Do you know that only 2% of Filipinos are financially independent by the age of retirement?

Why do you need to plan for  your retirement?

Based on survey only 2% are financially independent by retirement age, so what happens to the 98%?
Looking at the table above, 45% depend on their relatives, 30% rely on charity and 22% continue to work.


Please do not join the 98% of the retirees, plan for your retirement early while you still have enough time !


Now, how do we compute for the right numbers?

Let's see the situation below:

Dear Finance Maverick,

I am 45 years old, male and head of the family. My monthly expenses are around 50,000.00 pesos a month. I want to prepare for my retirement. I want to retire at age of 65. How much money do I need to save to be able to live comfortably when that time comes?

Thanks,

Mr. Anonymous

TABLE 2

After 20 years, cost of living of 600,00.00 per year will become 1,591,978.62 per year because of 5% inflation. Please see above table 2.0


Now if the retiree will still live  up to 80 years old , that's 15 more years. We will multiply  1,591,978.62 by 15 years,  then we will be needing  23,879,679.40.( Inflation not factored in  anymore since 15 years is just an assumption)



If he had other assets by the time or retirement, let's say retirement money from employer  amounting to 3.0 M plus 2.0M  other type assets, then we can  deduct 5.0 M from 23.979 M, net amount will be needing is 18.979 M.