Retirement may still be a number of years away but there’s no better time to prepare for it than now. With the rising cost of commodities and services, our savings may not be enough to support us during our golden years. Planning for a fruitful retirement includes having sufficient financial resources for the kind of lifestyle we want to have even after we stop working.

A 2021 Financial Inclusion Survey from BSP reveals that SSS membership is not popular among socio-economic classes A, B, and C, and the impoverished in class E. Also, business owners and the unemployed are less likely to have SSS contributions, limiting their ability to qualify for a government-funded pension. Only 75% of employees, 69% of socio-economic class D, and 49% of adults with a high-school educational attainment are SSS members.

Now is the time to think seriously about the kind of life we’ll have once we are no longer working. We must set our goals straight and ensure we can live comfortably and worry-free during our golden years. Here are some goals that we should achieve as we gear up to enter our senior years.

 

1. Keep finances in check.

It is essential to start saving up for retirement as soon as possible. While there are varying answers on how much we need to save before we leave the workforce, sound advice is to start saving early and regularly to establish a substantial amount as retirement comes closer. Consider the rising cost of living due to inflation when planning. The costs of basic goods and services today may not be the same several years from now.

We must audit and make an inventory of our savings in the bank, insurance plans, and investments. Include properties like home or real estate and monthly pensions if we are covered once we retire. We can use all these to determine our current financial status and estimate how much money we need to afford a good retirement.

 

2. Automate contributions to your savings and investments.

It is ideal to automate retirement contributions to our savings and investments every month so it can grow over time. Automation helps us ensure that saving and investing are a part of our lifestyle – a habit which our future selves will surely thank us for. 

 

3. Choose the right insurance or investment plan.

We will need a pension plan that can cover our retirement needs. Sun Life Philippines has several affordable life insurance plans that can help you prepare for your golden years. Examples include:

• Sun MaxiLink Prime - an insurance with an investment component that helps build funds for a comfortable retirement. It is a 10-year payment period with coverage until age 88.
  
• SUN Smarter Life Elite - a protection and savings plan that provides double life insurance coverage throughout a lifetime. It also gives additional cash benefits, which can become a regular income during the golden years.
  

 

We can also build your wealth over time through Sun Life’s financial investments which have the right mix of funds for all types of investors. Among those we can consider are:

• Sun Life Prosperity Peso Starter Fund - a mutual fund that provides potentially higher annual returns than a standard savings account. This is suitable for those who are new to investments.
• Sun Life Prosperity GS (Government Securities) Fund invests in local fixed-income instruments, issued by the Republic of the Philippines. This is for those who have money saved for the near future but want to earn more than the standard savings account interest rates.

 

Personal Equity and Retirement Account (PERA) is another tool to explore. It is a voluntary retirement saving program that supplements the existing retirement benefits that come from the SSS, GSIS, and employers. It ensures financial security upon retirement and a comfortable life during sunset years. Any person qualified for Tax Identification Number (TIN) is eligible to open a PERA.


4. Execute a winnable retirement plan and stick to it.

Simply said, it is a success if we prepare well for our retirement and a failure when we lack the necessary financial resources once we enter this stage of our lives. To get ready for the battle and achieve our retirement goals, here are 5 strategies for a winning game plan:

• Save money and invest for retirement.
• Strictly follow a set budget.
• Keep yourself out of debt.
• Diversify your portfolio.
• Find a dependable financial advisor.
  
  

Time is gold as we prepare for our golden years. Now is the right time to work on our game plan so we can retire comfortably the way we want. Be on the right track toward financial stability. Talk to a Sun Life advisor today. 
 

Establish your retirement income today.

Our finances will change once we retire and it may no longer be able to support our needs. We can prepare for this by developing habits that will establish our retirement income flow as early as now.

 

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