Retirement is a phase in a person’s life when one chooses to permanently leave the workforce behind. Many Filipinos retire at the age of 65, however, there are some who retire as early as 60. This phase can be the most enjoyable moment of your life. Since you are not bound by work, you can travel the world with your significant other or take up hobbies such as arts, craft, gardening and more. You can also spend a portion of your retirement money to renovate your home or buy a new car if you like. You can even invest in the stock market or put up a small business to ensure grow your money.
But unfortunately for many Filipinos, even living a simple life after retiring can be quite tough. While many Filipinos have GSIS or SSS to fall back on after retirement, the funds these institutions provide may not be enough. In many cases, most Filipinos don’t have enough money to fund even their living expenses during retirement.
So, how do you ensure you have enough fund for your retirement?
Saving Up for Retirement
A Retirement Plan is very crucial. Remember, you are leaving the workforce behind, which means that there is a likelihood that you will not earn money anymore. You don’t want to be held back from doing the things you want to do for when you’re retired because you don’t have enough money, right? So, making sure you save up for your retirement is crucial.
So, what can you do to save money for your retirement?
To save for retirement, many Filipinos put their money in a local bank, and this can be quite effective. But there are some downsides to saving your money in a local bank. First is that your money will only grow as much. Banks only have small annual interest rates, and these are lower than the currency inflation. This means that the value of your savings will not be the same in the coming years.
Doing ‘Time Deposits’ can ensure that you will not be able to withdraw your money for a certain period of time, thus allowing you to save money for your retirement. But a downside to this is that your savings are often rendered useless for when emergencies happen. Lastly, when critical illnesses and/or accidents happen, oftentimes, these savings are depleted to payoff medical bills.
Another way of saving money for retirement is by investing in stocks or a small business. A great advantage of doing a small business is that it has the tendency to grow, which means your money grows as well – which means more savings. But then again, a small business may lead to more expenses if not handled properly. As for investing in stocks, if you are not an expert or if you don’t put time in it, then there’s a likelihood that you’ll also lose your money.
Investing on a Retirement Plan
A great way to save for your retirement is to get a retirement plan with a stable and trusted Insurance Company. With a right Retirement Policy, you can grow your money, since you can have your Licensed Financial Advisor delegate your investments on either high-risk investment, moderate risk investment, or both. Depending on the market growth, your money will grow even beyond the annual currency inflation rate. This means that the value of your savings will be even more when you retire. At the same time, you can also make sure that have enough money to pay off your medical bills in case accidents and critical illnesses occur.
Investing on a Retirement Plan
Every family or person has different lifestyle. Therefore, it can be difficult to put an actual amount of funds that will suite everyone. Therefore, it is best to get in touch with a Licensed Financial Advisor, so that you can evaluate the total value of your current lifestyle and create an appropriate Retirement Plan for you. In addition to these, your Licensed Financial Advisor will even help you identify where in your current expenses you can get enough funds to pay your retirement premiums. This way, you can save up enough money for your retirement, without having to sacrifice your current lifestyle.
FREE Personal Financial Planning Services
Pinoy Financial Advice provides FREE Financial Planning Services so you can comfortably save for your retirement. Contact us via mobile phone or send us an email to schedule an appointment with our friendly, Licensed Financial Advisor. What’s even better is that our Financial Advisor will meet you in the most convenient way.
Schedule your appointment and choose whether to conduct your meeting via Zoom or FaceBook; or meet our Financial Advisor at a local place like a Coffee Shop. Please take note, however, that as of the moment, we only do Face to Face meeting within Naga City, Camarines Sur.
Hurry and contact us now to start planning a brighter future for you and your loved ones!
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