- Start planning and creating a retirement plan early to benefit from long-term gains.
- Invest in real estate as it has the potential to appreciate over time and provides a passive income.
- Take advantage of retirement plans such as PhilHealth and SSS, and consider personal retirement savings.
- Ensure financial stability by planning with the proper knowledge and preparation.
- Start a small business to take control of finances and secure a retirement fund for the future.
As an Overseas Filipino Worker (OFW), you may think that your years of hard work are enough to secure your retirement. However, with the rising cost of living and rapid changes in the economic landscape, relying solely on your current income may not be enough to guarantee financial security in your golden years.
This article will discuss essential advice on how OFWs can secure their retirement and ensure their future is more financially secure.
Start with a Plan
The first step in securing your retirement is to create a plan. It may require careful planning and financial decision-making, but the sooner you start, the better off you will be. One key strategy is to establish a solid retirement plan.
This should include building an emergency fund, investing in a mix of long-term stocks and bonds, and contributing regularly to your pension plan or individual retirement account. With a clear plan, you can feel confident that you are taking the necessary steps to secure a comfortable retirement, no matter where your career or travels may take you.
Invest Your Money Wisely
As an overseas Filipino worker, securing your retirement is essential, and one great way to ensure financial stability is through wise investments. While many options are available, investing in real estate can be a smart move. Real estate is a tangible asset that has the potential to appreciate over time, and it can provide a passive income through rental properties or even when sold.
For those planning to purchase a retirement home, investing in a pre-selling house and lot in General Trias is worth considering. This area offers excellent value for money, with a lower cost of living and proximity to essential services. The city has a strong growth outlook, making it an ideal retirement destination.
Take Advantage of Retirement Plans
Overseas Filipino Workers (OFWs) play a significant role in the Philippine economy, with their remittances contributing to the country’s gross domestic product. However, while OFWs work hard to provide for their families back home, securing a financially sound future is essential, especially for their retirement years.
Without proper planning, retired OFWs may find themselves struggling financially. So, what retirement plans can OFWs consider to ensure a comfortable and stress-free retirement?
PhilHealth
The Philippine Health Insurance Corporation (PhilHealth) is an essential retirement plan for OFWs. With PhilHealth, OFWs can avail themselves of medical assistance and hospitalization benefits. It’s a relatively inexpensive way to secure access to healthcare in the Philippines. Moreover, OFWs paying their PhilHealth contributions for at least 120 months or ten years are eligible for lifetime coverage, which means they no longer need to pay their premiums.
Social Security System (SSS)
Another retirement plan OFWs can consider is the Social Security System (SSS). For those who have worked abroad, the SSS has a payment scheme for overseas members to continue their SSS contributions.
Once qualified, OFWs can receive a retirement pension, disability benefit, or other social security benefits. However, starting to contribute as early as possible is essential to receive higher benefits when retiring.
Personal Retirement Savings
OFWs seeking more flexibility and control over their retirement funds can opt for personal saving plans. These plans allow OFWs to set up their retirement accounts and invest in various avenues such as mutual funds, stocks, and other financial securities. These plans are beneficial for higher returns than traditional savings accounts.
Businesses and Entrepreneurship
OFWs who want to take a more active role in securing their retirements can look into entrepreneurship or starting their business. Starting a small business can help OFWs grow their wealth, generate income, and provide job opportunities for other people. It’s an excellent way to take control of one’s finances and secure a retirement fund for the future.
Final Thoughts
In conclusion, securing your retirement is a crucial aspect of our financial well-being, and as OFWs, saving for the future should be our priority. Remember to start planning and saving early, invest wisely, take advantage of available retirement plans, and consider entrepreneurship a viable option to secure your retirement. With the proper knowledge and preparation, you can ensure your retirement years are as comfortable and financially stable as possible.
