David_LivingInCebu

I dont know if any of you read in the Daily Telegraph about the plans the UK Government has to raise Retirement age to 67 or something?

The Daily Telegraph reported than 1 in 5 wont make it to 67, they would die before receiving any Pension! That is the reason they want to raise the Retirement Age, so they dont have to pay out so much surely?

Anyway I am almost glad I lost my job when there was a 'Telecom recession' in 1999 onwards. This prompted a move to the Philippines in 2001, and I have been here ever since.

The cost of living is a lot lower than the UK, which is one of the main reasons fo living here. Nice climate with temperatures warm to hot all year - even the rain is warm. The Philippino people are generally very warm and friendly and nearly everyone can speak Americanised English.

If anyone on this Forum is at all interested in reading more about how I actually managed to live here in Cebu, Philippines, and retire at just 50, then please check out my Word document “Retirement in Paradise (revised).doc”

http://tinyurl.com/n65zs

Cheers,

David

Jockstar

If thats the link at the bottom.?Then its not working mate.

David_LivingInCebu

Sorry about that - perhaps you need to be signed on to be a Member of Yahoo Group - Cebu_BritClub, for the link to work?

I have attached said document to this reply for your convenience.

Best regards

David Whittall
http://groups.yahoo.com/group/cebu_britclub

poollounger

Saga magazine did an article about the problems of finding a job over 50 ..as to finding one over 60 unless one wants to stack shelves. The government might have a shock in store as all these over 60s register as unemployed..

Gray C

For you information.

Since A Day (6th April 2006) you are now eligible to take your protected rights pension fund as 25% tax free cash and a pension. You no longer have to wait until you are aged 60

Graham

David_LivingInCebu

Graham,

Thanks for taking the trouble to let me know about the Pension rules changes regarding 'Protected-Rights' element of ones Private Pensions.

I had actually noticed an article in the Daily Telegraph 'Money' page (www.telegraph.co.uk/money)

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/04/05/cmpen05.xml&DCMP=EMC-mpf_07042006

Since I have cashed in my Private Pensions, much of the changes do not affect me. The change of rules to the 'Protected Rights' element might well do however!

I have sent off an e-mail to my IFA asking if this means I can now take 25% Tax Free Cash Lump Sum from those 'Protected Rights' element of two Private Pensions? I previously thought I had to wait until I reach age 60, before touching, but this report implies the rules are now changed?

My IFA replied confirming that "from 06/04/2006 to 05/04/2010 you can take your protected rights at age 50. From 06/04/2010 the minimum retirement age rises to 55". So I have now asked him to arrange the 25% lump sum payments , with the balance going to boost my Annuity slightly.

I should hopefully be able to realise at least £4,700 as a lump sum payment. This might not sound much, but this is Php460,600, or Php7,677 a month extra income from a 5 Year Term Deposit with certain Rural Banks here in the Philippines. (Had I been able to do this last year when the Peso was 105 to £1, then this would have been Php8,225 a month extra income)..

It sure beats waiting till I reach 60 - almost makes up for Gordon Brown's raid on Pension Funds!

Cheers,

David

ex reg

Very interesting stuff.
I'm probably similar to you inasmuch as I started my retirement from HK in 1999.
And at 50.

However I'm married to a Singaporean and we split our lives now between UK and Singapore, generally 6 months 6 months.
As she's domiciled in S'pore all our cash in S'pore is in her name and if she doesn't remit any to UK then it is tax free in UK.
Any profits from investments, apart from rental income, are free of tax in S'pore.
Any return from bank deposits here is very small compared to the Phillipines, max now is around 2.5% although you can get 3.6% from Government bonds.
We have two properties here, one which is rented and which returns 5%pa which reduces to about 2.5% after all charges.
We'll prolly offload that in a few years but at present it's nice stable income.
I've also invested in unit trusts here and last year got a return of well over 30% which is non taxable.
All together we can live easily and well in S'pore even though the cost of living is well above the Phillipines.

In the UK all investments are in my name.
We haven't sold our house there and won't as we obviously return to it for six months a year.
The only question I'd have with your scenario is over the selling of your UK property. House prices in the UK have been and continue to rise very nicely.
Unless you needed the capital for your Phillipines investments etc I would have considered letting the house in the UK and also benefitting from the increase in the house value at a later date. But I'm sure you did your sums and made the decision which is right for you.

My UK investments are of course subject to UK tax but even when taking that into account we live well when we return to the UK.

From my point of view retiring was the best thing I ever did.
Spend much more time with the wife.
No stress from working and I don't miss working one bit.
Travel and enjoy ourselves when and how we like.

Obviously you need some money put by in order to invest, in whatever form and you have to monitor those investments carefully, but luckily we've now got over the big drop in investments which occurred in 2000/2001.

We took a bit of a plunge when I retired as I guessed we'd be ok moneywise without being 100% certain.
But after living in S'pore I found out much more than I could have from even working here which I did for many years.

I think it's very important that people take charge of their money from a very early age.
Most people in UK don't.
Many don't even understand APR and don't bother with looking after their money whatsoever.
I don't say to be frugal but after all it is YOUR money.

Anyway that's my experience from the Singapore perspective.

David_LivingInCebu

You are quite right that 'Bricks & Mortar' have always been a good investment in the UK.

Trouble is I dint own any property there any more. I signed a Council House purchase via my Father-in-law over to my two children in a Trust to they are age 21. Considering I spent £26K on this 20 years ago and it is worth over £226K approx now, I would say that was a good investment - for my children anyway!

My ex got to keep the house as part of the Divorce settlement valued at £250K in 2000, so no doubt worth a fair bit more 6 years on, but I dint get any benefit from that!

My apartment in Paphos Gardens, Paphos, Cyprus, I did get to keep after the divorce. Pity I could not have held onto that as it probably worth a lot more now Cyprus in the EEC, and better letting potential also. Forced to sell unfortunately t pay off credit card debts and solicitor fees!

No all I had was some 7 x 'with profit' endowment style life policies, some share that were acquired along with them, and these Private Pensions, which have now been converted into annuities. The good news being, from 'A-Day', I should be able to get the 'protected rights element' also.

I have enough 'income' from my pension annuity and the interest from money converted to Philippine Peso (when rate was Php107 to £1, fortunately, rather than current Php90!) and put in tax free 5 and 6 year Time Deposits paying interest monthly @ 20%pa.

This gives me a comfortable retirement here in Cebu, Philippines. Now my 21 year old step-daughter has found a job, it should get even more comfortable, with money to travel and explore other parts of the Philippines.

Want to visit UK in 2007 for my daughters 21st Birthday and to see my 74 year old Mum, who wont recognise me, let alone remember my name, as she is suffering from Alzheimer's. My Dad was having tough time coping as 'carer' and felt it was getting too much for him as he was suffering from the stress of it. He resorted to having her put into a home and having 'Special Power if Attorney' Forms drawn up. that is what I miss the most about not being in the UK - not seeing my Mum (not that it would do much good). It's just tough knowing her brain is shrinking and her condition getting worse as time goes by. I just want to see her again before she dies - perhaps in 6 - 8 years, perhaps less than this?

My Mum & Dad, came out to visit me here in the Philippines. The first time was for my marriage to my Filipina here in in Cebu on 16th July 2002. She had no signs of any problems then. She then visited 18 months later and was OK 95% of the time - some signs now and agin that something was wrong. She was a lot worse in April last year when I was celebrating my 50th Birthday. I dont like to think what her condition might be by July next year?

I am happy married to Sha-Sha and like the life I have here.

Cheers

David & Sha-Sha

HLloyd

David,
Thanks for your many posts on retirement in the Philippines. Something I am considering myself in the future. I am interested in any more info you have on the 5 or 6 year fixed term deposits. Do you have to be residing in the Philippines to apply for these?
Thanks
HLloyd

David_LivingInCebu

H Lloyd,

First off such deposits normally require evidence of one's ACR (Alien Certificate of Residence), which is what you get if you get a Permanent Residence Visa. Seems Banks are tightening up on the 'Rules' for opening accounts (Anti Money Laundering).

Having said that, I am not sure if every Rural Banks demands this, even if they are supposed to? However I would suggest it is best to stay within such Rules just in case you ever needed to make a claim under the PDIC deposit insurance scheme - dont want them rejecting any claim if you cant produce your ACR, if they demand to see it?

If you want to learn more on these Philippines Rural Banks that were offering Peso Time Deposits with 20%pa interest (Gross of 20% Withholding Tax due to being personal 5 Year deposits), please see the following Thread on the 'CebuLiving.com Forum':-

http://www.cebuliving.com/forums/viewtopic.php?t=700
"Rural Banks - 20%pa Interest, credited monthly: I have proof".

Also http://www.cebuliving.com/forums/viewtopic.php?t=510
Where can I get a good interest rate on my money?

Hope you dont mind me quoting those message Threads (you might have to sign up to read them?). Saves me repeating much of the Questions and replies already given.

Hope such information provides you with the extra information you might be looking for?

Cheers,

David

HLloyd

Thanks David. I'll read up on those links.
Cheers

Thydney

Big deal I retired at 35 and if you need telling how to do it you probably can't