Sadly, there are these Filipino mistakes and myths about personal and household financial management that dictate how we live our lives and raise our children. But don’t fret, because as long as you have the luxury of time, there’s something workable about your situation. The problem is that most of us today don’t prioritize retirement planning at all.
Here are some mistakes Pinoys always commit when it comes to retirement:
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Dependence on relatives
Have you heard “Anak, mag-aral ka ng mabuti, para ‘pag nagtrabaho ka na, ikaw na ang bahala sa amin.” It’s not a bad thing when you’re children and relatives give you money when you retire, it’s not even bad to ask. However, the issue about it is that it’s not good and healthy, either. Most Filipinos believe that when you raise your children – feed them, give them the best education or protect them from any harm – they are obliged to pay you back someday. Parents raise their child because it’s their responsibilities to do so that goes along with children’s right to be sheltered, fed, and given the opportunities in life. Your children are your obligations, not your investment where you can expect returns.
This doesn’t mean, though, that you should ignore your parents when you’ve reached your point of success or even when you’re already earning a decent income. It’s a pride and joy to give your parents something as their reward for their hard work on nurturing you – there’s never wrong with that. But if you are the parent, would you want to depend on your kids after decades of working? You can have a choice.
Filipinos often retire in the last decades or years of their lives. If you work because you don’t want to stop working or making money because you feel energized or passionate about it, that’s perfect. But you have to keep in mind the difference, the great difference of working to keep your enthusiasm and avoid boredom versus working to constantly bring food for your family.
The word retirement usually connotes a gray-haired man, tired-looking because of more than 4 decades of working every day but if you strive to become the best of yourself in the first decades of your life, you will reap the fruits of your hard work early on. It’s just a matter of proper discipline and careful planning.
Retirement doesn’t mean you have to be old; it’s when you’re ready. If you’re 20-something, and you wish to start funding your retirement, that’s good. The earlier, the better.
Relying on Government/Company retirement package alone
Sure thing, social security pension plans or your company’s retirement package could be a lot of help for you and your family. However, it’s not ideal to rely on them solely. SSS (Social Security System) pension is low in terms of interest and does not adjust to inflation rate. Pension plans are great, but it’s not enough, especially if are to live more years in retirement.
How do you see yourself retiring?
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