Inflation is an invisible enemy, so you won’t notice the impact today or tomorrow. After all, a 5%
increase per year, is just a 0.4% increase per month, and a 0.01% increase per day. It’s impossible to notice on a day to day basis.
The full impact of failing to fight inflation will be realized when you decide to retire. If you do not
have enough money for your retirement, you’ll spend the last of your days being financially
constrained, and a financial burden to the ones you love most.
Imagine that you’re 65 years old and no longer working. Who will pay for your food, water,
electricity, medicines, and doctor’s fees? Are you sure your pension will be able to cover for all of that ? If we follow Filipino culture, it would be the kids who will support the parents once they retire. If your children are just starting to build their own family, you’ll be competing for resources against your own grandchildren! Is this something that you would like? Is this something you think your kids would like ? (I know the picture I’m painting here is very grim. That’s because from an economic standpoint, that’s how it really is.)
You Have a Long Way to Go
The average Filipino lifespan is 75 years old. So if you retire at the age of 65, you’ll need to have
enough money to support yourself for about 10 more years. Now, to know how much that will cost, I
prepared quick estimates in the table below.
In order to use it you just need to do three things.
1. Estimate how much you’ll be spending per month if you retire today.
2. Then look for the table matching that amount of spending you answered in #1.
3. In that table, look at the age nearest to yours in the left side of that table
The Total Cost of Retirement is the amount of money that you’ll have to spend over the next 10
years after your retirement. That’s the amount you need to have in preparation for your retirement.
Now, I’d like to bring your attention to the difference of the Yearly Cost of Living vs. Current Spending.A P480, 000 per year lifestyle today will be P4.3 Million in 45 years! If you doubt the numbers shown in the tables, by all means go ahead and try to find a more specific answer. The important thing is that you know and plan for your retirement because someone will definitely have to pay for it.I sincerely hope that the amount you have just seen scares you into taking action immediately.Investing is very easy to delay, easy to ignore, but the trade off from that is extremely painful.