3/23/2023 0 Comments Retirement: A new Chapter of LifeHow to plan a stable retirement plan in the Philippines? What is retirement plan? How does having a retirement plan ensure a stability life for you? What is a retirement plan in simple words? A retirement plan is designed to take care of your post-retirement days and help you lead a stress-free life. Retirement refers to the time of life when one chooses to permanently leave the workforce behind. In simple understanding, retirement planning is not just planning your life after your service with your work but planning in all aspects of your life it is whole or holistic kind of approach because you are going to plan the whole package of your wellbeing. That is why it is important to have a concrete and beneficial choice because we are talking about a beginning of a phase chapter of your Life. Retirement Plan in the in Philippines: Retirement Age
“What is Philippine retirement law? The retirement of employees in the private sector is governed by Article 302 of the Labor Code of the Philippines. The Labor Code provides that any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract.” “Republic Act 7641, otherwise known as the Retirement Pay Law, provides that in the absence of an agreement to the contrary, an employee may optionally retire upon reaching the age of sixty (60) years or more, but not beyond sixty-five (65) years of age which is hereby considered as the compulsory retirement age.” How is retirement calculated in the Philippines? The employee is entitled to a retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one whole year. Unless the parties provide for broader inclusions, the term ‘one-half (1/2) month salary’ means fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more than five (5) days of service incentive leaves. What are the stable ways in preparing a Retirement in the Philippines?
A.1. the sum of P300 plus 20 percent (20%) of the average monthly salary credit plus two percent (2%) of the average monthly salary credit for each Credited Years of Service in excess of 10 years. A.2. 40 percent (40%) of the average monthly salary A.3. P1, 200, if with at least 10 Credited Years’ Service; P2, 400, if with at least 20 Credited Years’ Service. B. Lump sum amount - granted to a retiree who has not paid the required 120 monthly contributions. It is equal to the total contributions paid by the member and by the employer including interest. To qualify for lump sum retirement benefit, a member is at least 60 years old (or 55 years old, if an underground mineworker) for optional retirement, or 65 years old (or 60 years old, if an underground mineworker) for technical retirement, and has paid less than 120 monthly contributions. 4. Insurance is also a good platform source for retirement because it will give you that financial security and the length of coverage you need. 5. Financial Funds it is an effective way to help you to figure out and prepare you to your future scenarios and circumstances assistance you needs that are needed and immediate. 6. PERA - *Republic Act No. 9505 otherwise known as the “Personal Equity and Retirement Account (PERA) Act of 2008”, is the Philippine version of similar laws covering retirement savings output common in more advanced countries Personal Equity and Retirement Account or PERA is a voluntary retirement saving program that supplements the existing retirement benefits from Social Security System, Government Service Insurance System and employers. This is a powerful tool for ensuring financial security upon retirement and promoting a comfortable life during sunset years. In PERA the Retirement planning at an early age facilitates better decision-making for your career, families, and loved ones as there is an assurance of financial security when you retire. The maximum annual contribution is ₱100,000 except for Overseas Filipinos who can contribute up to ₱200,000 annually. For married individuals, each spouse can contribute up to ₱100,000 each. Key Elements in Establishing a Stable Preparing Retirement in the Philippines Whether what kind of scope or source of funds or investment you are preparing your retirement here in the Philippines, for that stability retirement planning you have to determine your expenses and time, if you have the opportunity to prepare as early as possible do it and start with it because this will be you power to balance everything on what you need or what you perceived to have when you retired. The early planning and executing will give you the opportunity of choosing your career, your goals and other factors you want to consider. In establishing you point of planning a stable retirement plan you have to ensure that it will sustain the beginning of your new adventure of life and your needs and remember your choices in your planning will be your result life gaining after you decide to retire. As what the saying goes “Retirement is not the end of your Road rather it is the beginning of the open Highway!” It is you’re definitely the high time period of trying something new and something different. So plan well and Retire in your best version of self-freedom. Written by: Rowena Lansang
0 Comments
Leave a Reply. |
AuthorA real estate marketer in Philippines. Archives
October 2021
Categories |