The Philippines is well-known for its hospitable and friendly people. The Filipino people are approachable, accommodating, always ready to give a smile, among other positive traits. Those who have been to the country can attest to those facts.

That being said, there are some who are contemplating of retiring in the Philippines as the cost of living is lower than in western countries. So if you plan to retire in the Philippines, here are estimates of some of the monthly costs (all denominations are in US dollars):

Rent

House rental rates in Manila (capital of the Philippines) and other major cities like Davao and Cebu are by far the highest. Rates in regional areas can be significantly cheaper. Finding a house is quite easy as most Filipino landlords would rather rent their houses to foreigners than locals. They feel that they can charge a bit more (price-wise it will still be a bargain) and have a greater chance that the rent will be paid on time. For $350 a month you will be able to find something pretty decent.

Utilities

Utilities in this case refer to electricity, water, internet connection, telephone, and cable TV. Take note that electrical outlets in the Philippines are 220 volts so you may have to buy a transformer if you intend to bring some of your appliances or gadgets. Expect to pay between $100 to $200 for electricity and that already covers the use of TV, computer, air conditioner, and what have you. For internet connection, a Digital Subscriber Line (DSL) that's about 512 kbps in speed will cost $25 a month. A telephone line will set you back $12 per month, water about $25 per month, and cable TV about $15.

Transportation

If you drive your own car, a liter of gasoline is about $1. Diesel is a little cheaper at about 77 cents per liter. If you don't have a car, some of the modes of public transportation in the country include passenger jeepneys, buses, and taxicabs. The minimum fare for the jeepney is 16 cents, 25 cents for buses and it goes higher as you go farther. The flag-down rate in taxicabs is 77 cents.

Bottled Water

You don't want to catch waterborne diseases from the tap so this is a must. Bottled water will set you back at about $25 a month. Note that this is different from the water mentioned under utilities.

Hired Help

Having a hired help or housemaid in the Philippines that will help you with the household chores will set you back $45 to $65 a month.

Summary

Although the cost of living in the Philippines is considerably cheaper, it will still depend on how frugally you will be living. If you have a monthly pension or income of about $1000, you can live a relatively comfortable life.