Pensions Best Posts in Thread: Military Retirement - Living in the Philippines

Billybob · Mar 27, 2016

I spent 20 years in the Air Force and retired E-7. I found it very easy to live in the Philippines on my retirement. Of course 30 people living here would have 30 budgets. A single guy living here who doesn't bar fine or party everyday should be able to live on $1000 USD no problem.

robert k · Mar 28, 2016

nwlivewire said: ↑

I retired out as an E-7 - and fell under the "old" military retirement calculation system called the "Final Pay" calculation system. That retirement system was changed to a lesser retirement pay calculation system called "High Three". High Three has been in use for retirement pay calculations for all those who entered/signed a military service contract on or after September 8, 1980. I was one of those lucky ones as the military DFAS system had to pay my retirement under the old (better) retirement pay system as my contract signing date of my very first military enlistment contract was before September 8, 1980. This was just another "little thing" I had to fight DFAS about when I disability retired after 20 active years of service, but it did make a difference on my retirement pay amount (+ 3.5% -- enough to pay the monthly utility bills). The pay office (DFAS) had "no record" of my first term of enlistment (funny how they had every contract BUT that first one), so I had to locate official copies of those documents (through a military archive system which took three months) and prove my eligibility for "Final Pay" calculations (just another little "nickle and dime" card trick "the system" can play on you if you don't read/know the laws and don't hold their feet to the fire). By the time the dust was settled on just this one issue, I got a "retro check" for the 6 months difference in back retirement pay owed to me and they had to bump up ("re-adjust") my monthly retirement pay.

My military retirement pay is 70% exempt from Federal tax due to my being parted out on disability retirement with 20 years and the Army military medical disability board granting me this percentage of service-connected disability. 30% of my military retirement pay falls under Federal taxation rates. But this will soon change (I hope).

I ought to have been eligible for another retirement benefit called CRSC, but have not claimed it until now. So I figure once the CRSC decision makers see the documents I will be providing to them, they will have to "retro check" me all the way back to JAN 28, 2013 -- and those retro checks will all be in a 100% tax free status. Hopefully, this will happen this year and I can pay everyone off with this money I'm owed, and then leave for the Philippines.

It's one thing if you had a "normal" 20 year and out retirement with no disabilities incurred while in combat zones, or had not incurred combat-related injuries. But it can be another expensive nightmare of a goat-rope if you have incurred permanent disabilities during your service career in combat zones and/or have combat-related injuries.

"Let The Games Begin!"

(Where is that "Kraken" when you need one?)

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I did a cost-of-living estimate using these two web sites, but not sure just how accurate or up-to-date they are.

Expatistan figures for Dumaguete City are these: Cost of Living in Dumaguete City. Updated Prices Mar 2016.

Numbeo figures for Dumaguete City are these: Cost of Living in Dumaguete. Prices Updated Feb 2016

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Went to Living in the Philippines and checked their C-O-L reports.

So it seems like somewhere between 35k-50k PHP appears to be the typical range for C-O-L around the Duma area.

At current exchange rates, this can be a doable and livable place for most expats on a budget.

Is this a realistic figure in 2016 for Duma?

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PLEASE (pretty please!) I would love to read what THIS forum reports on Cost of Living in Duma - to include rental info as I don't have a spouse (can't buy), so I will have to include rent into my budget.

V/R,
nwlivewire
Click to expand...

Single person? No problems at 50k. Bring all the electronics (excluding the big screen and appliances) you will need with you. Allow between 2.5k USD to 5K USD for getting settled money, as you can spend that much just moving across town much less the other side of the world. From what you have said elsewhere, finding a reliable vehicle at the right price is probably the biggest problem you face. A used, needs nothing car is really expensive on Negros for what you are getting in my personal experience.

Rye83 · Mar 27, 2016

cabb said: ↑

Excuse my ignorance, but the only ex-military guys I knew that had a good pension were lt. colonels and above and had put in 20 years. That still puts the minimum age around 42 since you had to have 4 years of college prior to enlisting. Is it possible for enlisted men to retire after 20 years and live comfortably in the Philippines?
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The charts below are estimates for an E-7 that served 20 years in the military (I selected a 28% tax rate in the calculator....which seems kinda high IMO):

Note: this retirement could be achieved before a person hit their 38th birthday.

I don't know about everyone else but I could live in the Philippines off that. Wouldn't be living like a king.....but it certainly could be done. FYI: The numbers above are just for retirement. Most who serve 20 years in the military will have some level of disability check coming on top of this (if they are smart enough to make a claim).

Rye83 · Mar 30, 2016

nwlivewire said: ↑

VA disability compensation is non-reportable -- you do not claim this as reportable income on your IRS tax return.

Post 9/11 GI Bill Stipend money is considered non-reportable for IRS tax purposes
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Good news on both accounts for me. Going to start another thread explaining why.

DGTXPAT · Mar 27, 2016

That seems good for Phil but definitely welfare case in USA with that income. How much do the veteran benefits add to that monthly salary(medical etc) ? I had spent some time a while back trying to calculate what I would need to pack up and live in the Philippines per month. The figure was very high because I still have obligations financially here in US ie: child support,college expenses,loans etc. But without that I am sure 1500 a month would be more than enough for me and the family. I am curious what other members may spend monthly to live in Philippines. Perhaps an anonymous poll might be worth a thought?

I don't know about everyone else but I could live in the Philippines off that. Wouldn't be living like a king.....but it certainly could be done. FYI: The numbers above are just for retirement. Most who serve 20 years in the military will have some level of disability check coming on top of this (if they are smart enough to make a claim).[/QUOTE]

robert k · Mar 26, 2016

cabb said: ↑

Excuse my ignorance, but the only ex-military guys I knew that had a good pension were lt. colonels and above and had put in 20 years. That still puts the minimum age around 42 since you had to have 4 years of college prior to enlisting. Is it possible for enlisted men to retire after 20 years and live comfortably in the Philippines?
Click to expand...

That goes back to the eternal question of how much is enough which is a question that nobody can answer for anybody else.

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Pensions Best Posts in Thread: Military Retirement - Living in the Philippines

Billybob DI Junior Member Blood Donor Veteran Air Force

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