Sunday, November 17, 2013

How to Plan for an Early Retirement for Filipinos

Early retirement does not happen. This requires planning, commitment, and money.

Philippine fact

1.       The average lifespan of Filipinos as of February 2013 is 71 years.

2.       The average Filipinos spends 10 years in retirement.

How should an average Filipino prepare for retirement?

1.       Know your needs for retirement. Pinoys think that their lives would be easier when they retire. However, the cost of living increases as the years pass by. This means that what you earned when you were younger does not mean that it will be enough when you retire. The secret on how to plan for an early retirement should be to plan ahead.

2.       Saving is good but it does not mean that what you save will be enough.  If you save your money in the bank, this only amounts to a 0.25% annual interest rate. If you are able to save P1,000 pesos per month for 20 years, that would only be around P300,000. This means that if a Filipino retires for ten years, it would be spending P2,500 per month from savings.

3.       Find out about your GSIS or SSS benefits. It would be wise to know about how your retirement benefits from these institutions would be like. However, there is bad news for people who trust their retirement with either institution. You can read about why this is so if you read thisarticle.

4.       Invest. It is true that there are no plain employees who became financially stable when they retire based only on their employment. You should invest your income in various ways. You can ask any financial planning institutions on how you can diversify your income. You can start a traditional business or join a network marketing company.

If you desire to have an early retirement, you can get practical advice. You can post your comments on the comment box or send me an email.

To Your Financial Success!

 Lornajane Altura


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