6 ways to plan for a comfortable retirement

Tuesday, May 4, 2021

Retirement is a new life chapter that takes thorough preparation to ensure that one is emotionally and financially ready for the road ahead. While the planning process may become overwhelming at times, what you do today can help you achieve the lifestyle and retirement goals you want in your golden years.

To help you get started, AXA Philippines, one of the country’s leading insurance providers, shares these useful retirement planning tips:

Set a retirement age. Setting the perfect retirement age varies from person to person, depending on his/her goals and how emotionally and financially ready he/she is. Someone who is 10 years away from retirement could be as young as 45 years old or as old as 65 or 70. When you set a retirement age, make sure that you have sizeable resources so you don’t worry about finances as you enter this exciting new phase in life.

List your retirement goals. Once you’ve set an ideal retirement age/date, list down your retirement goals. Is it to travel? Start your own business? Take up new hobbies? Planning your retirement goals may help you get your finances in order and focus on what you still want to achieve long after you’ve stopped working.

Make smart investments. Achieving your dream retirement means finding the right investment that grows in accordance with your target retirement age. In doing so, you can reap the rewards by the time you need it.

To help you achieve your retirement goals, AXA Philippines offers the Target Date Fund, an expertly-managed, Philippine peso-denominated fund that helps you move closer to your long-term, time-bound goals via a unique investment strategy that can help you navigate through market uncertainties. Customers also have the flexibility to choose the date of their desired investment goal completion (2030, 2035, 2040, and 2045). They can also opt to remain invested in the fund even after reaching their target date as the fund can still provide the capital growth given its remaining allocation growth assets.

Save early and often. For someone who is in their early 20s or 30s, retirement might seem so far off that it may not be part of their immediate life plans. If that describes you, then keep in mind: the years pass by quickly. Building your savings is easier if you start early, so why wait? Start now! Set aside a portion of your income for your retirement savings. Ideally, for an average wage earner, he/she must set aside at least 10 to 15 percent of his/her income monthly.

Maintain good health. It’s harder to achieve your retirement goals if your body is weak and unhealthy. As you age and enter the retirement phase, it’s even more important to get regular checkups, exercise at least 30 minutes every day, eat a balanced diet of protein, fat and carbohydrates, and take the proper vitamins your body needs to maintain a healthy mind and body.

Enjoy the journey. Entering this new life stage may have its ups and downs, but don’t forget to enjoy the journey towards your retirement. Ensure a smooth transition by easing off the workload over several years so you won’t be overwhelmed by the sudden change in your routine. Cherish the people who continue to support you, and strive to remain active with exercise. At the same time, keep learning about being financially secure.

When planning for your retirement, thoroughly assess your current finances and if it’s enough to help you achieve a comfortable life after you’ve stopped working. If you feel you have saved nothing or only a small amount, then use it as motivation to turn things around. Let AXA Philippines be the partner to help you through it. To know more about Target Date Fund, visit http://bit.ly/AXATargetDateFundRetirement.

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