
I agree to buy in cash is the best way. I really want a vehicle with a warranty. Its hard to trust anyone you buy a vehicle from unless it is new or you really know the person. I will be living in place that does not have a lot of road traffic and is far out. This is why dependability of vehicle is a must have. I am open to anyone you know who sales or is selling a vehicle. That is my plan. Navy federal told me they have finance vehicles for people in the Philippines. I only will use them if I had to. We have relative that is a bank manager for security pacific. She send me their rates and like you said they are brutal.
In closing again thanks for speaking the truth. The Philippines is no place to be for a broke American. I am so glad we spend the time working hard for uncle Sam to be positioned to retire now.
Are you going to live in the P.I. Until you pass on? Do you invision yourself coming back to U. S. to live again?
Dave;
A plus side to the US military member retired in the Philippines is access to the Retired Affairs Office which also provides a stateside mailing address. The Military Service Clubs such as American Legion, VFW, Fleet Reserve Association and TriCare which is working very well in this area. The clubs, which will pitch in to aid you and your family in times of trouble. Now it’s true they are not always located close to you, but worth seeking out. I live in the Subic area mainly because they are here and when I shuffle off this mortal core they will assist my family in taking care of all the items that have to be settled back in the good ole USA, things that she wouldn’t have a clue about how to do. But as Dave stated Joe at the bar, will never be the correct source of information.
Paul,
Good point on the service organizations. I plan on living in Subic just for that reason.
Don’t you mean “NoCare”?
@ Paul Thompson
True that, Paul, true that.
Great article Dave. Are you supporting your other websites anymore? I went to PhilFAQS the other day and it was kinda half there. Across the top it said the address could not be found but all of the menu items were still there and I could click on some things
@Jason Gonzales
Yes I am supporting PhilFAQS, but there is some recurring 404 page not found error which has been showing up to others (not everyone) but not to me. It’s hard to fix errors that don’t show themselves when you try to work on them. Thanks for the report, I’ll keep a trying.
John,
The one in front row far right.
I have to agree with you, but short of 100 percent, Papa Duck. In my opinion, the man you pointed out – front row, far right – tilted his head ever so slightly to the right, which is a common, but almost an imperceptible mistake. But, his hand salute was the closest to perfection among the group. My 3 years in the Army and being selected as the Colonel’s orderly as a reward for being sharp at each and every guard mount inspection have taught me this. As the brigade Colonel’s orderly, I didn’t have to pull guard duty. LOL
Hi Guys
American and Australian military retirees are to my mind very well looked after. Retire from the New Zealand military and you become a civilian, and they don’t want to know you anymore. Regardless of length of service, regardless of trouble zones you have served in, regardless of anything.
@ Murray
Sorry to hear that, Murray. That’s why I didn’t say it was a good place for ALL military retirees, I only know about how things work for the US side of the house.
well done ,with miltary style check list. wish you well dave
@ James Dougal
Thanks for the kind words, James. I don’t always hit the mark, but I do try to present both sides of the picture. There are pluses and minuses everywhere.
I belong to a couple of very active US retiree online groups .. military and civilian as well, and the rason i don’t spend much time there is so many fellow retirees seem to have lost all balance between good and bad.. EVERYTHING seems to be no good to so many people. Frankly, I hope to never be in that frame of mind … having buried many a friend or family member in their 40’s or 50’s, I consider myself very lucky to be ticking on all cylinders heading for birthday # 68. Is this wrong, or that wrong? Yep, it is, but when I see the sun come up in the morning, and I have more than enough to eat and all my bills paid, I feel damn lucky and thankful to HE who made it happen.
Good stuff. Funny people somehow fail to do simple research yet will ask the opinion of a complete stranger. Then actually believe it without question. Retired Miltary coming directly here is tough. I did it however be flexible and relax. I have been here 6+ years. So relax and enjoy the show.
@ Tim Potter
Thanks for the vote of confidence, Tim. I retired from the reserve Forces, meaning I had to wait until age 60 to draw retired pay, so like many do as a matter of course, I had to grind it out for years and years in a second career before I could actually “retire”. But unlike most places, a current retiree, going right from active duty in say his/her 40’s, certainly CAN come here and live. and live quite well too.
I have been to the Philippines many times while in service and since retirement and I thought I knew plenty about the Philippines. However, since reading this site and back issues, I find I did not know near as much as I thought. I like that there are many different people writing so that you get a different spin on things and that people seem to tell it like it is here.
Dave,
I am happy to see someone writing about military retirement and moving to the Philippines on the site now. Go to the source and keep it simple is always the best information, but so often people make things harder than they have to be. I also agree with Paul about using the Military Service Clubs, because most veterans will try and help out a veteran and that is one of their functions. So, keep the articles coming.
Hi Dave – You mentioned the VA benefits, I second that. They can go to VA clinic on Roxas Blvd..still I think. US Veterans can have appointments, free meds, free check up, and even know which hospitals VA is affiliated like St. Luke’s, UST. San Juan De Dios.. etc, etc.
Sugar
Hi Sugar, thanks for writing in. I’ve mentioned the US VA Clinic a number of times and hope to write more, but it’s unfortunately not quite as simple as being there to help all US retirees. They have very strict rules for levels of disability, if the disability is service connected, and even when the disability occurred (example, must be during certain periods of as conflict determined by the US, etc.)
But you are certainly correct, it is a great resource and many don’t know, they serve eligible US vets all over the Philippines, either by paying for travel for treatment at the Manila clinic, or by contracting with Philippine doctors and hospitals in the area a veteran may be living. Also they serve ALL eligible veterans, not just retirees. It’s the only US Veterans facility outside the USA, a distinct plus factor for those who decide to live here in the Philippines.
Thanks for pointing that out.
I haven’t retired to the Philippines yet, but plan to.
One question which was raised by the list of PROs and CONs of living in the Philippines was “Living close to Filipino Relatives”.
I’m sure everyone has an opinion, but can people explain to a virgin like me what they are?
Please keep in mind that I am single and will be moving to the Philippines and plan to meet, marry and have a family with a Filipina and I’m still looking for the Filipina via the internet.
Hello Fuglybear. Dave may chime in later, but I’ll pitch in. By “Filipino relatives”, we mean your Filipino in-laws. Filipino families are incredibly close knit. When you marry a Filipina, you gain the benefit of this support group, and take on responsibilities to provide support according to your means. The family includes not only your (future) wife’s immediate family, but also the extended family. This can sometimes seem like cousins times infinity, and all of ’em needing your money for something. It will be up to you to find and hold the balance between being a helpful part of the family and feeling that you’re being taken advantage of. Dave’s chart correctly lists proximity to family as both a pro and a con. Some westerners thrive in a house bursting at the seams with people, and others need some semblance of privacy. We opted to live about 30 kilometers from the family farm. That seems just far enough to prevent trivial problems but close enough to work with the genuine things.
Take care,
Pete
Cordillera Cowboy
Thanks Pete, that said it better than I could have .. and in about a thousand less words 😉
You’re welcome, Dave. Just hope Fuglybear seesit.
Take care
Pete
Thanks for the head’s up, me and the wife moving back to the PI in Mar 2017. Tacloban Leyte. I definitely agree with the diesel engine, Fuel in the PI isn’t up to us standards. And from what I can find Tricare is pay the bill and see if they will reimburse you the 75%. From my limited experience live off the local economy and you should be fine, also keep the electrical use to a minimum that will get expensive. Any one in tacloban area give me a replay.