Millennials urged to prepare for retirement early

ABS-CBN News

Posted at Aug 17 2016 10:35 AM

MANILA - The country’s young workforce should take advantage of investment opportunities and plan for their retirement early, a fund manager said Wednesday.

Millennials, who are on their first jobs, have up to 40 years in the work force ahead of them and have the advantage of using their technology-savvy to build investment portfolios online, ATR Asset Management President Mike Ferrer said.

“Retirement sneaks up on you… Millennials are in a unique position because they have their full career ahead of them,” Ferrer told ANC’s “Market Edge with Cathy Yang.”

Ferrer said retirement benefits from the state-run Social Security System might not be enough since member contributions are capped. This translates to around P8,000 monthly pension currently, he said.

Corporate retirement benefits required by law on the other hand don’t have “portability,” as employees forfeit the years have accumulated with their past employers when they switch jobs, he said.