The Philippines as

Retirement Haven
for Baby Boomers

PHILIPPINE
RETIREMENT
AUTHORITY
29 / F CITIBANK TOWER
PASEO DE ROXAS, MAKATI CITY
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I. Baby Boomers
Population Project of Select Countries (thousands)
Year
Area Age
2010 2025 2050
35-59 497,095 534,784 408,766
China 60-Above 165,153 281,597 439,207
Total 662,248 816,381 847,973
35-59 42,583 40,504 27,888
Japan 60-Above 38,544 43,600 45,005
Total 81,127 84,104 72,893
35-59 18,873 18,123 12,863
Republic of Korea 60-Above 7,574 13,680 18,321
Total 26,447 31,803 31,184
35-59 105,625 105,828 116,607
United States of America 60-Above 57,165 85,172 107,239
Total 162,790 191,000 223,846
35-59 432,578 428,663 369,340
Europe, Northern America,
60-Above 268,761 350,298 418,327
Australia/New Zealand and Japan Total 701,339 778,961 787,667
Source: United Nations, Department of Economic and Social Affairs - Population Division, Population Estimates and Projections Section
(http://esa.un.org/unpd/wpp/unpp/panel_indicators.htm)
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3
Note: The dotted line indicates the excess male or female population in certain age groups. Age groups are in millions.
Source: United Nations, Department of Economic and Social Affairs, Population Division (2011): World Population Prospects: The 2010
Revision. New York
(http://esa.un.org/unpd/wpp/population-pyramids/population-pyramids_absolute.htm)
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A STUDY ON RETIREMENT REVEALS
THAT…
A. World-wide Attitude towards Aging: POSITIVE
B. Readiness of Countries to Demographic Change: NOT READY
C. Traditional Structures of Care for Elderly: CHANGING
_____________________________________________________________________________________________________________________________ _

FACT : In 25 years, persons age 30 and older

will be 99% of Asia’s population
FACT : Age 65 and older are the fastest
growing group

Source: “The Future of Retirement” – a study commissioned by HSBC to examine attitudes towards ageing and retirement
in ten (10) societies that together contain half of the world’s population.
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WHAT OUR TARGET MARKETS
SAY…
JAPAN : Time for good health, family considerations and
continued fulfillment from work

SOUTH KOREA : 92% of women surveyed said they do not want to

live with their children in old age

CHINA : Older generations want to stop working and relax;

but the family is central

Sources: The Future of Retirement – a study commissioned by HSBC – to examine attitudes towards ageing and retirement in ten
(10) societies that together contain half of the world’s population; “As Asia’s Population Ages, Worries Grow about the Future,”
Andrew Mason, Sang-Hyop Lee, Gerard Russo, East West Center
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II. Why the Philippines

THE WORLD
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State of the Art Medical facilities and World
Class Healthcare Service Providers

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Tropical Climate and Natural Attractions

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Affordable Cost of Living and Amenities

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III. Philippine Retirement Authority

VISION

To make the Philippines a globally competitive

and preferred retirement destination in Asia.

MISSION

Provide excellent and world-class services centered

towards customer-valued quality of life that is easy,
pleasant and beneficial to foreign retirees and
global Filipinos, as a channel of accelerating the
socio-economic development of the country.
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04 July 1985 31 Aug. 2001 12 May 2009
E.O. 1037 E.O. 26 R.A. 9593

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The PRA Organization

RESIDENT RETIREE
CORPORATE SATELLITE
SERVICING MARKETING
RESOURCES OFFICES
CENTER (RRSC)

Processing Division Client Relations Admin Division Baguio City

Division
Servicing Division Retrement Inst. Clark
Marketers’
Finance Division Angeles, Pampanga
Investment & Management Unit
Monitoring Group Subic
Ads & Promo Co-Invest. Fund Olongapo, Zambales
Special Concerns Division Corporate Planning Cebu City
Unit
Web Marketing LIRA/RADAR
SWS Contact Center Davao City
Social Dynamics Accreditation &
Group Franchising

Recreation & Reg. of Facilities

Therapy Center Info. & Tech. Group
(RTC) 13
Our Core Product: Special Resident Retiree’s Visa

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SRRV Benefits
1. Option to Reside Permanently
2. Multiple Entry Privileges
3. Exemptions from:
 Bureau of Immigration ACR I-Card
 Alien Registration

 Emigration Clearance Certificate (ECC)

 Re-Entry Permit (RP)

 Special Return Certificate (SRC)

 Customs Duties and Taxes with regard to the importation of

household goods and personal effects up to US$7,000.00;
 Tax from pension and annuities;
 Travel tax, if stay in the Philippines is less than one year from the
last entry date;
 Student’s Visa/Study Permit;
 Return Ticket.

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SRRV Benefits

4. Assistance in securing documents from other government

agencies. These include, but are not limited to:
*Alien Employment Permit (AEP) from the Department of
Labor and Employment

*Driver's License form the Land Transportation Office

*Tax Exemption / Extension Certificate from the Department

of Finance

*Tax Identification Number (TIN) from the Bureau of Internal Revenue

*Clearance from the National Bureau of Investigation (NBI)

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SRRV Benefits
5. Availment of the Greet & Assist Program;
6. Free subscription of the PRN (PRA Newsletter);
7. Social Dynamics
Lakbay Saya Tour (Educational , Cultural & Informative Tour)
Community Immersion - Medical/Dental Missions /
Outreach Programs
Fun Activities – Beach Bash, TV Network Tours, Fun Run /
Walk
-----------------
8. Use of the Services with a Smile (SWS) Contact Center
9. Use of the Recreation and Therapy Center (RTC)
10. Avail Services of the Retirement Institute (RI)

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SRRV Options
SRRV SMILE
(Non-Convertible)
Regular
Active Retirees
Retirees
SRRV CLASSIC
(Convertible)

Former Diplomats
Former Filipino SRRV Courtesy

Ailing SRRV
Retirees Human Touch

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 SRRV SRRV SRRV CLASSIC SRRV HUMAN
OPTIONS SMILE TOUCH
For Active/ For Active/ Healthy For Ailing
Healthy Retirees Retirees Retirees

Age 35 y.o. & above 35 to 49 y.o. 35 y.o. & above

Qualification = US$20,000.00 = US$50,000.00 = S$10,000.00
& Visa 50 y.o. & above
Deposit
= US$20,000.00
= US$10,000.00
PRA
Designated Development Bank of the Philippines
Bank(s)

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 SRRV SRRV SRRV SRRV
OPTIONS SMILE CLASSIC HUMAN TOUCH

Age 35 y.o. & above 35 to 49 y.o. 35 y.o. & above

Qualification & = US$20,000.00 = US$50,000.00 = US$10,000.00
Visa Deposit 50 y.o. & above
= US$20,000.00
= US$10,000.00

Convertibility *Inconvertible *Convertible to *Inconvertible

of Deposits *Locked-In with Active Investment *Locked-In with
the PRA in RFO Real Estate the PRA
Designated Bank Properties Designated Bank
*Intended for End *Investment value *Intended for End
of Term must be at least of Term Obligation
Obligation US$50,000.00

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 SRRV SRRV SRRV
SMILE CLASSIC HUMAN TOUCH
Documentary Requirements: Additional
• SRRV Application Form Requirements
• Original Passport with Valid Entry 1) Health
• Medical Examination Clearance Insurance
• Police Clearance (from country of origin) & Policy
2) Pension
National Bureau of Investigation Clearance
Documents
• ID Pictures (12) pieces 2”x2”
• Proof of Relationship for joining DEPENDENTS
• Pension Documents for SRRV Classic Applicants
under the with Pension Scheme (US$10,000.00)
Upon reaching 35 years old, the SRR Visa of the Dependent will be
automatically cancelled – unless dependent will join as a
PRINCIPAL Retiree
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 SRRV SRRV SRRV
SMILE CLASSIC HUMAN
TOUCH
Dependents Principal may be enjoined by Dependents Principal may be
(Spouse/Children). If more than two (2), enjoined by one
additional Visa Deposit will be required (1) dependent

Application Principal Applicant US$1,400.00

Fee Dependent US$300.00
(one time processing fee)

Yearly Renewal of PRA ID Card

Obligation Update Status & Contact Information
Payment of the PRA Annual Fee (PAF) US$360.00
(additional US$100.00 for each dependent in excess of two)
*PAF is payable upon enrollment & every year thereafter

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 SRRV COURTESY
Former Diplomats / Ambassadors
Former Filipino Citizens
Age Qualification : Former Filipinos - 35 years old & above
Former Diplomats – 50 years old & above
Visa Deposit: US$1,500.00
Additional Deposit for Additional Dependent/s is only applicable
to former Diplomats/Ambassador
Documentary requirements for joining applicants are the same
with those documents for SRRV SMILE and SRRV Classic
Yearly Obligation: Renewal of PRA ID Cards
Update of Status & Residence & Contact nfos
Payment of the PAF - US$10.00/retiree

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IV. Developments and Business
Opportunities in Setting-up &
Operation of a Retirement Village
IV.A. Tourism Infrastructure & Enterprise Zone Authority (TIEZA)
With TIEZA Republic Act 9593
• Location of PRA-accredited retirement communities and facilities in
“General Leisure Tourism Zones”, “Health and Wellness Tourism Zones”,
And “Mixed-used Tourism Zones” designated by TIEZA

• An endorsement from the PRA , as one of the TIEZA documentary

requirements in designating a “Tourism Zone”

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 Incentives WithinTourism Enterprise Zones
Fiscal Incentives to TEZ Operators Non-fiscal Incentives to TEZ Operators
& Registered Tourist Enterprises & Registered Tourist Enterprises

Income Tax Holidays Employment of Foreign Nationals

Income tax exemptions from the beginning of business In executive, supervisory, technical or advisory positions
operations for a period of 6 months-extendable for reasonable period, provided by the TIEZA Board

Gross Income Taxation Special Investor's Resident Visa (SIRV)

5% tax payment on gross income in lieu of Residency of foreign nationals based on the subsistence of investment
national and local tax exemptions, license fees, imposts in the Philippines of at least USD 200,000.00 in a TEZ
and assessments or Registered Tourism Enterprise

Capital Investment Equipment Foreign Currency Transactions

100% exemption from all taxes and duties on importation Repatriation of investment of proceeds of the liquidation of investments,
of capital investment/equipment provided that these are directly remittance of foreign exchange, and foreign loans and contracts
and actually needed and exclusively used by the enterprise
Requisition of Investment
Transportation Equipment and Spare Parts No requisition of the property of the TEZ Operator/Registered Tourism
Exemption from customs duties/taxes provided they are not Enterprise except in the even of war or national emergency, and only
manufactured domestically, in sufficient quantity, comparative for the duration thereof
quality, and at reasonable price
Lease and Ownership of Land
Goods & Services Lands and buildings in each TEZ may be leased to foreign investors
100% exemption from all taxes and duties on all imported
goods actually consumed in the course of services rendered
by the enterprise, except imported goods imported for the
operating a wholesale/retail establishment to compete with the
Duty Free Philippines Corp (DFPC)

Social Responsibility Incentive

50% tax deduction of the cost of environmental protection
or cultural heritage preservation activities 25
Incentives Outside of TEZs

Only existing accomodation establishment outside of TEZ

shall be entitled to claim

Income Tax Holiday up to 6 years for substantial

expansion/upgrade of costs amounting to least 50% of original
investment

Tax free importation of capital equipment necessary for

expansion renovation, or upgrade

Other Tourism Enterprises may avail of incentives under the

Omnibus Investments Code provided

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IV.B. Board of Investment (BOI)

Latest Development from the BOI

Memorandum Order No. 20 was signed last July 05, 2011

approving and identifying enterprises engaged in developing
retirement villages under the Tourism-preferred activities, as one
of President Aquino’s Priority Investment Areas for 2011

Source: www.boi.gov.ph

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IV.C. Philippine Economic Zone Authority (PEZA)
PEZA Resolution No. 06-513 – Business Opportunities in Operating
Retirement Villages

• Encourage and support investments in retirement-related business

activities
• Establish and operate retirement economic zones as locations for
retirement-related businesses
• Implements the guide in registering Retirement Ecozone Facilities/
Enterprises, Parks/Centers, and Developers/Operators

Source: PRA Accreditation Guide

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PEZA Resolution No. 06-513

Retirement Retirement Retirement Retirement Ecozone Retirement Ecozone

Ecozone Ecozone Park Ecozone Developer / Facilities / Enterprise
Center Operator

Location Estate in PRA Estate in PRA Estate in PRA Priority Estate in PRA Priority Estate in PRA Priority Areas
Priority Areas Priority Areas Areas Areas
Landholding Rights Management and Management and Proof of Ownership
Operation Operation
PEZA Registration A new or existing A new or existing
- complex with a complex with a min. of - -
min. of 4 hectares 5,000 sqm. for Metro
in a PRA Priority Manila and 2,000 in
Areas Cebu under a PRA
Priority Areas
Incentives (Fiscal) 5% tax on gross (Fiscal) 5% tax on
- - - income gross income
(Non-fiscal) (Non-fiscal)
Employment of foreign
nationals and SIRV Employment of
foreign nationals and
SIRV
Registrable PRA endorsed PRA endorsed and PRA endorsed and - -
Activities and recommended recommended activities
recommended activities
activities

Source: PRA Accreditation Guide

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IV.D. Incentives as a PRA-Accredited Retirement Facility

Be advertised for FREE in different PRA Media

Website
Philippine Retirement News
Flyers / Brochures Display at PRA Offices
Promotional presentations

Automatic accreditation as marketer, and entitlement to a Waiver Scheme

of the Marketer accreditation fee of US $300 for the first year
Promotion of the Retirement Program locally and abroad
Opportunity to join PRA’s Marketing Sales Missions

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IV.E. Information for Potential Retirement Village Operators

The decision process of retirees to age in place or relocate relate

to push and pull factors - and satisfaction with relocating retirees
is higher.
Survey shows that the push factors relate to:
1. change in lifestyle,
2. home maintenance,
3. social isolation, and
4. health and mobility,
whereas the pull factors relate to:
1. built environment and affordability,
2. the locational attributes of villages, and
3. the desire to maintain an existing lifestyle.
Source: Stimson R J, McCrea R,
2004, envplan.com
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Elderly movers are seeking help with activities of daily living (ADLs)
such as bathing, dressing, and walking or instrumental activities of
daily living (IADL) such as preparing meals and doing housework

Facilities that offer access to medical services, transportation,

and shopping while providing housekeeping and personal care
services along with social activities appeal to better-educated
people age 55 and older

Source: Planning to Move to Retirement Housing

K.M. Gibler et al. / Financial Services Review
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Housing Planning
• Studies indicate that most older people are NOT prepared
to make an informed choice because they are unfamiliar
with their housing and care options.
• Few have any personal experience with seniors’
housing beyond visiting relatives or friends in nursing
homes.
• Older consumers who have heard of seniors housing options,
many have misconceptions

• The lack of knowledge and understanding of seniors

housing options extends to the elderly’s children.

Source: Planning to move to retirement housing

K.M. Gibler et al. / Financial Services Review
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Housing Options

• Independent Retirement Housing (Active Adult or Retirement Communities)

- open to seniors-only single-family houses, condominiums, or rental
apartments
- provide no personal services but offers amenities and recreational
facilities such as golf courses.
• Congregate Housing
- open to independent rental apartments with access to a common
dining facility.
- with housekeeping, recreation, and transportation services
- residents must be healthy enough to care for themselves and use
outside medical services.

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• Assisted Living Facilities (also called Residential Care, Board and Care, or
Sheltered Care)
- designed for frailer residents
- with private or semi-private rooms with access to central dining and
activity rooms.
- include meals, assistance with ADLs and IADLs, security, emergency
call system, transportation, medication management, laundry,
housekeeping, and social programs..

• Custodial Care
- skilled nursing facilities provide 24-hour-a-day nursing and
medical care to residents.

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• Continuing Care Retirement Community
(CCRC) or Lifecare Community
- offers a range of living units from independent to skilled nursing
facilities often at one location
- residents enter the independent units when in good health, but
remain and move to more supportive housing within the facility
when additional services are needed.

Source: Planning to move to retirement housing

K.M. Gibler et al. / Financial Services Review
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V. Other Information
V.A. Top 10 Nationalities from 1985 to April 2011

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 V.B. Enrollment 1985-2010
11501

12000

10000 YEARS TOTAL

1985-1990
8000 1985-1990 1,106
4612 1991-1995

6000 1996-2000
3294
1991-1995 2,984
2984
2001-2005
4000
2006-2011 1996-2000 3,294
1106
2000
2001-2005 4,612
0
TOTAL
2006-2010 11,501

TOTAL 23,497

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V.C. Lessons Learned from Retirement Village Operators

• A strong understanding of the global phenomenon of aging &

retirement and its consequences

• Project must be born out of concern for the elderly

~ A team of dedicated and highly-trained medical and allied-medical

professionals
~ Capitalize on the Filipino’s natural warmth & innate hospitality

• An ideal location for business

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V.D. Lessons Learned from “Not So Successful” Retirement Projects

• An understanding that elderly needs may vary according to nationality

or culture but remains rooted to care and wellness

• An ideal location for the business

• A progressive plan to sustain the nature of business –health and continued

care for the elderly

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VI. PRA Proposed Legislation for
Retirement-Related Facilities
• Endorsement of a bill to regulate retirement-related accommodation
~ to minimize the abuses and mishaps among the elderly and the retired public
~ to increase retirement migration to the Philippines (or enrollment of SRRV
through the PRA)
~ to promote business opportunities, development and management of
retirement accommodation facilities without sacrificing the protection and
welfare of the elderly and the attractiveness and competitiveness of the
Philippines as a retirement haven
• Inclusion of retirement franchising as a free-market tool and as a mode to
implement standards of the proposed bill (to include profit incentives and
diffusion of standards in a comprehensive system).

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 THANK YOU!
PHILIPPINE RETIREMENT AUTHORITY
29th floor Citibank Tower, 8741 Paseo de Roxas, Makati City
Tel. No. 848-1418, Fax No. 848-1411

Services With a Smile, SWS

750-0007
www.pra.gov.ph

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