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.

Offerings like the Sun Life Prosperity Achiever Fund 2048 allow you to infuse bond market momentum into unused funds to reach a milestone, like a house, business capital, or retirement fund on a predefined timeframe.

 

Mid-Career Professionals:

During this point of 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.    

The Sun Life of Canada Prosperity Balanced Fund allows investors to grow their portfolios through the Philippine Stock Exchange Index and Bloomberg Sovereign Bond Index, perfect for individuals who want to hatch eggs in more than one basket.

  • 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 experiences 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. For example, Sun Safer Life allows you to avoid costly estate taxes from an untimely demise. Sun Legacy prepares your loved ones to overcome tax liabilities that might dent their inheritance.

  • Explore post-retirement income sources

Since you no longer work, 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.

 

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