PHILIPPINE RETIREMENT AUTHORITY 29 / F CITIBANK TOWER PASEO DE ROXAS, MAKATI CITY

Transcription

1 The Philippines as Retirement Haven for Baby Boomers PHILIPPINE RETIREMENT AUTHORITY 29 / F CITIBANK TOWER PASEO DE ROXAS, MAKATI CITY 1

2 I. Baby Boomers Population Project of Select Countries (thousands) Area Age Year , , ,766 China 60-Above 165, , ,207 Total 662, , , ,583 40,504 27,888 Japan 60-Above 38,544 43,600 45,005 Total 81,127 84,104 72, ,873 18,123 12,863 Republic of Korea 60-Above 7,574 13,680 18,321 Total 26,447 31,803 31, , , ,607 United States of America 60-Above 57,165 85, ,239 Total 162, , , , , ,340 Europe, Northern America, 60-Above 268, , ,327 Australia/New Zealand and Japan Total 701, , ,667 Source: United Nations, Department of Economic and Social Affairs - Population Division, Population Estimates and Projections Section ( 2

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4 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 ( 4

5 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. 5

6 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 6

7 II. Why the Philippines THE WORLD 7

8 State of the Art Medical facilities and World Class Healthcare Service Providers 8

9 Tropical Climate and Natural Attractions 9

10 Affordable Cost of Living and Amenities 10

11 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. 11

12 04 July 1985 E.O Aug E.O May 2009 R.A

13 The PRA Organization RESIDENT RETIREE SERVICING CENTER (RRSC) MARKETING CORPORATE RESOURCES SATELLITE OFFICES Processing Division Servicing Division Investment & Monitoring Group Special Concerns Unit SWS Contact Center Social Dynamics Group Recreation & Therapy Center (RTC) Client Relations Division Marketers Management Unit Ads & Promo Division Web Marketing Admin Division Retrement Inst. Finance Division Co-Invest. Fund Corporate Planning LIRA/RADAR Accreditation & Franchising Reg. of Facilities Info. & Tech. Group Baguio City Clark Angeles, Pampanga Subic Olongapo, Zambales Cebu City Davao City 13

14 Our Core Product: Special Resident Retiree s Visa 14

15 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. 15

16 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) 16

17 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 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) 17

18 SRRV Options Active Retirees Regular Retirees Former Diplomats Former Filipino SRRV SMILE (Non-Convertible) SRRV CLASSIC (Convertible) SRRV Courtesy Ailing Retirees SRRV Human Touch 18

19 SRRV OPTIONS SRRV SMILE For Active/ Healthy Retirees SRRV CLASSIC SRRV HUMAN TOUCH For Active/ Healthy Retirees For Ailing Retirees Age Qualification & Visa Deposit PRA Designated Bank(s) 35 y.o. & above = US$20, to 49 y.o. = US$50, y.o. & above = US$20, = US$10, y.o. & above = S$10, Development Bank of the Philippines 19

20 SRRV OPTIONS SRRV SMILE SRRV CLASSIC SRRV HUMAN TOUCH Age Qualification & Visa Deposit 35 y.o. & above = US$20, to 49 y.o. = US$50, y.o. & above 35 y.o. & above = US$10, = US$20, = US$10, Convertibility of Deposits *Inconvertible *Locked-In with *Convertible to Active Investment *Inconvertible *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 Obligation must be at least US$50, of Term Obligation 20

21 SRRV SRRV SMILE CLASSIC Documentary Requirements: SRRV Application Form Original Passport with Valid Entry Medical Examination Clearance Police Clearance (from country of origin) & National Bureau of Investigation Clearance 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) SRRV HUMAN TOUCH Additional Requirements 1) Health Insurance Policy 2) Pension Documents Upon reaching 35 years old, the SRR Visa of the Dependent will be automatically cancelled unless dependent will join as a PRINCIPAL Retiree 21

22 SRRV SMILE SRRV CLASSIC SRRV HUMAN TOUCH Dependents Principal may be enjoined by Dependents (Spouse/Children). If more than two (2), additional Visa Deposit will be required Principal may be enjoined by one (1) dependent Application Fee Principal Applicant US$1, Dependent US$ (one time processing fee) Yearly Obligation Renewal of PRA ID Card Update Status & Contact Information Payment of the PRA Annual Fee (PAF) US$ (additional US$ for each dependent in excess of two) *PAF is payable upon enrollment & every year thereafter 22

23 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, 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 23

24 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 24

25 Incentives WithinTourism Enterprise Zones Fiscal Incentives to TEZ Operators & Registered Tourist Enterprises Income Tax Holidays Income tax exemptions from the beginning of business operations for a period of 6 months-extendable Non-fiscal Incentives to TEZ Operators & Registered Tourist Enterprises Employment of Foreign Nationals In executive, supervisory, technical or advisory positions 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, 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

26 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 26

27 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: 27

28 IV.C. Philippine Economic Zone Authority (PEZA) PEZA Resolution No 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 28

29 PEZA Resolution No Retirement Ecozone Retirement Ecozone Park Retirement Ecozone Center Retirement Ecozone Developer / Operator Retirement Ecozone Facilities / Enterprise Location Landholding Rights PEZA Registration Incentives Registrable Activities Estate in PRA Priority Areas - Estate in PRA Priority Areas Management and Operation A new or existing complex with a min. of 4 hectares in a PRA Priority Areas Estate in PRA Priority Areas Management and Operation A new or existing complex with a min. of 5,000 sqm. for Metro Manila and 2,000 in Cebu under a PRA Priority Areas PRA endorsed and recommended activities PRA endorsed and recommended activities PRA endorsed and recommended activities Estate in PRA Priority Areas Proof of Ownership (Fiscal) 5% tax on gross income (Non-fiscal) Employment of foreign nationals and SIRV Estate in PRA Priority Areas - - (Fiscal) 5% tax on gross income (Non-fiscal) Employment of foreign nationals and SIRV - - Source: PRA Accreditation Guide 29

30 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 30

31 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 31

32 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 32

33 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 33

34 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. 34

35 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. 35

36 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 36

37 V. Other Information V.A. Top 10 Nationalities from 1985 to April

38 V.B. Enrollment YEARS TOTAL , TOTAL , , , ,501 TOTAL 23,497 38

39 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 39

40 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 40

41 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). 41

42 THANK YOU! PHILIPPINE RETIREMENT AUTHORITY 29 th floor Citibank Tower, 8741 Paseo de Roxas, Makati City Tel. No , Fax No Services With a Smile, SWS