Philippine Retirement Immigrant Fund Management Approach

Under the Labor Code, the current retirement age in the Philippines is 60 years. However, a new law passed in 2019 says retirement should not be mandatory. You can choose to continue working after you turn 60. However, do you really want to work for the rest of your life? So today, let's talk about the management of the Philippine Retirement Immigration Fund. Here are the five best retirement fund methods that you can use to prepare for a comfortable life after the age of 60 or earlier!

1. Pension scheme

The pension plan provides you with a monthly allowance or a lump sum that totals your total contributions.

The Social Security System (SSS) promotes one of the most accessible pension schemes in the Philippines. This is considered one of the easiest ways to invest, because SSS contributions are required by law and will be automatically deducted from your salary.

Other institutions such as banks and insurance companies also offer various pension or retirement plans.

2.PERA

The Personal Equity Retirement Account (PERA) has been fully implemented in 2016. According to financial analysts, this is a contribution to the 401K plan, or a Philippine rival in the US IRA.

PERA is a retirement investment plan that can only be obtained through banks, insurance companies or any other administrator recognized by the Central Bank of Bangladesh (BSP), the Insurance Commission and the Securities and Exchange Commission. PERA is a voluntary pension plan that gives you the freedom to save and invest 100 Philippine pesos per year. Moreover, the return is completely tax-free.

3. Insurance Plan

Another way to invest in retirement is through an insurance plan, where contributions bring compensation.

In addition to providing financial protection for your family after your death, insurance plans can also serve as a source of income for your retirement. Insurance companies have developed various plans, including serious illness insurance, to meet your various needs. Some of these tools, such as FWD, even design a way to convert your contributions into investment funds by allowing you to choose financial funds that will help you make money.

4. Financial funds

Banks, insurance companies and other institutions provide various funds that have been invested in various industries. Bonds, stocks and other investments can be very complex. These institutions manage your funds for you, enabling you to participate in these investments without putting you under any pressure. Some insurance companies, such as FWD, even provide funds with dollar income to make more profits.

5. Real Estate

Owning a house or any property by the age of 50 or 60 is one of the main goals of Filipinos, and for good reason. This is a meaningful investment, especially if you can no longer rely on your monthly income to rent. Over time, the value of your house or apartment unit will appreciate, especially if you choose a good location. In addition, having property that can eventually be rented out can provide you with a source of income after retirement.

Investment is always risky. This is why there is no silver bullet or magic wand in financial terms. The key to long-term financial security, analysts say, is investing in a combination of multiple plans or the best retirement savings plan. Contact your insurance agent or financial planner immediately to start your retirement plan.