What to expect when you're retiring in the Philippines

MoneyMax.ph

Posted at Sep 28 2014 05:56 PM | Updated as of Sep 29 2014 01:56 AM

(Editor's note: This article was written by MoneyMax, the Philippines’ foremost online platform for comparing financial and telecom products and services, for ABS-CBNnews.com. Find out more at MoneyMax.ph)

MANILA, Philippines - Are you ready for retirement?

There is an unwritten rule in the Philippines that a vast majority will still have to continue to work after retirement or put up business for added sources of income. Some might not have to work, but would need to depend on their kids, relatives and other loved ones because of financial needs. Only a few are able to retire on good faith with enough savings for their retirement years.

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 on a span of 15 years.

Sadly, eight million Filipinos have no pension plans or retirement savings at all. On starting to save for retirement, the earlier, the better. Every financial decision you make now affects your future.

How to plan for retirement? Here are steps:

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.

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.

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.

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.

Are you retiring soon? Here’s an infographic about retiring in the Philippines: