According to recent data, about 9 in 10 Filipinos, or 90%, are anxious about retirement. This is because they don’t know how they can build a fund to last their sunset years, as living day to day is difficult enough.
Majority of Filipino workers are anxious, instead of excited, about retirement because it means using up all their savings, being in poor health, and more often than not having no one to care for them or being a burden on their families.
The good thing is, the number of Filipinos who are realizing the importance of retirement plans in the Philippines are rising.
If you’re thinking of retiring or haven’t set up a retirement fund yet but you should, check out these steps to starting out building a retirement fund successfully.
1. Set your financial SMART goals
Plan ahead. Figure out how much you need to save up for and then divide it per month. Make sure it’s feasible and that you’ll be able to stick to it every month for x amount of years. Write it down on a notebook or better yet, create an Excel sheet for it so you can track down your savings.
2. Include your family in your plans
Talk to your family and let them know how much you need to save. Come up with ideas together and work together towards that goal.
3. Create a budget
Create a monthly, or even daily, budget for yourself and your family. You can even download free spending trackers on your phone to keep track of all your expenses. The great thing about tracking your expenses is that you get to see which ones are needs and which ones are wants. Try to eliminate the wants as best as you can so that you can save more. Make sure you are spending less than what you earn each month.
4. Invest a portion of what you earn
It’s not enough to just put away a portion of your income in a bank. You’ll need to grow it so that it lasts longer. You can put up a small business or invest in a small franchise to have a source of income even after you’ve retired.
6. Diversify your investments
You’ve heard the saying don’t put all your eggs in one basket? This couldn’t be truer than with your retirement fund. You will want to have another place to invest in. A good investment would be a retirement fund that would steadily grow as the years go by.
7. Start young
It’s never too early to start preparing for retirement. In fact, the earlier you start, the better. Put away a little money each month towards your retirement plan. It can also help to set up a bank account dedicated to your retirement fund so you won’t be tempted to touch the money.
Retiring should be a happy occasion, not a stressful one. By preparing and planning ahead, you can ensure you’ll be financially secure throughout your retirement.