Please, please, please! Financial planning for retirement is not nonsense

What does living your best life mean to you?

Every day, people work to survive. You work hard because you have bills to pay, vacations to go to, and families to feed. You strive to work hard so that you can live a quality life that you will be satisfied with. Pero, what comes next when you are entering your retirement? Paano mo aalagaan ang iyong sarili kung wala ka ng trabaho?

Retirement can either be a long exhale after working hard all those years or an inhale of anxiety because you realize that you are not prepared for it financially. In a 2024 report by Sprout Solutions, 41% of Filipinos have not kept any kind of savings, while only 25% would say that they are in a good place financially. This shows how Filipinos are struggling with their current financial capability and are then having to give up saving for their retirement in the next 20 years in order to get food on the table for the next five days.

Hindi mo kailangang matakot sa possibility na ‘hindi mo na masisimulan’ ang retirement plans mo dahil ‘hindi mo pa kaya.’ You can always do little, baby steps to start your course.

I’m working late ‘cause I’m a planner!

There are several options for Filipinos to choose from to jumpstart their financial retirement plans.

Besides the government contributions your company takes out of your salary monthly, marami pang ibang options ang maaaring i-explore ng mga Pilipino pagdating sa pagpondo ng kanilang retirement plan. Nariyan na ang pension plans ng SSS, Personal Equity Retirement Account o PERA, pag-i-invest sa mga real estate, o hindi kaya ay pagkuha ng stocks o mutual funds.

These options can sound challenging for beginners, especially if you are not confident with your current financial situation. To help you, narito ang simpleng steps upang mas madaling maintindihan kung saan nga ba magsisimula.

1. Determine your retirement plans

What kind of life do you want to lead after retirement? List down your priorities and set a solid goal of where you want to be in life by then.

2. Seek out options

Maghanap pa ng ibang options on how you could grow your contributions. Pag-IBIG Fund offers a program called Pag-IBIG Fund MP2 Savings that allows you to earn higher dividends than the regular Pag-IBIG Savings Program. Explore beyond the usual offering and find ways to maximize your income for a higher pension.

3. Find out your figures

Now that you have your goals and added income sources set, it is time to crunch the numbers. Start listing down potential expenses: daily living, leisure, health-related, and other miscellaneous expenses that would be relevant during retirement. Following this, take into account your expected income and settle with a number that you want to land on.

4. Save, save, save

It is all a waiting game from here. Save religiously, stick to your plan, and be focused on your end goal. Do not let yourself fall into the temptation of spending beyond your means and center your attention sa ginhawa na ibibigay mo sa ‘future self’ mo kapag naging loyal ka sa retirement plans mo.

5. Be flexible

By now, alam mo nang hindi predictable ang buhay. There are going to be some curved roads here and there but what is most important is you keep yourself on track. If it means slowing down and adjusting your retirement plan, that is completely okay. Dapat lang manatiling flexible at maging matalino sa iyong choices.

With age, people grow more mature, both physically and mentally. You must realize that embarking on a financial plan is simply becoming smart about how you trudge your way through life. There will be unexpected stops and turns, yet if you work towards one goal and ensure that you stick to it, benefits will be sowed eventually. Remember: living a fulfilled life is ensuring your security and assuring yourself that you will be okay, no matter the age.

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By Aira Matsushita (Copywriter)