Most of us Filipinos work hard during our youth because we want our retirement years to become comfortable, not having to work anymore and just enjoy what we have saved for the past years.
But a question always pops up whenever we think of retiring: Are we really that ready to retire?
According to leading financial website MoneyMax.ph, there is this unwritten rule in the Philippines that a vast majority will still have to continue to work after retirement or put up their own business for added sources of income.
Only a few are able to retire on good faith with enough savings for their retirement years, but some have to depend on their children and relatives for their financial needs.
The retiring age in the Philippines is 60 years old, and the life expectancy in Asia is 75. A retiree will still need to survive day-by-day for 15 more years.
But ironically, about eight million Filipinos have no pension plans or retirement savings at all.
To combat this dilemma, MoneyMax.ph mapped out a contingency plan for those thinking of retiring soon. Here are the steps:
1. Expect costs.Upon retiring, you will still roughly have the same expenses as you but with less or no income. Where will you get the money to survive? Pensions might be a good answer – but surely, it won’t be enough to cover everything.
2. Plan for hospitalization.As you get old, your body will also get weaker. There’s a big chance you’ll get hospitalized when you’re sick as your body’s immune system will not be as strong as it was.
3. Save today. Allocate a portion of your income for your retirement. Filipinos have always been known to splurge on celebrations and family. If you know your financial capacity, live within your means. You can opt to save in banks or protect your assets with insurance plans.
4. Invest.Make your money work for you. Explore stocks, mutual funds, bonds. Even if you’re not working, if you invest on these financial channels, your money will appreciate over time.
See below an INFOGRAPHIC about retirement in the Philippines:
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