5 Quotes That Will Make You Think of Saving Up for Retirement

This is not my personal collection of quotes and images, but I saved copies of these because it somehow pulled some strings and ideas.  Somehow, this has helped me in my quest for financial literacy. 

I am sharing this to you, in the hope that you will somehow learn a thing or two.  And find your own financial freedom.

If you want to learn more financial tips, ideas and seminars, please like http://www.facebook.com/FinancialFreedomBlueprintPH.

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3 Things That You Thought Are Good Retirement Plans

I have come across people who think retirement is age 65, some 60, and others as early as 50. After talking to maybe a thousand people (on rough estimate), one on one, they seem to think it is their right. A right to stop working at the age they prefer or like.  But retirement is more than an age or a number. It is a GOAL.  A goal to stop working and relax and enjoy your last years at a certain age YOU HAVE PREPARED FOR.

If I ask people if they have set aside for this goal, the answer is a blank face with no certain answer to my question. And then, they enumerate things they call retirement plan.  But I disagree.  Here is why:

Image courtesy of http://reachmymoneygoals.com/wpblog
/category/retirement-plan/

YOUR HOUSE & LOT IS NOT A RETIREMENT PLAN.  It is an asset you can keep where you can stay comfortably in your twilight years.  If you sell your house and lot, you will be forced to rent or pay for a home you already had before.  You will just be going to liquidate an asset to get the lump sum money but will diminish and be used up in time.  And some retirement CAN BE LONG. 

But if you’re going to sell it, and buy a smaller house to maintain then I say that is a good move.  Maintaining a big house means big expense.  Maintenance and utility bills can be a big chunk in your monthly expenses so moving to a smaller place can be a good move for you.

YOUR CHILD/CHILDREN IS NOT A RETIREMENT PLAN.  I’ve heard this on and on from ageing parents that they have their children to take them in when they are old, but sorry your child/children is not a retirement plan.  You will put them in a position where they have to financially support you while supporting a family.  The stress they will have to put through just to get everything together and paid is really hard for start-up couples with children.  If you want your child/children to be financially stable, help yourself.  And maybe then, they can start their lives with responsibility and a lot of savings.

YOUR SSS AND RETIREMENT PAY MAY NOT BE ENOUGH.  Your SSS can be your monthly pension and your retirement pay from your employer can be your lump sum pocket money.  But believe me, these two may not be enough for you.  If you want to know how to compute for your monthly SSS pension, please go to http://mamaravesph.blogspot.com/2013/12/how-to-compute-for-your-sss-monthly.html. And if you want to know how much retirement pay you are getting from your employer, please go to http://mamaravesph.blogspot.com/2014/10/abc.html.  Medicine costs at your fragile years can eat up your whole SSS monthly pension, and one hospitalization can eat up your whole retirement pay.

The key here is saving more than what is expected and deducted to you by the government.  You should have shaved a percentage of your earnings from your monthly income and invest in an investment tool you can feel secured.

If you want to know more about Financial Planning tips and ideas, please visit http://www.facebook.com/FinancialFreedomBlueprintPH.

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Retirement Planning Explained in Gay Lingo

Hey there gorgeous!  Yes you sis!  I am here writing something you avoid in our conversation, hoping it will reach you soon.  

Sis, not that pinag-iintersan ko ang 'anda' mo, at hindi mo din naman igi-givesung yan for nothing.  But hey, you have a lot than others and you ought to have it until the last gray hair falls. You are considered as one of the target market of anything fabulous and expensive because you are a fast growing consumer market. Isa ka sa mga 'GOLDEN SINGLES' na tinatawag nila. Young, powerful, fierce, fabulous and maraming 'ades'!  

But dear, everything fades. Everyone gets old. And retirement is inevitable. And when you stop working, salary stops.  I refuse to see you na 'cryola' and walang ma-'lapz', and transform from Golden Single to 'Purita'. I would want to bump into you and still say with much gusto "Gondah, ang taray!" because you maintained your 'fabulousness'.  Hindi kasi bagay sayo ang 'Luz Valdez' ang peg.

After seeing you with your expensive 'bagelya' and clothes, at 'gumora' sa iba't-ibang parte ng mundo, in your older years baka hindi na.  Have you asked yourself how much is your MONTHLY NEED and LIFESTYLE when you grow old?  Ilang 'kiaw' ba naisip mo?  Let's think about 'lafang', 'balay', bills, 'nomu' at kung gusto at kaya mo pang um-'aura'.  50 kiaw?  100 kiaw?  200 kiaw?  'Wit' naman kasya ang SSS pension at company retirement benefit mo sa lifestyle na bet mo.

If you want to compute for your monthly SSS pension, please see http://mamaravesph.blogspot.com/2013/12/how-to-compute-for-your-sss-monthly.html and if you want to know how much retirement benefit you will receive from you company please see http://mamaravesph.blogspot.com/2014/10/how-much-retirement-pay-should-i-get.html.  

O, ano sis knows mo na how much?  Wag ka ma-'imbey' at wala naman tayong magagawa na diyan.  Government rules and laws yan  The only answer here is to save a portion of your monthly income.  10% is a good start, until it becomes a HABIT.

After saving, you should consider investing.  Sis, 'jutay' ang interest ng banks.  Study some investment vehicles where you can put your hard-earned savings to earn better.  You can opt for mutual funds, UITF, bonds and stocks among others.  But you have to do some research and study before investing.  Mas 'dako' ang interest with those investments.  If you want to know more and you are ready to listen to me, you know where to contact me.  

And in our twilight years, I still want to see you my old friend na 'havey na havey' pa din.  Walang 'Hagardo Versoza' at 'chika' ng 'anik-anik' just like the old days.  

O, share mo to. Wag na 'yamey', NOW na!

See you again, my friend!

**I have a lot of gay friends and I call them sis or ateh, as they call me that too. But friend, sorry naman kung di ko masyado na-keri ang gay lingo, although I tried.  I love you fabulous peeps!

*Special thanks and shout-out to my friend from miles away and from childhood, ALLAN JAY REYES, for helping me out on this blog entry and for the friendship through all these years!  Thanks, too, to BRUCE AMOROTO, for helping me out to edit the file and for being a good critic.  Much love from me, my dears.

If you want to know more about Financial planning tips, ideas and free seminar, please go to www.facebook.com/FinancialFreedomBlueprintPH.

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Image courtesy of
http://www.business-standard.com/article/
economy-policy/bajpai-committee
-report-likely-next-month-pfrda-
110101800184_1.html

Retirement is one of those goals any employee dream of.  It is the time when you see yourself, not working but still earning or still has money to spend on your needs and / or wants.  But rarely, employees know how much money they should anticipate to get when they get their retirement pay from their employers or when they can avail of such benefit. 

But who and when can someone avail of a retirement benefit?

An excerpt from the Philippine Labor Law Article 287 says, “Any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract.. In the absence of a retirement plant or agreement providing for retirement benefits of employees in the establishment, an employee upon reaching the age of sixty (60) years or more, but not beyond sixty-five (65) years which is hereby declared the compulsory retirement age, who has served at least five (5) years in the said establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one whole year.. one-half (1/2) month shall mean (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more than five (5) days of service incentive leaves.  Retail, service and agricultural establishments or operations employing not more than ten (10) employees or workers are exempted from the coverage of this provision.”

In short, employees with more than 5 years of service to his/her employer WITH a retirement age of 60 years old or more, but not more than 65 years old may claim for a retirement pay. 

How do you compute this?

For example: Mr. Juan dela Cruz,

60 years old, worked for the same company for 20 years, salary at retirement age is 30,000, Service Incentive Leave Pay = 1,250 per day

RETIREMENT PAY =  ((1/2 month salary) + (1/12 of 13^th month pay) + 5(Service Incentive Leaves Pay))Years of Service

RETIREMENT PAY  =  ((30,000/2) + (30,000/12) + 5 (1,250)) 20

RETIREMENT PAY  =  (15,000 + 2,500 + 6,250)20

RETIREMENT PAY = 475,000

Which means, Mr. Dela Cruz will get Php475,000 in retirement pay from his employer.  Then add your SSS retirement benefit, the total of those two can be a decent amount of money to start your retirement.  (if you want to know how to compute for your SSS retirement benefit, please visit http://mamaravesph.blogspot.com/2013/12/how-to-compute-for-your-sss-monthly.html)  But I warn you that this soon can deplete or diminish as you go through years of retirement expenses, medical and hospital expenses, trips and vacations.  So, plan your retirement and don’t rely on your retirement pay alone.

For more retirement planning tips and ideas, please like the Facebook page: http://www.facebook.com/FinancialFreedomBlueprintPH

** I am not a law student or professor, but this is how I understand Philippine’s labor code.

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Is Your Monthly SSS Pension Enough for your Retirement?

Is it? Do you know how much will you get from your SSS contribution when you retire?

A lot of Filipinos are depending on their SSS contribution hoping it will be sufficient enough for their retirement. I cannot say much because it will depend on your contribution and your need that time. I researched this online through the SSS website and I hope I can shed some light on that particular question.

First, you need to know the bracket of your salary and how much contribution you and your employer gives to SSS. For your reference, here is the table below:

Second you need to know your Average Monthly Salary Credit. To know your AMSC, please refer to column 2 of the table above. 

Please be guided that there is a maximum of Php16,000 AMSC. So no matter how much you want to make your SSS pension higher by making sure you get a salary increase each year from your employer, there is a ceiling amount for that.

This data is from http://www.sss.gov.ph/sss/printversion.jsp?id=53&file=ben3000.html.

How much monthly pension will a retiree receive?

The monthly pension depends on the members paid contributions, including the credited years of service (CYS) and the number of dependent minor children but not to exceed five. The amount of monthly pension will be the highest of: 

1.)  the sum of P300 plus 20 percent of the average monthly salary credit plus 2 per cent of the average monthly salary credit for each accredited year of service (CYS) in excess of ten years; or

2.)  40 percent of the average monthly salary credit; or

3.)  P1,200, provided that the credited years of service (CYS) is at least 10 or more but less than 20 or P2,000, if the CYS is 20 or more. The monthly pension is paid for not less than 60 months.

A retiree has the option to receive the first 18 monthly pension in lump sum discounted at a preferential rate of interest to be determined by the SSS. The option should be exercised upon filing of the first retirement claim. Only advance payments shall be discounted on the date of the payment. The dependents' pension and 13th month pensions are excluded from the 18 months lump sum pension.

The member will receive the monthly pension on the 19th month and every month thereafter.

This is an excerpt from https://www.sss.gov.ph/sss/index2.jsp?secid=73&cat=4&pg=null

For example: 

Given: Mr. A worked for 30 years, Monthly salary is Php30,000/month at age of retirement and Mr. A is now 60 years old and eligible to retire.

How much monthly SSS pension do you get?

    Monthly SSS Pension = (AMSC) 20% + (AMSC) 2% for year of service in excess of 10 years + Php300

*AMSC = Average Monthly Salary Credit. So, to compute for your monthly pension: 

    Monthly SSS Pension = (Php16,000) 20% + ((Php16,000) 2%)20 + Php300

        Monthly SSS Pension = Php3,200 + Php6,400 + Php300

        Monthly SSS Pension = Php9,900

*Please take note of Php16,000 maximum Average Monthly Salary Credit. Even if Mr. A is earning Php30,000 at the time of his retirement, his AMSC is only Php16,000. Or you will get: 

    40% of your Average Monthly Salary Credit

       Monthly SSS Pension = (Php16,000) 40%

       Monthly SSS Pension = Php6,400

According to the guide from the SSS website, you will get the higher value, so you will be given the Monthly SSS Pension of Php9,900. That gave you the answer.

But the real question here is.. Is Php9,900 enough for you to retire? Is it enough for you to depend on that money? You decide.

The key here is RETIREMENT PLANNING. But that is a different topic. ;) 

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