Does the word “retirement” get you excited for future adventures, or does it fill you with dread and anxiety? Do you have grand plans to travel the world, want to pursue your own business, or just go with the flow?
Whatever the case may be, you don’t want to still be worrying about your finances when you reach that point. So how much money do you really need for retirement?
Consider your annual salary and how much you plan to spend during retirement. According to Cebu International Finance Corporation President Ruben Almendras, the required cash flow for a middle-class Filipino retiree is PhP 100,000 per month. Multiply this figure by the number of months you expect to live after retirement to determine the minimum amount you need to stay comfortable.
To help you achieve this, there are products like AIA Philippines’ Future Protect that lets you grow your money while you’re still working—you can get higher returns here than if you let your money stay stagnant in a bank savings account. Once you retire, you also get to choose when to start receiving regular cash pay outs.
It also doubles as a protection package for your family—in case anything happens to you before the chosen retirement age, your family will be taken care of and will receive family insurance benefits like regular cash pay outs.