The Ph Philippine ppines s as s Retir tirement ement Haven n - - PowerPoint PPT Presentation

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PHILIPPINE RETIREMENT AUTHORITY

29 / F CITIBANK TOWER PASEO DE ROXAS, MAKATI CITY

The Ph Philippine ppines s as s Retir tirement ement Haven n for r Baby y Boomer mers

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Source: United Nations, Department of Economic and Social Affairs - Population Division, Population Estimates and Projections Section (http://esa.un.org/unpd/wpp/unpp/panel_indicators.htm)

• I. Baby Boomer
• mers

Population Project of Select Countries (thousands) Area Age Year 2010 2025 2050

China

35-59 497,095 534,784 408,766 60-Above 165,153 281,597 439,207 Total 662,248 816,381 847,973

Japan

35-59 42,583 40,504 27,888 60-Above 38,544 43,600 45,005 Total 81,127 84,104 72,893

Republic of Korea

35-59 18,873 18,123 12,863 60-Above 7,574 13,680 18,321 Total 26,447 31,803 31,184

United States of America

35-59 105,625 105,828 116,607 60-Above 57,165 85,172 107,239 Total 162,790 191,000 223,846

Europe, Northern America, Australia/New Zealand and Japan

35-59 432,578 428,663 369,340 60-Above 268,761 350,298 418,327 Total 701,339 778,961 787,667

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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

(http://esa.un.org/unpd/wpp/population-pyramids/population-pyramids_absolute.htm)

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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

______________________________________________________________________________________________________________________________

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.

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

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WHAT OUR TARGET MARKETS SAY…

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

CHINA : Older generations want to stop working and relax; but the family is central 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

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THE WORLD

• II. Why the Philipp

ppines ines

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

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Tropical Climate and Natural Attractions

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Affordable Cost of Living and Amenities

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VISIO ION To make the Philippines a globally competitive and preferred retirement destination in Asia. MISSIO SION 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.

III. . Philipp ppine ine Retir iremen ement t Authority thority

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04 July 1985 E.O. 1037 31 Aug. 2001 E.O. 26 12 May 2009 R.A. 9593

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RESIDENT RETIREE SERVICING CENTER (RRSC) MARKETING CORPORATE RESOURCES SATELLITE OFFICES

The PRA Organiza zatio ion

Processing Division Servicing Division Investment & Monitoring Group Special Concerns Unit Social Dynamics Group SWS Contact Center Recreation & Therapy Center (RTC) Client Relations Division Marketers’ Management Unit Ads & Promo Division Web Marketing Admin Division

Retrement Inst.

Finance Division

Co-Invest. Fund LIRA/RADAR

Corporate Planning

• Info. & Tech. Group

Baguio City Clark Angeles, Pampanga Subic Olongapo, Zambales Cebu City Davao City

Accreditation & Franchising

• Reg. of Facilities

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Our Core Product: Special Resident Retiree’s Visa

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SRRV V Benefit its

• 1. Option
• n to Reside

de Perman anen ently

• 2. Multipl

ple e Entry y Privi vileg eges es 3. 3. Exempt ption

• ns

s from:

 Bureau

au of Immigrat ation

• n ACR I-Card

 Alien Registrat

ation

• n

 Emigrat

ation n Clearanc nce Certificate te (ECC)

 Re

Re-Ent ntry Permit (RP)

 Special

al Return Certificat ate e (SRC)

 Custom

• ms Duties and Taxes with regard

d to the importat ation

• n of

househ ehold d goods and persona nal effects ts up t to US$7,000. 0.00 00;

 Tax from pension

• n and annuities;

es;

 Travel

el tax, if stay in the Philippines es is less than one year from the last entry date;

 Student’s Visa/Study Permit;  Return Ticket

et.

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4.

• 4. Assist

stan ance ce in securi uring ng documen ents s from

• m other

er government ernment agenci ncies.

• es. These

se include de, but are not limited ed to:

*Alien Employme

ment t Permit (AEP) from the Departm tmen ent of Labor and Employme ment nt *Driver' er's License form the Land Transpo porta tati tion

• n Office

*Tax Exemption n / Extension n Certificat ate e from the Departme tment nt

• f Finance

*Tax Identificati tion

• n Number (TIN) from the Bureau of Interna

nal Revenue ue *Clearan ance from the National Bureau of I Investigat ation n (NBI)

SRRV V Benefit its

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• 5. Avai

ailmen ent of the Greet et & Assist st Program am;

• 6. Free

e subscr cript ption

• n of the PRN (PRA Newslett

etter) er);

• 7. Soci

cial al Dynamics amics

Lakbay ay Saya Tour (Educational , Cultural & Informative Tour) Communi nity ty Immersion

• n - Medical/Dental Missions /

Outreach Programs Fun Activities es – Beach Bash, TV Network Tours, Fun Run / Walk

• 8. Use of the Services

ces with a Smile e (SWS) Contact act Center er

• 9. Use of the Recrea

eation

• n and Therap

apy y Center er (RTC)

• 10. Avai

ail Servi vices ces of the Retirem emen ent Institute ute (RI)

SRRV V Benefit its

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Ailing Retir irees

SRRV Human an Touch

Regular Retirees

SRRV SMILE LE

(Non-Convertible)

SRRV CLASSIC

(Convertible)

SRRV Courtesy esy

Acti tive ve Retir irees Former Diplomats Former Filipino

SRRV Optio ions

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SRRV OPTIONS SRRV SMILE SRRV CLASSIC SRRV HUMAN TOUCH

For Active/ Healthy Retirees For Active/ Healthy Retirees For Ailing Retirees Age Qualification & Visa Deposit 35 y.o. & above = US$20,000.00 35 to 49 y.o. = US$50,000.00 50 y.o. & above = US$20,000.00 = US$10,000.00 35 y.o. & above = S$10,000.00 PRA Designated Bank(s) Development Bank of the Philippines

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SRRV OPTIONS SRRV SMILE SRRV CLASSIC SRRV HUMAN TOUCH

Age Qualification & Visa Deposit

35 y.o. & above = US$20,000.00 35 to 49 y.o. = US$50,000.00 50 y.o. & above = US$20,000.00 = US$10,000.00 35 y.o. & above = US$10,000.00

Convertibility

• f Deposits

*Inconvertible *Locked-In with the PRA Designated Bank *Intended for End

• f Term

Obligation *Convertible to Active Investment in RFO Real Estate Properties *Investment value must be at least US$50,000.00 *Inconvertible *Locked-In with the PRA Designated Bank *Intended for End

• f Term Obligation

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SRRV SMILE SRRV CLASSIC SRRV HUMAN TOUCH 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) 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

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SRRV SMILE SRRV CLASSIC SRRV HUMAN TOUCH

Dependents

Principal may be enjoined by Dependents ts (Spouse/Chi /Childre ren). ). If more than two (2), additi tional Visa Deposit t will be require red

Application Fee Principa pal Applicant nt US$1,400. 0.00 00 Depende dent nt US$300.00 00 (one time proces essing ng fee) Yearly Obligation Renewal al of PRA ID C Card Update e Status & C Contact t Informa mati tion

• n

Paymen ent t of the PRA A Annual Fee (PAF) US$360.00

(additi tional US$100.00 for each dependent t in excess of two) *PAF is payable upon enrollment t & every ry year r there reaft fter

Principal may be enjoined by one (1) dependent

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SRRV COURTESY

Former er Diplomats / A Ambassad adors

• rs

Former er Filipino Citizens ns Age Qualificat ation n : Former er Filipinos

• 35 years old & above

Former er Diplomats ts – 50 years old & a above Visa Deposit: t: US$1,500. 0.00 00 Additional al Deposit for Additional al Dependen ent/s t/s is only applicab able e to former Diplomats ts/Amba mbassad ador

• r

Documen entary tary requirem ements ents for joining applican ants ts are the same with those document ents for SRRV SMILE and SRRV Classic Yearly Obligation:

• n: Renewal

wal of PRA ID Cards Update te of Statu tus & Residence & Conta tact nfos Payment t of the PAF - US$10.0 .00/re /retire ree

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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”

• IV. Develop

elopmen ments ts and Busin iness ess Oppor

• rtu

tuniti nities es in Setting ing-up up & Operation tion of a Retirem emen ent t Village

25 Fiscal Incentives to TEZ Operators Non-fiscal Incentives to TEZ Operators & Registered Tourist Enterprises & Registered Tourist Enterprises Income Tax Holidays Employment of Foreign Nationals

Income tax exemptions from the beginning of business In executive, supervisory, technical or advisory positions

• perations for a period of 6 months-extendable

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 200,000.00 in a TEZ and assessments

• r 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,

• f 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

• perating 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

• r cultural heritage preservation activities

Incentives WithinTourism Enterprise Zones

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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 Incentives Outside of TEZs

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IV.B. Board of Investment (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

• f President Aquino’s Priority Investment Areas for 2011

Source: www.boi.gov.ph

Latest Development from the BOI

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IV.C. Philippine Economic Zone Authority (PEZA)

PEZA Resolution No. 06-513 – 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

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Retirement Ecozone Retirement Ecozone Park Retirement Ecozone Center Retirement Ecozone Developer / Operator Retirement Ecozone Facilities / Enterprise Location

Estate in PRA Priority Areas Estate in PRA Priority Areas Estate in PRA Priority Areas Estate in PRA Priority Areas Estate in PRA Priority Areas

Landholding Rights

Management and Operation Management and Operation Proof of Ownership

PEZA Registration

• A new or existing

complex with a

• min. of 4 hectares

in a PRA Priority Areas 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

• Incentives
• (Fiscal) 5% tax on gross

income (Non-fiscal) Employment of foreign nationals and SIRV (Fiscal) 5% tax on gross income (Non-fiscal) Employment of foreign nationals and SIRV

Registrable Activities

PRA endorsed and recommended activities PRA endorsed and recommended activities PRA endorsed and recommended activities

• PEZA Resolution No. 06-513

Source: PRA Accreditation Guide

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Automatic accreditation as marketer, and entitlement to a Waiver Scheme

• f 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

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

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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

IV.E. Information for Potential Retirement Village Operators

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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

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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

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• 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
• utside medical services.

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.

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• 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.

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• 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

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• V. Other

er Informa

• rmation

ion

V.A. Top 10 Nationalities from 1985 to April 2011

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2000 4000 6000 8000 10000 12000 TOTAL 1106 2984 3294 4612 11501

1985-1990 1991-1995 1996-2000 2001-2005 2006-2011

YEARS TOTAL 1985-1990 1,106 1991-1995 2,984 1996-2000 3,294 2001-2005 4,612 2006-2010 11,501 TOTAL 23,497

V.B. Enrollment 1985-2010

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V.C. Lessons Learned from Retirement Village Operators

• Project must be born out of concern for the elderly
• A strong understanding of the global phenomenon of aging &

retirement and its consequences ~ Capitalize on the Filipino’s natural warmth & innate hospitality

• An ideal location for business

~ A team of dedicated and highly-trained medical and allied-medical professionals

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V.D. Lessons Learned from “Not So Successful” Retirement Projects

• An ideal location for the business
• An understanding that elderly needs may vary according to nationality
• r culture but remains rooted to care and wellness
• A progressive plan to sustain the nature of business –health and continued

care for the elderly

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• 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).

• VI. PRA Propos

posed ed Legisla islation tion for Reti tirem emen ent-Rela elated ted Facili liti ties es

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THANK YOU!

PHILIPPINE RETIREMENT AUTHORITY 29th floor Citibank Tower, 8741 Paseo de Roxas, Makati City

• Tel. No. 848-1418, Fax No. 848-1411

Services With a Smile, SWS 750-0007 www.pra.gov.ph