It’s never too late: How to plan for your retirement now!

Filipinos are among the most anxious when it comes to retirement. This makes a lot of sense as the Philippines ranks among the worst pension systems in the world, according to the 2019 Melbourne  Mercer Global Pension Index. 

Many Filipino workers rely on savings from their salaries for their retirement. Anecdotally, others plan—or are forced—to rely on their children for support. 

Needless to say, these are not sustainable options. Workers past retirement are forced to return to the workforce because of this. Unfortunately, this is an option not available to everyone. 

Ideally, every Filipino should be preparing for their retirement as soon as they start working. But if you did not start preparing for retirement early, the next best option is now. All it takes is financial planning—laying out exactly what you need in terms of your retirement and planning how you can get it. 

As we commemorate the celebration of Labor Day on May 1, here are some retirement tips and plans for a comfortable and happy life once you’re already out of the workforce.

Pay off your debts—now! Paying off your debts should be your top priority. Debt is not necessarily bad. But if you’re saddled with debt by the time you have retired, this can be a major issue. Without a regular source of income, this can be an impediment. 

Own real estate. Aside from debt, you would not want to pay rent every month after retirement. Acquire property that you can pay off before you turn 50 to 60 years old. The value of real estate appreciates too, especially in a good location. You can even rent it, out eventually, providing you with an additional source of income. 

Calculate your needs! Use a retirement calculator online to help you compute the amount you will need for retirement. It computes your monthly expenses, taking inflation into consideration. According to an article published in Forbes Magazine, your retirement savings should be your yearly expenses times 25. Using these computations, you have a general idea how much money is needed to save up before retirement—and what kind of savings and financial planning based on how many more working years you have left. 

Check out your pension options. The Social Security System (SSS) is a pension plan that can provide either a monthly pension or a lump sum amount, depending on your total lifetime contributions. This is easily the most accessible pension plan in the country, as you are mandated by law to have SSS contributions as an employee (which could be covered by your employer or deducted from your monthly salary). To qualify for an SSS pension, you need to have made a minimum of 100 payments—which you can accomplish in roughly 10 years. To supplement this, you can join the Personal Equity Retirement Account (PERA), a voluntary retirement contribution plan accredited by the Bangko Sentral ng Pilipinas that allows you to invest up to P100,000 annually. You can withdraw your contributions when you reach 55 y  after you have made five years worth of contribution. 

Consider investment funds and other financial products. If you feel you have years to catch up on when it comes to saving for your retirement, consider investing in financial instruments that can help you realize your financial goals. But if you feel this is all too daunting, you can reach out to financial experts who can help you plan your financial journey. RCBC Trust and Investments Group, for instance, offers affordable UITF products that can support novice investors navigate their way around investing. Apart from this, they also offer financial planning services ranging from investing to estate planning. It offers a holistic approach as a relationship manager will coordinate with you all the services needed to manage your financial matters and requirements.

To learn more on how RCBC Trust and Investments, can help you, visit