The answer to this question begins with a question - what kind of lifestyle do you want?

Do you want to live in the big city of Manila, with all the hub bub, congestion, night life and congestion? Or would you prefer a mid-size city such as Cebu City or Davao City? Do you prefer a more rural lifestyle, like in Subic, Butuan, or Dumaguete? Or perhaps a resort lifestyle, such as in Boracay, which arguably has the most beautiful beach in the world?

Regardless of which location, you will find that it will cost you about one-fourth to one-fifth of what it would cost you for the same lifestyle in the Western world. In the Philippines, on a modest monthly pension or annuity of between $1,000 to $2,000 you can find a location to fit your budget and find youself.

o Retiring twice as rich and five times happier
o Escaping those cold US Winters
o Escaping the rat-race America and the UK have become
o With 2 maids and a driver
o Not running out of money before you run out of month
o Living healthier with less stress
o Living with a beautiful and exotic Filipina lady
o Starting your own business
o Traveling and making life one big adventure
o Being financially free

As in the Western world, your single biggest expense in the Philippines will be housing, and that cost varies tremendously depending on which city you chose to reside, and the type of dwelling you chose (studio apartment, townhouse, high rise condominium, or a detached house) and what degree of security you seek. Examples by cost levels are:

1. On the high end of living cost is Manila, the capital of the Philippines. There is a great range of housing costs in Manila, but in general one will pay between $500 to $1,500, with $1,500 being in the upscale, modern, hip area of Makati.

2. On the moderate level are Davao City (in the southern area of Mindanao) and Cebu City in the central area of the country. Housing in these areas will tend to run between $300 and $900 on the high end.

3. In the rural areas of Butuan City (northern Mindanao), Cagayan de Oro (north Mindanao), Tacloban (Leyte), or Dumaguete (Negros Oriental) housing will cost you between $200 to $700.

Other living costs, such as electricity, telephone, cable TV, medical/dental, groceries, eating out and entertainment, household, maids personal care and other miscellaneous expenses are pretty much the same regardless of which part of the country one resides. Taxis and public transportation are readily available and cheap, so you may not wish to purchase a vehicle and therefore not have the need for a driver. However, should you wish to purchase a vehicle and have a driver, that would cost you from $60 to $100 monthly for the driver, repairs, and fuel.

One of the beautiful things about the Philippines is you can truly design you life to fit you income budget. There are many happy Expat retirees in the Philippines living on monthly incomes in the $800 to $1,000 range. Of course, there are others who have chosen to supplement their pensions with a business in the Philippines and are living lavish lives "fit for a king" on monthly incomes in the $2,000 to $2,500 range.

The important thing in planning retirement in the Philippines is to do your research, based on your wants, needs and desires, and tie into someone who has gone before you and can provide you wisdom by charting through the minefield alongside you.

In this regard, I recommend my latest book, "Retirement Living in the Philippines" which focuses on the matter of clearly defining the lifestyle you want, the costs associated with it, where to reside, how to budget for it, how to develop a side income, if desired, and in general how to develop and execute a plan of action to retire in the Philippines.

Should you wish to learn more, go to http://www.retirementlivinginthephilippines.com where yo can download a copy of the book.

Will Irwin is a powerful entrepreneur and a business and life coach. He has started many online and offline businesses both in the USA and in the Philippines, residing in both Hawaii and the Philippines.