Retirement Goals

[yoni]

Ang weird nun sa PERA accounts. When I inquired, yung mga employees mismo ng BPI di nila alam kung ano yon.

As for my retirement goals, ang plan is to live in a condo unit (outlier ata ako, haha) na malapit sa lahat: groceries, spas, salons, and hospital. Pag condo may sariling security and maintenance, and highly accessible both sa private and public transpo. Kasi pag oldie na lessened na mobility and harder to maintain dwelling space. I see this first hand sa in-laws ko, ang laki ng bahay tapos sila lang and 2 helpers, both helpers aging narin. Ang hirap na humanap ng kasambahay na mapagkakatiwalaan ngayon kaya ewan ko lang kung ano na balak nila pag nag-retire na mga helper.

I forgot na my figures pero according to the calculator I used, parang I should set aside 15% of monthly income for investments for the next 25 years to be able to love comfortably upon retirement.

[shi.fluffy]

Yung hindi maganda eh yung sa SSS kasi may maximum ceiling ng salary credit that will serve as basis for your monthly pension. In case of GSIS eh walang limit na naka-set.

Kung mag-work ka sa govt as plantilla staff at may 30 to 35 years kang na contribution sa GSIS, you get a monthly pension equivalent to around 90% of the average of your last three years in govt. Kaya yung iba eh nagtatagal sa govt at kung may salary increase na naka-schedule for the year eh dine-delay nila para mas malaki ang monthly pension na makuha nila. This also explains why the likes of SC Chief Justice De Castro would want to serve as CJ even though less than a month lang sila uupo sa pwesto. Biglang taas ang monthly pension at ang lump sum retirement pay. Ang pinakamaswerte sa govt employees eh mga nag work sa GOCCs at govt financial institutions, like BSP, kasi may provident fund din sila na IN ADDITION to what they will get from GSIS.

Iba pa yung sa retirement pension ng AFP at PNP kasi they retire early–at age of 55, they dont contribute anything sa pension nila, at automatic adjustment ang pension nila everytime may salary increase yung counterparts nila na in active service.

Generous ang GSIS and since govt agency ito, there is almost zero chance na ma-bankrupt ito kasi it can always tax the public anyway.

@yoni On PERA, you can do online contribution sa BDO. I remember inquiring about it via email. Process is similar to when you invest in UITF. They will just ask for how much you want to invest, the tax number of your employer.

Bulk of my money now is invested in PAGIBIG2. They already have a online account system where you get to check your contribution records. Keep your receipts if you did voluntary contribution or ask for certificate of contribution from your employers. I still have around 20K that was not reflected sa system nila or hindi na-reconcile after I changed employers.

On setting up of retirement goal, say you need PHP 700,000 per year or 58,333 per month as retirement income, right now, you need to have 10,000,000 invested in PAGIBIG2 since it has a dividend rate of 7% tax free every year.

So if you want to have retirement income of 1.4 million per year, or around 116K per month of retirement income, then you need to have PHP 20,000,000 invested in PAGIBIG 2.

You also need to take into account yung inflation. So in 30 years time eh mababa na ang real value ng 1.4 million mo.

[UniquelyMe]

@shi.fluffy

you need to have 10,000,000 invested in PAGIBIG2 since it has a dividend rate of 7% tax free every year.

That is very high! How do they manage to find the 7% to pay out to people? How is the money invested?

[davemacho]

@shi.fluffy

Iba pa yung sa retirement pension ng AFP at PNP kasi they retire early–at age of 55, they dont contribute anything sa pension nila, at automatic adjustment ang pension nila everytime may salary increase yung counterparts nila na in active service.

May AFSLAI din ang AFP/PNP where members can contribute and earn 16% per annum from dividends.

@shi.fluffy

I still have around 20K that was not reflected sa system nila or hindi na-reconcile after I changed employers.

Same thing happened to me. Nalaman ko lang nung nag-check ako ng online records for MP2 account. Napansin ko parang mababa yung total ng regular account ko. Buti na lang responsive yung customer care nila, naayos naman kaagad.

@UniquelyMe

That is very high! How do they manage to find the 7% to pay out to people? How is the money invested?

Mostly housing loans for middle-income home buyers. Possibly bumaba ang dividends this year due to loan defaults by those who lost jobs.

[shi.fluffy]

I asked that question myself since there is no way you can give out more than 5% dividend rate in a low interest environment especially when PagIBIG’s housing loans are among the lowest in the industry. I think around 3%. Just trying to take advantage of this vehicle while it is still available. I dont really think it is sustainable though our remittances in PagIBIG have govt guarantee.

@davemacho Maganda din sa mga credit cooperatives. Nung wala pa yung PagIBIG 2, lahat ng pera ko eh nasa credit coop namin kasi mga 6% ang dividend per year at wala pang tax. Sayang lang di ako pwede mag member hahaha.

[arwen]

@UniquelyMe

That is very high! How do they manage to find the 7% to pay out to people? How is the money invested?

I could not recall correctly if it was Pag-ibig or GSIS but one of the the 2 outsourced a portion of their port to an IM. Possibly why. Magaling yung group na yun.

Plus of course the market performed very well in the years mentioned (probably the best even)

[amazingpinoy]

Retire in Metro Manila or anywhere in the Philippines maybe when I am 56-60 years. Save or invest P10 million so that return will be P1 million per year or P80,000 or 100,000 per month. I have P2-3 million in investments.

Good ideas on foundations and scholarships. We can do that. Thank you.