Retirement is getting pricier at home, yet there’s a place where two people can live well on less than a London council tax bill. The country that just ranked No. 1 for affordable retirement is closer, friendlier and sunnier than you might think.
A British couple in their sixties compare notes about yesterday’s island ferry while a tricycle buzzes past like a lazy bluebottle. They’re swapping tips on rent, visas and which market stall sells the sweetest mangoes.
Across the street, a pharmacist opens early, a sign for blood pressure checks taped to the glass. The air smells faintly of diesel and coconut rice. A coconut vendor laughs when the Brit tries a few words in Tagalog and replies in perfect English.
They pay the bill with small notes, wave to the barista, and wander towards the boulevard, hand in hand. The price tag will surprise you.
The Philippines has just taken the affordability crown
Recent global retiree rankings put the Philippines at No. 1 for affordability, and it isn’t a fluke. Housing, food, transport, healthcare and mobile data all undercut typical UK prices by a long stretch. **A couple can live in the Philippines on less than £900 a month without skimping on joy.**
In mid-sized cities like Iloilo, Dumaguete or Davao, a modern one-bed flat with air-con hovers around £220–£320. Groceries for two come in at roughly £200–£250 if you cook often and shop local markets. A doctor’s appointment can be £8–£15, and a 100 Mbps fibre connection sits near £25 a month.
Those numbers don’t mean “bare-bones only”. They reflect a sweet spot where your money stretches because labour and rents are cheaper while daily life is simple. English is widely spoken, cash and contactless coexist, and fruit is seasonal and dazzling. The numbers sound unreal until you price a week’s groceries at a wet market.
What “under £900” actually looks like
Picture a sensible monthly basket: £260 for rent in a clean walk-up near a hospital, £60 for utilities and fibre, £230 for groceries, £130 for cafés and simple meals out, £40 for transport, £120 for health cover or a contingency pot, and £50 for extras. That’s roughly £890. Let’s be honest: nobody actually does that every day.
You’ll have months with a ferry to Siquijor, a new pair of sandals, or a dental cleaning. Then you’ll have quieter months where you cook adobo, stream a film, and your spend dips to £780. The trick is choosing the right city, not the cheapest room. **The sweet spot is mid-sized cities where rents stay low and hospitals are within a 15-minute taxi ride.**
We’ve all had that moment when a bill lands and your stomach sinks. In the Philippines, the same feeling fades after the second shop. A kilo of rice: £1.20. A basket of vegetables: £3–£4. Two decent fish: £4–£5. Local SIM with 20GB: £3.50. It’s the accumulation—everyday costs that stay small—that makes the math sing.
Where the savings really happen
Start with housing. Skip the glossy expat towers at first and test a local neighbourhood for a month. Ask for a “fully furnished, one-bedroom, near the hospital” and view three options at daylight. Many landlords will include Wi-Fi or throw in a discount for a six-month lease if you pay quarterly. Snap photos, note power meter readings, and always ask about water pressure.
Food is your second lever. Build your week around staples—rice, eggs, chicken thighs, greens, bananas, pineapple—and top up with market finds. Eat out where the locals queue, not where travel blogs pose. A hearty bowl of batchoy in Iloilo or a grilled pork belly plate in Davao is £1.50–£3. Western imports bite harder, so treat them like treats.
Your budget’s guardrails come from three decisions: location, healthcare, and how often you island-hop.
“We spend more on fresh fruit and less on wine. Our rent is half what we paid in Leeds. The bay view? That’s a bonus we never budgeted for.” — Ruth, 67, living in Dumaguete
- Pick a mid-sized city: Dumaguete, Iloilo, Baguio, Valencia (Negros), or Tagaytay for cooler air.
- Choose a hospital within a short taxi ride and a neighbourhood above known flood lines.
- Travel off-peak, and make ferries your friend—flights add up fast.
Visas, healthcare and the real-life details
Paperwork first. The Special Resident Retiree’s Visa (SRRV) is the Philippines’ marquee option for long stays, handled by the Philippine Retirement Authority. For many retirees aged 50+, it pairs a modest dollar deposit with proof of monthly pension income, granting multiple-entry privileges and the right to stay indefinitely. Rules evolve, so check the latest categories and deposits before you fly.
Healthcare is a blend: capable private hospitals in Manila, Cebu and Davao, decent regional clinics, and smaller outposts in provincial towns. Many expats join PhilHealth for low-cost coverage and add a private or international plan to cover emergencies. Keep a “hospital fund” line in your budget. It’s boring until the day it isn’t.
Safety and weather are practical rather than scary. Stick to well-lit neighbourhoods, lock doors, and lean on local advice about areas to avoid. Typhoons are seasonal, so learn your building’s flood history and keep a small go-bag. Taxis and Grab are cheap; intercity coaches are comfortable; ferries are scenic and slow. Your diary fills quickly, then gently.
How to land softly on less than £900
Come for 60–90 days with a trial budget. Rent month-to-month, cook most meals for two weeks, then tally everything and adjust. Track spend by category on your phone for one full cycle, then lock in a six-month lease in the area that feels right. The simplest method wins: pay rent on the same day each month, set three standing pots—food, healthcare, fun—and move on with your day.
Beware the sneaky budget leaks. Imported cheese, craft beer, and weekly domestic flights will torch your savings. Restaurants aimed squarely at tourists will too. Your future self will thank you for learning three dishes well, finding one market vendor you trust, and choosing a neighbourhood café where the barista knows your name by the second week.
Local voices echo the same playbook:
“Buy where the aunties buy, live where the nurses live, and you’ll never feel short,” says Leo, a retired engineer in Iloilo.
- Budget target for two: £800–£950 with travel, £700–£850 if you stay local.
- Baseline monthly: Rent £220–£320; Utilities/Internet £50–£70; Groceries £200–£250; Eating out £100–£160; Transport £30–£60; Health cover/contingency £100–£150.
- Quality-of-life boosts: a fan, blackout curtains, a water filter, and a decent office chair.
What you gain when the meter stops running
Lower costs buy something bigger than savings: time. Time to wander wet markets without rushing, to take language classes, to swim at sunrise and nap in the heat of the afternoon. You notice how neighbours swap dishes across fences, and how a storm moves like theatre across the bay.
The Philippines rewards routine. A midweek curry night with friends, a Friday ferry, a Sunday call to the grandkids on fast fibre. You measure life in mango seasons rather than council letters, and your calendar breathes with the weather. The rest is background noise—waves, scooters, chatter, laughter.
No one pretends it’s perfect. Power cuts happen, traffic can be giddy, and visas demand patience. The trade-off is a life where your money buys room for mistakes and still leaves space for joy. On a clear morning, with coffee and the sea right there, the maths and the meaning add up.
| Point clé | Détail | Intérêt pour le lecteur |
|---|---|---|
| Affordability rank | Philippines named No. 1 for affordable retirement in recent global surveys | Confidence that the cost base is proven, not fringe |
| Sub-£900 budget | Sample monthly basket: rent, utilities, food, transport, healthcare | Concrete roadmap to hit a realistic target |
| City selection | Dumaguete, Iloilo, Davao, Baguio, Valencia, Tagaytay | Places where value meets hospitals, community and comfort |
FAQ :
- Can two retirees genuinely live on under £900 a month in the Philippines?Yes, in mid-sized cities outside the priciest expat enclaves. Keep housing sensible, cook often, and you’ll land around £800–£900 without feeling deprived.
- Which cities are best for value and healthcare access?Dumaguete and Iloilo for friendly scale, Davao for big-city services and parks, Baguio or Tagaytay for cooler air, Cebu for specialist hospitals and flights.
- What visa should I look at first?The SRRV via the Philippine Retirement Authority is the flagship. Requirements vary by age and pension; always check the latest official guidance before applying.
- How does healthcare work for expats?Mix PhilHealth for basics with a private or international policy for bigger events. Keep a small emergency fund and know your nearest private hospital.
- Will I need to speak Filipino?English is widely spoken, especially in cities and hospitals. Learning a few phrases earns smiles and better prices at the market.
