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Redefining Retirement in the Philippines

Redefining Retirement in the Philippines

Joel Barretto, CFP | NEGOSENTRO.COM |

Webster defined retirement as a time to disappear, to go away, to withdraw. Retirement was non-existent until the booming age of industrialization in the United States of America, in the 1950s. People simply worked until they died.

During those times, progressive companies decided that they needed to retire older workers who slowed them down and hindered their growth. Because life expectancy was low, people who were retired during that era, viewed retirement as a short respite from a life of turmoil, as they eventually died after a couple of years upon retirement.

It wasn’t until the 1970s that Americans redefined retirement as a time for play and leisure. People who retired early were viewed as successful individuals in society. Meanwhile, more and more Americans aspired to make retirement their mark for success.

Until today, retirement in the Philippines has been but a dream people did not proactively plan for. Traditional Filipino custom, transfers the burden of retirement to their children, thereby charging their kids with the responsibility to support their parents throughout their retirement life. Meanwhile, their kids have a family to support and their own retirement to worry about.

Fortunately, times are changing as we experience phenomenal economic growth in the Philippines today. We are witnessing a turning point in our way of life, where more opportunities are becoming available, allowing our citizens to earn and live a comfortable lifestyle, not to mention having the resources to plan for their future.

But this lifestyle can only last for as long as they have the ability to work. Not too many Filipinos are prepared for retirement as our pension and social security systems need a major overhaul. Therefore, it’s time to revolutionize retirement in the Philippines!

It all starts with a clear vision of how you want to live the remaining years of your life. Properly planning your retirement requires answers to a few questions, like:

  • What kind of lifestyle do you plan on living during your retirement years?
  • At what age would you like to retire?
  • How much income will you require at retirement?
  • Will you have enough protection against long term medical needs?
  • How will your assets be protected and allocated at retirement?
  • Where will your retirement income be generated from?
  • How does inflation and taxes play a role in your retirement planning and how do you maneuver around it?
  • How long will you be in retirement?

People never plan to fail, they simply fail to plan. Plan your retirement today!

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