EARLY RETIREMENT PLAN FOR YOU

When you talk about retirement, what would come to mind? Retirement is supposed to be able a time when you will not have to worry about time tables of your work schedule, dealing with difficult co-workers, and best of all, at this time of your life, you should not have to worry about financial restraints anymore.

The question is when you will have reached retirement age, will you have the financial freedom to stop working? We have answered some of the most asked questions about retirement, to help you assess if you are currently ready to face retirement or not.

Is there a specific age by which a person should retire?

In the Philippines, common knowledge is that the retirement age is 60 years old. Many do not know that the law states that if a person does not have a retirement plan, they are eligible to work until they are 65 years old. The mandatory retirement age is actually 65 instead of 60. But would you want to continue working until you will be 65 years old if you do not have a retirement plan?

Can you retire before 60 years old?

Yes, early retirement is possible. Provided that you have the means to survive without needing a salary, you can retire before the age of 65. As long as you are sure you can be financially stable and would have enough money to do everything on your bucketlist and still live a comfortable life, no law would prevent you from retiring at any age you want.

When should a person start planning for their retirement?

The first consideration you have to think about is if your company offers a retirement package. Even if you will be receiving a pension, it is still wise to take out a retirement plan as a backup, you can include a retirement benefit in your life insurance package. You can start investing in life insurance at any age, as long as you can pay for the premiums.

Do I still need to have a retirement plan even if my company offers a retirement package?

As mentioned earlier, it is still a good idea for you to invest in a life insurance plan that has the added retirement benefit just in case you will need more money than you would have anticipated. Your expenses might be higher in the future. You do not know if you will be needing more money for medical costs, or if you will need the extra funds for a certain vacation you will want to take. Nevertheless, it is always a good idea to invest in a way to have more money to spend when you are older.

What are the advantages of taking out a retirement plan?

Investing in a life insurance plan is a way of making sure that you will never have to rely on your family for money when you will be old. It would be an unfair and very difficult situation for you if you will have to depend on your children, grandchildren or other members of your family for monetary support. They will probably give you money occasionally, because it is within the Filipino culture for us to take care of our elders, but it would be a very bad decision to rely on them solely for your expenses and financial needs.

If you are thinking about early retirement, the best option for you is to take out a life insurance policy. This would enable you to decide when you would retire by choice, and not by age. You do not have to work until you are old and gray, especially if you have a retirement plan.