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7 Tips to Help You Catch Up For Retirement

7 Tips to Help You Catch Up For Retirement

7 Tips to Help You Catch Up For Retirement

  1. Open a Retirement Account

The obvious first step is to open a retirement account. There are many retirement plans available in the Philippine market such as Pension Plans, Personal Equity Retirement Account (PERA), Insurance Plans, Financial Funds, and Real Estate among others.

2.  Get Out of Debt

Next step is getting out of debt. Most people do not contribute to retirement savings because of debt. So build a plan to get out of debt, create a budget to keep track of your money, and address that debt head on.

3. Increase Your Income

It’s also likely that you’ll need to improve your earnings. Earning more money could mean working longer hours at your current job, working your way up the corporate ladder, or starting a side business. If you can find a way to raise your income, you’ll have a stream of resources to save for retirement that can easily increase and grow exponentially once invested.

4.  Set Goals

If you have objectives in mind for how much you want in your retirement account at a specific age, it could set a fire under you and push you to get your retirement savings in gear.Divide the amount you intend to have by the number of months before you reach the age you want. This will show you how much money you’ll need to deposit into a retirement account each month until you reach your target.

5.  Automate Saving and Investing

Many people struggle with having the discipline to constantly deposit money into their savings account. The best way to avoid this is to invest money from your bank account automatically each month. You won’t have to worry about it, put it off, or forget about it in the future.

6.  Catch Up Contributions

The maximum PERA contribution per year is Php100,000 for Local Filipinos and Php200,000 for Overseas Filipinos (OFs). So if you’re over 50, try to hit your retirement fund targets as much as possible.

7.  Relocate or Downsize

Relocating to a smaller, lesser expensive home may allow you to put money into savings and retirement accounts right away. If you live in a high-cost location, you may want to consider moving to a lower-cost area. This can also free up funds for investment accounts by purchasing a less expensive home and saving on living expenses.

Suggested link : https://investmentsph.com/

Explore more : https://retirementprojectph.com/contact-us/

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