PH urged to prepare for boom in global retirement market

THE PHILIPPINE property industry—buoyed in recent years by the business process outsourcing (BPO) sector boom and growth in overseas Filipino remittances—can find a new catalyst in the retirement sector as the global aging phenomenon explodes in the next five to 10 years, property consulting firm Jones Lang Lasalle (JLL) said.

The country, however, should start preparing now the infrastructure that will enable it to get its fair share of the global retirement market, David Leechiu, JLL regional director and Philippine country head, said in a briefing yesterday.

“Global aging population is going to exponentially jump very soon. That’s five years from now and if we’re in the Philippines, how do we take advan- tage of this market?” Leechiu said.

Between 2006 and 2030, the number of older people in less developed countries is projected to increase by 140 percent and in developed countries, by 51 percent.

“At some point, you will have economies getting crushed by aging population, which today everyone is taking for granted,” Leechiu said, noting that in five years, there would be more than 400,000 people hitting retirement age globally.

The Philippines, where quality healthcare is more affordable and with its vast pool of nurses and medical workers, is well-positioned to capture this market, he said.

In a briefing yesterday, JLL regional director Lindsay Orr said there were about 303 million people above age 65 in Asia based on July 2013 data, 119.9 of whom were in mainland China.

The Philippines’ advantage over other Asian countries, Orr said, was that it was among the three countries in the region with the lowest cost of living. In this market, he said the currency exchange rate was favorable while housing and labor expenses were low.

The special resident retiree visa (SRRV) visa offered by the Philippines allows retirees to settle in the country for as long as they want. Most enrolees for the SRRV visa at present are from mainland China (30 percent).

Other factors going well for the Philippines are the inherent Filipino hospitality, the country’s natural attractions like beaches, tropical climate and its Englishspeaking people.

Top retirement destinations in the country are Baguio, Cebu, Dumaguete, Clark, Davao, Tagaytay and Subic. In Metro Manila, Makati is noted as the top choice of foreign retirees.