From the Midwest redneck author of "The Rooster Crows at 4am!," "Lizard Poop!," and "The Philippines Expat Advisor"
More Older Americans Working. Why Not Retire to the Philippines?
The job market in America? It's tough. Some Americans have quit looking for work altogether. The number of Americans looking for work has declined in recent years except for those 55 and older. That's according to a recent report released by the Government Accountability Office as reported on a LifeInc. article from MSNBC which was brought to my attention by Lance the Canadian. 
The percentage of older Americans choosing to stay in the labor force, or get back in it, has steadily been rising over the past twenty years and even continued to increase over the course of the recession and recovery. 
About 40 percent of workers age 55 and over were working or looking for work in 2011, the GAO analysis found, compared to about 30 percent in 1990.
That’s in contrast to young and prime-age Americans, who have seen declines in labor force participate rates in recent years.
The study shows that the real increases are coming from some of the oldest workers. closer look at the data shows that the real increases are coming from some of the oldest workers. Phillip Levine, an economics professor at Wellesley University, noted that labor force participation among 55- to 64-year-olds has generally been flat in the last five years, at about 64 to 65 percent. (I fit into that age range; I retired and moved to the Philippines at age 57. I'm now 60.)
But for workers 65 and over, labor force participation has increased from 15.5 percent in 2007 to 18.4 percent now. Levine’s analysis was based on the Bureau of Labor Statistics data.
There are a number of potential reasons why the labor force participation rate has increased for people who we traditionally think of as being in retirement age.
One explanation may be that older workers are choosing to work longer to make up for investment losses and other financial woes as a result of the recession. Some people age 65 and older also may be getting back into the labor force because they can’t make ends meet on Social Security and retirement savings. Count my Dad, who lives in Las Vegas and will be 80 this coming August, in that group.
The GAO report said other factors keeping older workers at work may include better health and life expectancies, the increasing number of older women in the labor force and the need to stay at work to retain health benefits.
That a larger chunk of older people are working doesn’t diminish how tough the recession has been on people aged 55 and over, Levine notes.
The article goes on to state that although the unemployment rate for older workers has generally been lower than the broader population, a job loss in that age range can be particularly devastating. That’s because it generally takes older workers longer to find a new job, and that long gap in employment just before retirement age can have a harsh impact on their retirement plans.
Levine, who has done extensive research into older workers and the recession, said many people in that age range are “limping across the finish line.” The National Employment Law Project noted that many older workers face the double-whammy of a big employment gap and a resume that gives away their age. Both can be a turnoff to some potential employers.
So with more older Americans working, why not retire to the Philippines? Now I'm not recommending that you pack your Carpenters' cassette tapes and hop on (if you can) the next PAL flight to Manila. If you do not have a guaranteed source of monthly income such as a Social Security pension, DO NOT GET ON THAT PLANE!
We've discussed the topic of finding a job in the Philippines in a previous post. If you think you can move to this archipelago of 7,107 islands and find employment in your senior years, let alone any age, put away that crack pipe right now!
Let me clue you in. If you're over 30 years of age in the Philippines, your chances of finding a job, even if you're a Filipino, are next to none, let alone some old geezer foreigner (like I am) trying to find a job in the Philippines.
BUT if you DO have a decent income from Social Security or some other pension plan, you could retire to the Philippines and live a comfortable lifestyle. How much is a "decent income?" That depends on the lifestyle you choose to live and the location you end up in.
Let's throw in one more extremely important factor into the mix: RELATIVES. If your asawa or girlfriend expects you to support her family, extended family, and her slightest acquaintances, you had better have a little talk with her. You need to pull a Barney Fife and "NIP IT IN THE BUD!"
Make clear to your loved one what means of support you are able and willing to supply. But if you have unlimited funds and don't mind being sucked dry, just slap that "ATM" on your forehead right now.
But back to how much money would you need to retire to the Philippines. Can you survive on the $250 a month salary that my Peace Corps friends in Guimaras live on. Extremely doubtful.
How about $1,000 US Dollars a month. Possible, but not, in most instances, the Metro Manila area.
My asawa and I are doing OK on less than $1200 a month. That includes the $140 a month rent we pay for our two-bedroom rental home in our subdivision outside of Iloilo City. Our income will more than double once I can tap into my Social Security pension in early 2014 (and hopefully will still be in existence.) We will be living quite comfortably at that time.
But if you're tired of working and looking for a new adventure, check out the Philippines. My eBook, "Expat Guide to the Philippines," can help you plan that move. Life's too short. I was ready for a change, and I'm happy to spend my retirement years with my beautiful asawa in the Philippines. There's plenty of room for you here, too. You can make the change. It's all up to one person: YOU!
Okay, I’m convinced. I’m coming!
We’re ready for you, Randy!
I’m ready for me!
I savor every day I’m here, Randy. Going on three years this coming July. Wouldn’t trade the last three years for anything.
You should be fine for Social Security. Younger folks will be screwed as SS will only be able to pay 70% of benefits in the future. Why Obama lowered the SS payroll tax is baffling to me. Now, I’m for lower taxes in general; but, call me crazy, if SS coffers are set to go empty sooner than expected, why decrease the amount going in? Better to lower the income tax instead. But I digress…
I can not stress enough to those wanted to retire in the PHL, to think with the head above the shoulders when choosing a wife. It will make your life and transition to the PHL so much easier. A good wife will manage your finances well, help you navigate the culture, and run interference with her family. Thankfully, my wife has no siblings and her extended family includes numerous OFW taking care of their own so I’ve never been asked for money although I would have no problem giving money for the care of her parents.
As an aside, not having experienced the Kano as ATM phenomenon, I wonder if this is more likely among the old men who are marrying the young women barely out of their teens.
I wasn’t aware that Obama had lowered the SS payroll tax, Larry. I was under the impression it was going to be increased. Sounds like the upcoming election might have something to do with that. It just doesn’t make sense to me, either.
Good advice, Larry, for those considering retirement to the Philippines. When my asawa, who was 35 when we got married over 12 years ago, I was 47 at the time, and I got hitched, we had an agreement. She had worked for years as an OFW in Singapore and Taiwan supporting her family. I agreed that I would support her Mom, but the number of relatives we support grew to four more relatives living in her home in Guimaras.
As of last October, we supported no one but ourselves. We moved out of the home my wife had bought and paid for and now live in a a rental property in Iloilo. But now we have a nephew and niece from Guimaras living with us. I only agreed to have them stay with us past the summer vacation, if their Mom, working in Kuwait, sends support. She does. My wife knows I am sticking to this policy no matter what.
Is the AMT phenomenon more common, as you suggested, with the old guys marrying the girls barely out of their teens or still in their teens? Could be, although I have seen the ATM Kano covered in all age groups, at least among our contacts and relatives. Good input, Larry, thanks for the insight.
Yep, I already made the move 6 years ago and my only regret is, I didn’t make it sooner.
One thing I will add though, which I currently practice and certainly advocate especially here at my retiredpau.com site is, don’t just live on Social Security or whatever other ‘leavings’ the itch and famous leave on their used dinner plates for you … empower your own retirement. Stop working but don’t stop earning.
In addition to a modest incomer … or more if you work things right, you are guaranteed a healthier and happier retirement becuase seniors who don’t stop learning have healthier golden years and have a better chance of avoiding Alzheimer’s and other diseases that ‘steal’ one’s life before it is over.
The internet can make your mind healthier? Yes, indeed, it can.
Good advice, Dave. We’re relying on earnings we receive after I invested my lump sum check with my former employer AT&T after 30 years of service. With the additional Social Security income in the near future plus some income from this website, we’ll be in good shape. However, if we were still back in the States, I probably would have to have a part-time job where I actually work. And believe me, maintaining this website is not work by any means.
7 more days and my plane leaves LAX
We’ll be meeting you at the airport in Iloilo, Scott b. Got it marked down on my calendar. Have a safe trip.
I think the confusion on the SS tax decrease and increase is that there was a one year (2011) decrease of 2% which is reversed in 2012 and beyond.
Ok, got it, thanks Dave W for the info.
Dave, your advice is very timely and helpful to americans who are receiving SSS & company pension plan but having a hard time in U.S.A. Right now the banks are giving almost zero interest on retirees money. If they invest in treasury for 10 years, all they get is a measly 2% interest. That’s why the retirees are really suffering right now and their only recourse is to go back to work. You’re correct, to find a job at this market is really tough. A lot of newly graduates have no jobs and some of them are flipping burgers at Mc Donald and other fastfoods. Godbless.
Thanks for the info, Rey. My wife and I would both have to work if we would have stayed in the States. I just want to suggest to any future retirees out there that the Philippines is a great retirement destination, in my humble opinion. But the job market IS tough, so come prepared with some kind of guaranteed monthly income. And don’t forget the new Tourism slogan: “It’s more fun in the Philippines!”
Dave,
That 2% SS Tax Reduction is supposed to expire on December 31st this year unless it is extended by Congress. Have a nice day.
I will retire on my 55th birthday, I suppose I could get a a job as a walmart greeter “Welcome to Walmart!” But I think instead We will move to the Philippines and I can greet people at the door of our house and say “Walang Pera!” Much better alternative
Ok, thanks, PapaDuck. Thanks for keeping me posted.
I’m with you, Scott. I thought about being a Walmart greeter back in the States before we retired to the Philippines. Truth be told, I was encountering some grumpy greeters and wanted to show them how the job should be done.
Hi Dave,I like your site because it’s current.I am 64 and have SS and a pension.Based on what I read, money should not be a problem if I move to the Phils.Having never been there,I’m concerned about learning the culture as well as the little things of day to day living.If I came over for a recon,do you think I could find an expat to show me the ropes?
Thanks for checking out the site, Ken. If have a pension and SS you should be fine, you’re right. What area of the Philippines are you headed for? If you’re in the Iloilo City area, Panay Island, Western Visayas, we have a lot of expats, including myself, that could show you around. When do you think you might be making the move?
Hey Dave. Long time no comment. My asawa and I are back in Texas right now. We took Space A all the way from Korea to Texas, all free of charge. We’re trying to tie up some loose ends here now that we are more Philippines living savvy. Of course if I would have had a copy of a book like you offer, it sure would have been easier for us. We hope to be returning with an additional P14,000 per month income. We did have some problems in travel, that I have already put in a post. Could come in handy for you and others so you don’t fall into the same trap. I thought I’d be here eating beef everyday, but that is not the case, although I have had some. We’ll be back in July and I will be working on my website even harder than before. I’m going to try to make our very next trip to be Iloilo, so I hope you’re prepared. Tom needs to be aware too, because he’s making the lasagna.
Hi John J, good to hear from you! I’ve checked out the new website last week, looks great and loads lots faster. Hope you can get that additional income, P14,000 a month can help out. I’ll make sure I look at your new post. Have a safe trip back in July and look forward to meeting you. Take care.