Cebu: A retirement haven?

We will either retire from life early or might probably live long enough to be able to retire from work and enjoy the remaining years in royalty. Unfortunately for us though, retiring in style could be remote. However, other developed countries have generous retirement or pension plans and have pampered their senior citizens generously.  Thus, these countries’ retirees will only have one compelling decision to make, “where to retire”.

To this, the publication, Live and Invest Overseas, listed six top places for Americans to choose from. These are Chiang Mai in Thailand, Cuenca in Ecuador, Granada in Nicaragua, Hoi An in Vietnam, El Poblado, Medellin in Colombia and Cebu in the Philippines.  Well, it is noteworthy that we are mentioned in the same breath as the other five (5) known destinations.  This is so, because in 2009, in a survey made by the well-respected “International Living” (that was topped by Cuenca in Ecuador), Cebu was never cited at all.

While we totally agree with Cebu’s inclusion, good sense dictates that we should set aside biases and never right away salivate on the prospect that we will finally be in the foreign retirees’ radar.  It is necessary that we have to compare Cebu against an established destination, like Cuenca in Ecuador, for good measure.  Notably, retirees determine their preferred second home (according to the international living survey) based on the following:  (a) entertainment, recreation, and culture, (b) cost of living, (c) climate, (d) special benefits, (e) infrastructure, (f) real estate, (g) health care, and (h) safety and stability.  

On entertainment, recreation, and culture category, if Cuenca, Ecuador brags about having a new, modern shopping mall on the edge of town, theater, orchestra, and lots of good restaurants and cafés, obviously, Cebu isn’t lagging behind.  Moreover, if Cuenca, Ecuador, has one of the most beautiful and best-preserved colonial cities and a UNESCO World Heritage Site, Cebu has its own Sto. Niño Church and Fort San Pedro, etc.

On cost of living, obviously, retirees go for places that are much lower.  Again, as a point reference, a couple (retirees) in Cuenca, Ecuador,  live comfortably with this monthly budget:  (a) housing (rental of a luxury two-bedroom apartment) - US$500, (b) utilities (including, phone, Internet, and cable television) - US$150, (c) maid (twice a week) - US$60, (d) groceries - US$275, (e) maintenance and fuel for one car - US$140, (f) clothing - US$70, (g) entertainment (two people dining out eight times a month at top restaurants or other entertainment) - US$200, and (h) health care (four $30-visits to a doctor per year for two people, divided by 12 months) - US$20, for a monthly total of  US$1,415 or US$16,980 a year.  Looking at this monthly budget for a couple in Cuenca, Ecuador, Cebu is several notches lower as far as cost of living is concern.  With P20,000.00 (or roughly US$500), a couple can even rent a very comfortable  house in a subdivision. With P3,000.00 (or about US$75), they can  hire a helper, not just twice a week, but for a month.  Overall, with US$1,200 a month, a couple can live in Cebu in royalty.

Unfortunately, ownership of real properties, like land, remains a problem.  Cebu can’t do much about it since the prohibition for foreigners to own lands is a constitutional provision.  However, since foreigners are allowed to own condominium units, Cebu can do something about it by encouraging real estate developers to go for horizontal condominiums.  That way, while waiting for constitutional amendments, foreigners will enjoy that sense of ownership of their abode.     Moreover, on safety and stability, retirees take into account the peace and order situation of the country. With their embassies in place and internet right on their finger tips to inform, atrocities like the internationally condemned Maguindanao massacre will never pass them unnoticed.  

Indeed, in all these categories, we know where our shortcomings are. Apart from land ownership, the perennial peace and order problem in the south remains a big concern.  Though miles away, Cebu is still one of the islands in an archipelago we call Republic of the Philippines.  Thus, it might sound selfish, but for Cebu to succeed as a retirement haven, we should probably sell Cebu as Cebu or take former Gov. Lito Osmeña’s most successful sales pitch, “Cebu, an island in the pacific”.

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