Brexit and living abroad

[stevewool]

A few months back when more people voted to leave the EU, then those who voted not too or just could not be bothered to vote.
A few members on here living abroad mentioned the peso rate was very low and in some cases they was finding it hard to manage funds.
So I was wondering is it any better now after so many months,
I have noticed that the rate is not has high as it use to be but it's steady at around the 62 mark.
I know we all have to cut our cloth according to how we have to live, even here in England.
I have never known it to be above 70 peso at all , but I am sure when many made the Philippines there home it could have even been higher.
So what changers if any have you made to live well over in the Philippines, and if it got very bad financial wise could you come back to England.

[fred]

Personally Steve,we would never have been happy relying on a fixed income from the UK.. Not nice being a slave of currency depreciation and worse of all..Philippines famous annual inflation rates!!

[stevewool]

Personally Steve,we would never have been happy relying on a fixed income from the UK.. Not nice being a slave of currency depreciation and worse of all..Philippines famous annual inflation rates!!

Trying to find some sort of income from where you are living is the best way, but some of us cannot do that, we have neither the funds to buy into something or the years left to get a return too.
Rental must be one of the best returns, but in our case its making sure we have enough funds to last both our lives, sod the rest i say.
So for me its hard cash and plenty of it, no mortgage to pay and live within our means but enjoy life.
But like anything plans can change

[Harry T]

Personally Steve,we would never have been happy relying on a fixed income from the UK.. Not nice being a slave of currency depreciation and worse of all..Philippines famous annual inflation rates!!

Yes Fred, and indeed thats what i was looking into on my recent visit..

[Terpe]

A few months back when more people voted to leave the EU, then those who voted not too or just could not be bothered to vote.
A few members on here living abroad mentioned the peso rate was very low and in some cases they was finding it hard to manage funds.
So I was wondering is it any better now after so many months,
I have noticed that the rate is not has high as it use to be but it's steady at around the 62 mark.


If I remember correctly during the year from June 2015 to June 2106 the RoE was in principle above P70
On the day of the Brexit vote, June 23 2016, the RoE dropped from P69 to P64 then continued down to P61 and has been around the P61/P62 level ever since.

So for those of us with UK sourced pensions/incomes it represented a sudden drop in income of around 13%. That's where it remains until now.

Actually the 'reliance' upon UK sourced income isn't a choice for the vast majority of retired Brits (or other retired foreigners on their domestic incomes)
Developing a strategy to build a reasonable locally generated income isn't as easy as it may seem.
As for us, we've been lucky to have already owned property, of which some has been sold on and some rented out.
Renting out has it's issues here, just as anywhere else really, but it provides income in Peso.

In terms of whether the RoE is P70 or whether it's P30 it means exactly what you mentioned,
"....to cut our cloth according to how we have to live".

For folks who retire here the pension and fluctuations is not something that can easily be changed.



I have never known it to be above 70 peso at all , but I am sure when many made the Philippines there home it could have even been higher.


I've known it above P100
For those folks who retired and relocated here during that period, I'm sure it's been tough. Especially if loans / mortgages had been part of the deal



So what changers if any have you made to live well over in the Philippines, and if it got very bad financial wise could you come back to England.

To be honest, we haven't made any changes really. Our income has always been above our expenditure. Of course that doesn't mean it can't change.
Our efforts have been focused on securing as much local income as we could through renting property.

Personally neither of us can imagine returning to UK.
For our specific circumstances we have nothing to return to.

If the worst came to the worst with RoE we'd consider selling the house and moving in with family in Davao, or possibly relocating to another place.
I'd hope that wouldn't come in my lifetime but who knows what lies just around the corner..........not one of us.

[Terpe]

Personally Steve,we would never have been happy relying on a fixed income from the UK.. Not nice being a slave of currency depreciation and worse of all..Philippines famous annual inflation rates!!

You've been lucky enough to have been in a position to make many more choices than those folks who decided to retire and relocate in the later years of life.

Not that many have been able to do that.
With our rental businesses we had to make a decision on spending cash for the future income we hoped for as we didn't have the time, funding or motivation to work at building up a new life. We enjoy our retirement.

[stevewool]

Thanks for a very good reply Peter.
It's down to each and everyone of us to plan what you think is best for your needs.
What we are doing I think is right for our needs.
The house we built is for Emma's dad but it's ours too for how ever long we need it to be, there will be bills that will come from our budget, but thats little compared to paying rent.
Investment to me is not for me it's for everyone else who may think they will get a hand.
I am to old to start again thinking I have to make this each month to live and what happens if i don't make that, more worry more stress,
We have enough funds for what we both want, and that is not counting my state pension, that's a bonus to be put aside for the just incase, and yes just incase I won't make it , Emma is covered

[stevewool]

You've been lucky enough to have been in a position to make many more choices than those folks who decided to retire and relocate in the later years of life.

Not that many have been able to do that.
With our rental businesses we had to make a decision on spending cash for the future income we hoped for as we didn't have the time, funding or motivation to work at building up a new life. We enjoy our retirement.

Hats off to you and the many others who have made a living from where you are living now, it takes many years I am sure plus having a good women/ family behind you too must help.



So far I have the women and a father in law:xxgrinning--00xx3:

[Harry T]

Hats off to you and the many others who have made a living from where you are living now, it takes many years I am sure plus having a good women/ family behind you too must help.



So far I have the women and a father in law:xxgrinning--00xx3:

For sure Steve thats probably THE most important aspect of living abroad, even the best laid plans could come unstuck without that.

[fred]

You've been lucky enough to have been in a position to make many more choices than those folks who decided to retire and relocate in the later years of life.

Not that many have been able to do that.
With our rental businesses we had to make a decision on spending cash for the future income we hoped for as we didn't have the time, funding or motivation to work at building up a new life. We enjoy our retirement.

"Lucky" you say!!
I really didn't feel very lucky in all the years we were saving and sacrificing in the UK to finance our future plan and MASSIVE life change with 3 kids!
We also took a huge risk as nobody ever knows if plans of moving the whole family unit to another part of the world will work out..Especially when ALL income depends on the sucsess or failure of a local business!
In most cases it goes pear shaped and families all go home broke and depressed to start again from Zero..
That has also happened to me in the past from various parts of the world so I know how that feels.
We have often depended on a bit of good fortune here with crossed fingers and a prayer at times but I for one definitely wouldn't put any of what we achieved down to "luck"!!:biggrin:

[stevewool]

8 years of saving hard , working hard and enjoying what we have together too.
We are lucky we have work that pays well and no debt too.
So with the first plan we made together coming to a end very soon, its the last push now, but Emma would like to see more of the world before we go East.
So the savings may take a hit but its only money ,

[Terpe]

"Lucky" you say!!
..............I for one definitely wouldn't put any of what we achieved down to "luck"!!:biggrin:

Did I say that?
I'm sorry if that's what you read into it.

I thought what i had said was you were lucky enough to be in a position with more choices than retirees.

You may or may not agree on that point.

[stevewool]

I have been lucky, infact Emma would say we have been blessed in what we have found in each other.
And i like that no matter how it is said.:smile:

[fred]

No worries Peter...Its just that word "luck" I guess.. I can remember very well, back when I could have done with some!

I thought what i had said was you were lucky enough to be in a position with more choices than retirees.

Who knows what tomorrow will bring? Might be good,might be not so good...All we can do is hope for the best and prepare for less!

Anyway..
Cheers,
Fred.

[stevewool]

Tomorrow i may buy you that drink,:xxgrinning--00xx3: