Put yourself at ease by protecting those you love
06 September 2017
Having enough to support oneself after retirement is a major worry. This is why planning—a better word would be preparing—for retirement should start as early as our 20s. But if you don't know where to begin, consulting a trusted financial adviser in order to figure out how to have a retirement fund to live on is your first step.
Make a visit to any BPI branch and talk to a Bancassurance Sales Executive (BSE) who can help address major concerns when planning for retirement, among which are commonly: (1) managing accessibility of funds and cash flow; (2) determining where to invest funds (for instance, is it better to put it in stocks, bonds, or savings accounts?); and (3) planning for unforeseen events, such as health emergencies and unemployment.
When planning for retirement, it is wise to first set aside an emergency fund that can be accessed for urgent eventualities. Your emergency fund can be at least three to six months of your household expenses or even as much as two years. Then, determine one’s cash flow (income and expenses), as well as income-generating assets and expense-generating liabilities.
Find out how much available funds can be set aside for one’s retirement, as well as other financial needs. Set short-, medium-, and long-term goals. A good idea would be to save money, pay off debts, and invest for the future. Then commit to an amount for one’s retirement fund. Also consider the time value of money, such as inflation and the rate of return on savings and investment vis-à-vis your retirement date.
Once all these are set, have an action plan in the form of a budget to manage one’s income and expenses. Be careful not to overspend and be practical. Learn to live within your means. Your spending habit is one of the factors that can affect your age of retirement. If you spend a substantial amount of your earnings on big-ticket items, instead of, for example paying off your mortgage early, then it follows that you will need to retire later.
Consistency and perseverance in sticking to the savings and spending plan will help one to stay the course toward one’s goals. One of the best way to stay in control of your expenses is to have a tracking system. You can do it with a simple program like Excel, but there are also tons of apps and tools that will do it for you and keep track of each part of your budget throughout the entire month.
Being financially healthy is important to make sure one's retirement is comfortable and worry-free. After all, retirement does not have to mean the end but is actually a new beginning. It is also important to continue living a life with purpose and meaning so that one does not become idle or bored. There are many ways that one can enjoy and live a full life after retirement.
Living a full life also means taking care of one's health so that you're able to do everything you plan to do after retirement. Schedule checkups and preventive exams to work out with your health care provider how to improve and maintain your health.
In order to live a full life in retirement, one needs to be healthy—physically and financially. Being healthy has its own rewards, in that it enables one to do and experience all that one would like to in life.
The Protection Solutions That Reward Your Healthy Choices
Get the power to protect yourself and your family with an affordable life insurance plan. Life Ready Plus is easy on the budget, but offers coverage of up to 30 times your yearly payment to support the financial needs of your loved ones.
The plan gives you fast access to coverage and benefits and can match your long-term financial goals when maintained within an appropriate term.
Let your loved ones enjoy the fruits of your labor even when you’re no longer around. Build Estate Plus is a unit-linked protection plan that will cover your estate taxes after your passing so that you can ease your family’s burden.
It doubles as an investment savings fund that builds Account Value as you pay. It is also integrated with AIA Vitality that provides additional upfront coverage of 20% to your policy and add-ons.
Be in good hands in times of sickness. Let Critical Care Plus, a unit-linked health and life insurance plan, take care of you with financial aid in case of a major illness, so you can focus on getting better and spending more time with your loved ones.
It even gives you more benefits for having good health through the AIA Vitality program that adds 20% upfront coverage and supplemental benefits on your policy.
Critical Care Max will help you make more memories by providing financial aid during the early stages of a critical illness. This unit-linked life and health insurance plan offers assistance on your recovery. You can build a health fund that grows over time, depending on your chosen investment, to pay for other medical costs.
In addition, it comes with a hospital confinement benefit that will replace lost income due to hospitalization. This daily cash benefit may also come with optional benefits like cash payout for surgery-related expenses, allowance for consultation fees, and many others.