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The Perks of Retirement in Thailand and the Philippines

By WTOP Staff

Southeast Asia is a remarkably beautiful and diverse region that is becoming much more welcoming to Western retirees. Southeast Asia’s big appeal for foreign retirees is the cost of living. Several countries here are among the world’s cheapest places to retire. Your money goes much further in this part of the world than in the United States or any other Western country, but that does not mean that the standard of living is necessarily lower.

It is possible to stretch your retirement nest egg to enjoy a better lifestyle in Southeast Asia than you could afford anywhere else in the world. For example, in the United States you’re probably paying at least $50 per month for reasonably fast Internet. In the Philippines Internet costs $12 per month, likely for faster speeds than you have now. In Thailand and Malaysia fast Internet is $18 per month.

Similar savings can be seen in the prices of everything from rent and phone service to cooking gas, electricity and groceries. A visit to the doctor costs less than $20 throughout most of the region, and the care you receive is likely to exceed your expectations. English-speaking doctors educated in Europe, Australia and North America are the norm. They work in hygienic offices with modern equipment and can be affiliated with modern internationally accredited hospitals. Thailand and Malaysia are among the top five countries in the world for medical tourism.

English is widely understood throughout the region, and it is an official language of the Philippines and parts of Malaysia. The majority of people you come into contact with in these two countries are fluent in English. Additionally, English is a required subject at schools in every country in Southeast Asia. Urban areas and many small towns have enough English speakers that communication rarely presents a significant barrier.

Living in Southeast Asia full time is increasingly becoming an option for Western retirees. Several countries now offer user-friendly, affordable retirement residency programs, this region’s answer to the pensionado programs that have attracted so many foreign retirees to key Latin American destinations. New programs offered by some countries in this part of the world directly appeal to foreigners looking for legal, long-term residency in retirement. Several countries waive any minimum monthly income requirements for long-term or permanent residency if you invest in a fixed-deposit account at a local bank. In countries where a monthly pension is required, the qualifying amount is often surprisingly low.

Thailand and the Philippines, in particular, are recruiting foreign retirees with benefit rich and low cost of entry visa programs.

Thailand. Thailand has some of the best beaches in the world, lush mountains and jungles, a laid-back, welcoming culture and a foreigner-friendly infrastructure. Thailand also has one of the world’s lowest costs of living. For these reasons, thousands of foreigners have settled in this country in world-renowned resorts such as Koh Samui, Koh Lanta and Phuket, in cities including Bangkok, Pattaya, Chiang Mai and Chiang Rai, and in the smaller towns of Hua Hin, Cha-am and Pai. It’s rare to find a town in Thailand that doesn’t have at least a few foreign residents.

It used to be possible to stay indefinitely in the country with a tourist visa, making visa runs to a neighboring country every month or so. However, the relevant laws were changed a few years ago. Now a foreigner who wants to live in Thailand long term needs a visa. Thailand offers several residency visa options. Retirees typically want the non-immigrant “O-A” (long-stay) visa. To qualify, you must be age 50 or older at the time of application, have completed a satisfactory police records check, obtain a medical examination, present a certificate of health and deposit 800,000 baht (about $24,800) in a Thai bank for at least two months prior to making your application or be able to prove that you receive a pension of at least 65,000 baht (about $2,000) per month.

The term of the “O-A” visa is one year. You can apply to extend it by showing three months of bank statements or pay stubs to the Immigration Department, proving that you continue to meet the financial requirements.

The Philippines. The cost of living in Thailand is low, but it’s lower still in the Philippines. A retiree could enjoy a quality lifestyle on a budget of $1,000 per month or less in this country, including dining out and in-country travel. An elegant dinner for two, including drinks, can cost less than $15. Plus, English is spoken by practically everyone, the scenery is stunning and the people are exceptionally friendly.

In addition, the Philippines offers the easiest path to permanent residency of any country in the region, and its retiree residency program comes with more benefits than any other country in this part of the world. Unlike Thailand’s retirement program, the Philippines program allows foreign residents to work or start a business. Once you have been granted permanent residency, you can stay in the country for as long as you want, and your visa never expires.

In addition to the ability to take a job or own a business, the retirement program also allows for the duty-free importation of up to $7,000 worth of household belongings, an exemption from airport travel taxes and other similar tax discounts and incentives. Further, you can leave the country and return any time you like without having to re-apply for residency.

Four types of special resident retiree visas are offered, starting with the SRRV smile program that allows you to remain in the Philippines for as long as you want provided you deposit $20,000 in a Philippine bank and keep it there for the duration of your stay. This visa is available to anyone who is 35 or older. There is no minimum income requirement.

You qualify for the SRRV classic visa program by depositing $50,000 in a Philippine bank or purchasing a condominium costing $50,000 or more if you are between ages 35 and 49. If you are age 50 or older, you need invest only $10,000, provided you have an individual pension of at least $800 per month. A couple must be able to show pension income of at least $1,000 per month.

Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group .

More from U.S. News

10 Retirement Lifestyles Worth Trying

The 10 Best Places to Retire on $75 a Day

How to Prepare for Retirement Overseas

The Perks of Retirement in Thailand and the Philippines originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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