Planning for retirement is an important endeavor that requires careful consideration and strategic foresight.
In the Philippines, the quality and reliability of the retirement system are severely lacking based on latest reports. That is why crafting a robust retirement investment plan secures your financial future to enjoy your golden years with peace of mind. Here are some tips to help you plan out your retirement:
For New Employees:
If you are just starting out in your career, then it is likely you haven’t started planning for your retirement. However, starting early is the best path to secure both your financial future and your family’s. You can:
Learn about financial literacy
Financial literacy refers to a set of skills for making decisions regarding your savings and investments to accomplish personal financial goals. The time and effort you have put into budgeting and diversifying your portfolio can determine your life trajectory. You can learn more about the current state of your financial wellness through the Money Life Planner.
Develop long-term good habits
Planning and budgeting are habits that you must follow consistently. Be aware of how the cost of living can change over time. Aside from your personal finances, you should also monitor the state of your health regularly. Your health and fitness habits also contribute to your future.
If you want to secure long-term healthcare, choose Sun Life’s various health care insurance packages that can give you the financial support needed to ensure your well-being.
Contribute to your investments consistently
Savings and investments require discipline. Preferably, you should automate the retirement contributions to the right insurance and investment plans every month so they can grow consistently. Be willing to set aside a certain portion of your finances at first so as not to get overwhelmed.
Sun Life created easy and accessible financial investments with the right mix of funds for every risk profile. Whether you are budget conscious or seeking to maximize your earning potential, Sun Life has an investment option to help grow your financial nest.
Mid-Career Professionals:
At this point in your career, you are able to put a substantial amount of your salary into savings and early investments. It is now the period in your life to take calculated risks that will benefit you in the long run. These are the next steps you can adopt to enhance your financial gains and security:
Diversify your financial portfolio
A common mistake among those planning for retirement is focusing solely on savings rather than choosing other investment options. The best way to prepare for your retirement is to make your money earn for you. Sun Life offers different investment vehicles no matter what level of risk you are comfortable with.
Avoid financial losses with the right insurance plan
Life and health insurance policies allow you to take risks without putting you and your family’s financial well-being at risk. Treatment for serious illnesses, sudden job losses, and high inflation can derail your journey to a peaceful retirement. Sun LifeAssure and Sun Fit and Well are among the most competitive products in the market that make life and health insurance accessible to professionals.
Increase your savings rate
Increasing your savings rate based on your monthly gross income benefits your future self in the long run. By tracking your expenses, you can assess where your money goes and how much you can currently invest more into your saving strategy.
Senior Employees:
If you have consistently applied good financial habits, then it is likely you’ve already built yourself a nest egg. So, whether you want to quit the rat race early or approaching regular retirement age, these pieces of advice apply:
Shift to conservative investments
Now that you are near retirement, a switch to conservative investment strategies is ideal to protect your money from price fluctuations. Acquire steady investment returns and avoid risky ones at this stage of your life.
Products like the Sun Peso Starter Fund might be popular among newbie investors, but they allow safe and stable returns higher than standard savings accounts for experienced ones, too.
Plan for your inheritance
When you have accumulated dependable savings thanks to smart investments, you can start to plan for the future of your loved ones' inheritance. Wealth transfer is often difficult because of estate tax but Sun Life offers many insurance options that ensure your beneficiaries receive your assets hassle-free. Insurance plans with estate planning components are essential.
Sun Legacy can help you preserve the wealth you have built over time and efficiently pass it on to your loved ones through the guaranteed benefits the plan provides.
Explore post-retirement income sources
Since you are approaching retirement, it is best to opt for passive income sources to supplement your established wealth. Sun Life offers many options for lifetime insurance investment plans that it will add on to your wealth post-retirement.
Consider a mutual fund designed to provide potentially higher annual returns than traditional bank products. The Peso Starter Fund has a minimum initial investment of only PHP 100.
As you transition into different phases of your career and life, adapt your retirement investment plan to align with your evolving goals and risk tolerance. Whether it's to diversify your portfolio, manage debt, or explore post-retirement income sources, each decision plays a crucial role that shapes your financial future.
With the proper guidance of trusted financial partners, you can navigate these milestones with confidence, knowing that you're building towards a secure and prosperous retirement.
Talk to one of our financial advisors to learn more about options for your retirement plans!
ALSO READ: 4 Habits to Develop Now for a Fruitful Retirement in the Future
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