Tag: #RestartingYourFinancialJourney

Retirement planning in the Philippines: your guide to secure your financial future

Retirement is an important phase of life that requires careful financial planning to ensure a comfortable and stress-free future. As retirement approaches, it’s essential to have a solid plan in place to secure your financial stability. Wondering what steps to take in planning for a comfortable retirement here in the Philippines? Check out this guide:

How do I plan my retirement in the Philippines?

Planning for retirement in the Philippines involves several crucial steps to help you achieve your financial goals. Let’s delve into these steps:

  1. Set your retirement goals. Begin by envisioning your ideal retirement lifestyle. Consider factors such as where you would like to live, your desired activities, and any potential healthcare expenses. Setting clear goals will help you determine the financial resources you need to achieve them.
  2. Assess your current financial situation. Evaluate your existing financial assets, including savings, investments, and retirement accounts. Determine how much you have saved for retirement and analyze your income and expenses. This assessment will provide a baseline for your retirement planning.
  3. Calculate your retirement needs. Estimate your retirement expenses, taking into account daily living expenses, healthcare costs, travel, and leisure activities. Consider the inflation rate and potential healthcare inflation to ensure your savings can withstand future expenses.
  4. Explore retirement vehicles and options. Research retirement plans offered by reputable financial institutions in the Philippines. One such option is Sun Life’s range of retirement plans, including Sun MaxiLink Prime, Sun FlexiLink, and Sun MaxiLink One. These plans provide investment opportunities along with insurance coverage, allowing you to grow your retirement funds while safeguarding your future.
How do I start a retirement plan?

Starting a retirement plan is a proactive step towards securing your financial future. Here’s how you can get started:

  1. Determine your risk tolerance. Understand your risk tolerance level, as it will influence your investment decisions. Conservative investors may prefer low-risk options, while more aggressive investors might be willing to take on higher risks for potentially greater returns.
  2. Consult with a financial advisor. Seek guidance from a trusted financial advisor who specializes in retirement planning. They can assess your financial situation, understand your goals, and recommend suitable retirement plans that align with your needs and risk profile.
  3. Establish a budget. Creating a budget is crucial for effective retirement planning. Track your income and expenses, and identify areas where you can cut back and save more. Allocate a portion of your income specifically towards your retirement savings.
  4. Start contributing to retirement accounts. Take advantage of retirement accounts available in the Philippines, such as the Personal Equity and Retirement Account (PERA) or employer-sponsored plans like the Social Security System (SSS) or Government Service Insurance System (GSIS). Contribute regularly to maximize your savings potential.
How much money do you need to retire in the Philippines?

The amount of money needed for retirement varies depending on factors such as your desired lifestyle, healthcare needs, and expected inflation rates. While there is no one-size-fits-all answer, it’s crucial to estimate your retirement needs realistically. Here are some considerations:

  1. Calculate your desired retirement income. Estimate the annual income you would need during retirement to sustain your desired lifestyle. Consider your expenses, including housing, food, healthcare, transportation, and leisure activities. Keep in mind that your expenses may change throughout retirement.
  2. Factor in inflation. Account for the impact of inflation on your retirement savings. Inflation erodes the purchasing power of money over time, so it’s essential to adjust your retirement income needs accordingly.
  3. Evaluate potential income sources. Assess potential income sources during retirement, such as pension plans, Social Security benefits, rental income, or investment returns. Determine how these sources can contribute to your retirement income.
  4. Seek professional guidance. Consult with a financial advisor to help you estimate the amount of money you’ll need for retirement. They can assess your goals, analyze your current financial situation, and provide personalized projections based on various scenarios.

Planning for retirement is a crucial aspect of securing your financial future. By following the steps outlined in this guide, including setting clear retirement goals, exploring retirement plans, and estimating your retirement needs, you can take proactive steps toward a comfortable retirement in the Philippines.

Remember, seeking professional advice from a financial advisor can provide valuable insights tailored to your specific circumstances. Start planning early to maximize your savings and enjoy a fulfilling retirement life.

Note: The hyperlinks and descriptions for Sun Life retirement plans have been included in the appropriate sections of the article to provide readers with direct access to more information.

Header image by pressfoto on Freepik

Rebooting your finances: How to restart your financial journey

Do you sometimes get the feeling that you’re in a financial rut? When you feel overwhelmed with bills and debts, or short on funds? Or when you worry about what you will leave behind for your kids?

It may be time for a financial reset.

In a recent leg of Sun Talks, Sun Life’s series of talks on financial wisdom, Cluster Head Valerie Lagarde-Amora and Financial Advisor Andrea de Guzman provided attendees with pertinent knowledge and stories on how to do just that.

During the session, I learned that taking control of your finances and embarking on a journey towards financial success can be quite a transformative step. Whether you’re starting from scratch or seeking to realign your financial goals, restarting your financial journey is possible at any stage of life.

Sun Talks Financial Journey
Sun Talks Financial Journey
Getting Ready

As the initial phase of the financial journey, this is the time to assess your current financial situation and lay a solid foundation for future success.

  • Take stock of your income, expenses, debt, and assets. This self-assessment will provide clarity on where you stand financially.
  • Set realistic financial goals. Whether it’s paying off debt, saving for a down payment, or creating an emergency fund, clear goals will serve as a roadmap for your journey.
  • Create a budget and track your spending. A budget helps you allocate your resources effectively and identify areas where you can cut back and save.
  • Build healthy habits. Now is also the time to establish patterns of behavior that will keep you fit and healthy for life such as a sustainable exercise routine and a balanced diet.
Sun Talks Financial Journey
Sun Life Cluster Head Valerie Lagarde-Amora
Sun Talks Financial Journey
Sun Life Financial Advisor Andrea de Guzman
Moving Up

When you’re at this stage of progress and growth, you should strive to increase your income, build wealth, and improve your financial standing.

  • Enhance your earning potential. This is the time to go after opportunities for career advancement or consider pursuing additional education .
  • Develop a savings plan and establish an emergency fund. Having a financial safety net allows you to navigate unexpected expenses without derailing your progress.
  • Reduce debt and manage credit effectively. Prioritize paying off high-interest debts and explore options for consolidating or refinancing to ease your financial burden.
  • Explore investment options to grow your wealth. Consider diversifying your investment portfolio based on your risk tolerance and financial goals.
Planning Ahead

At this stage, you should focus on long-term financial security and retirement planning.

  • Evaluate your retirement goals. Think ahead on how you want spend your retirement years and consider savings options to sustain your lifestyle.
  • Assess insurance needs for protecting your assets and loved ones. Adequate life, health, and disability insurance coverage provides peace of mind and safeguards against unforeseen circumstances.
  • Engage in estate planning. Creating wills, establishing trusts, and designating beneficiaries ensure that your assets are distributed according to your wishes.

Review and adjust your investment portfolio to align with your long-term goals. Regularly assess your risk tolerance and make informed decisions based on market conditions and changes in your financial situation.

Sun Talks Financial Journey
Sun Talks Financial Journey
Leaving a Legacy

By focusing on preserving the value of your wealth that you have accumulated over the years and safeguarding your loved ones from costly estate taxes and fees, you can leave a lasting legacy that truly benefits future generations.

  • Create a comprehensive estate plan that maximizes the value of your assets. Working with estate planning professionals, such as lawyers or financial advisors, can help you navigate complex tax laws and ensure your assets are distributed efficiently.
  • Consider life insurance as a way to provide financial security for your beneficiaries. Life insurance policies can cover estate taxes, funeral expenses, and provide a financial cushion for your loved ones in your absence.
  • Regularly review and update your estate plan to reflect changes in your financial situation, family dynamics, or tax laws. By staying proactive, you can ensure that your legacy plan remains aligned with your goals and current circumstances.

The key is to restarting your financial journey is to take action and start today. Regardless of the stage you find yourself in, doing so will pave the way for a brighter financial future. Empower yourself with knowledge, stay committed to your goals, and adapt as circumstances change. Also, remember that seeking professional advice can provide invaluable support along the way.

Sun Talks Financial Journey
Sun Talks Financial Journey

The Sun Talks on “Restarting Your Financial Journey” has illustrated that undergoing a financial reset may not be easy, but the rewards are worth it. Embrace the opportunity to regain control, achieve financial success, and build a solid foundation for the future. Your financial journey starts now—make the decision to take that first step towards a brighter financial future.

Want to get started on journey towards a better financial future. Check out Sun Life’s life insurance products by consulting a Sun Life advisor or visiting its website.

Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of December 31, 2022, Sun Life had total assets under management of CAD 1.33 trillion. For more information, please visit http://www.sunlife.com.