Unlocking Early Retirement: Insights from Five Years Abroad

Is Living in the Philippines Really Expensive? An Expat's Perspective

Update The Real Cost of Living in the Philippines: What You Need to Know As discussions of living abroad gain traction among retirees, the Philippines remains an attractive option. But how expensive is it truly to live in this Southeast Asian paradise? In a recent conversation with Morton Kenson, a Danish expat residing in the Philippines for over 30 years, we delved into the nuances of life in the Philippines, particularly concerning expenses and lifestyle choices for expatriates.In 'Is Living in the Philippines Really Expensive? Here's the Truth!', the discussion dives into the financial realities of expat life in the Philippines, exploring key insights that sparked deeper analysis on our end. Understanding the Expat Perspective Morton’s firsthand experience sheds light on essential aspects that future expatriates need to consider. Having transitioned from Denmark to the Philippines in 1995, Morton encapsulates his journey and insights in his latest book, "The Expat and Digital Nomad Guide." He wrote this guide to share the intricacies of living abroad, focusing on how to thrive outside your home country. “A lot of people have questions about moving here and adjusting,” Morton explains. Through his book, he addresses common concerns like cost of living, cultural shocks, and tips for navigating the local scene. Importantly, he shares relatable stories that make the experience feel accessible and engaging. The Reality of Living Expenses Despite the idyllic image of the Philippines as a budget-friendly destination, Morton illustrates a different reality. He mentions that while one might assume a low cost of living based on tropical allure, real estate prices near Manila can be surprisingly high—averaging around €3,300 per square meter. In many cases, expatriates can find better deals in Europe, prompting Morton to challenge the notion that the Philippines is the global cheap-living haven it is often touted to be. In terms of monthly living costs, Morton and his wife estimate their expenses at about €1,500. This includes housing (they do not pay rent as they own land), healthcare, and everyday expenses, such as groceries and utilities. An interesting point he emphasizes is the increase in food prices, driven by factors like transportation costs and market demand, making living expenses around 38-40% higher than in many European nations. Essential Comparisons for Future Expatriates Morton offers practical comparisons that prospective expatriates can use as a visual guide. He created an Excel sheet in his book that details how much common grocery items cost in the Philippines versus in other countries. By evaluating common items—bread, meat, vegetables, and wine—he hopes future residents can better manage their financial expectations. For instance, he shares that while chicken may be cheaper in the local palenque (market), imported goods can significantly inflate prices. Items such as Danish cheese and other imports represent a substantial cost hike, conflicting with a budget-friendly expectation. Dining Out: A Mixed Bag While dining out can be economical, particularly due to low labor costs in the service sector, Morton notes the variable nature of restaurant prices. He explains that the average monthly expense for dining out can still add up, especially if you enjoy regular meals at nicer restaurants. The key benefit, however, is that many popular local dishes remain affordable, making it easy to enjoy the local cuisine without breaking the bank. Healthcare Considerations for Expats A crucial point that Morton touches on is the need for adequate healthcare coverage. Although healthcare costs in the Philippines can be lower than in many Western countries, Morton recounts personal experiences that highlight the importance of having comprehensive insurance. He points out how costs can quickly add up, leading to significant expenses in emergencies. Understanding how the healthcare system works and ensuring you have the right coverage is vital for anyone considering life in the Philippines. Final Thoughts: Preparing for Life in the Philippines As you consider moving to the Philippines and integrating into this vibrant culture, it’s essential to outline your expectations. While Morton’s experiences will resonate with many, they serve as a reminder: the costs can be quite different than anticipated. Conduct thorough research, consider your lifestyle needs, and brace yourself for potential challenges. If you are interested in discussing your options for retirement or living abroad, consider engaging with seasoned expats through forums or local networks. Knowledge is power, and Morton’s insights reflect the complexities of making such a monumental decision—allowing future residents to be well-prepared for their journey in the beautiful Philippines.