Retirement is a chapter in life that many look forward to, yet few are truly prepared for.
An online survey by Sun Life Asia across the Philippines, mainland China, Hong Kong SAR, Indonesia, Malaysia Singapore, and Vietnam conducted in July 2024 revealed that 21% of retirees in the Philippines had not planned their retirement expenses and close to half express regret over past financial decisions, with 73% saying they have not saved enough for retirement.[1]
Today, many Filipinos live well into their seventies, and many may outlive their retirement savings, as the cost of living doubles approximately every eight to 10 years, according to the Bangko Sentral ng Pilipinas (BSP).[2] Additionally, major illnesses that come with age can deplete years of hard-earned savings.
These realities highlight the urgent need to plan early. To guide Filipinos on this journey, Sun Life Grepa Financial, Inc. (SLGFI) recently hosted a webinar, “Pamana, Property, and Peace of Mind: Retirement and Asset Planning for Every Filipino.”
The session addressed common misconceptions that often prevent Filipinos from prioritizing retirement and estate planning:
- “I’m too young to start.”
One is never too young to start preparing for retirement. The key is time – starting early allows your savings and investments to grow through compounding, where earnings generate more earnings. Waiting too long could also lead to higher costs, as insurance premiums tend to increase with age.
- “I don’t have assets to protect.”
Some believe estate planning is only for the rich. In truth, even modest savings, pensions, life insurance, or a small family home, are worth safeguarding. Retirement planning is about protecting what you’ve worked hard for to ensure your family’s security in the future.
- “My children will take care of me in the future.”
It’s common for Filipino parents to assume their children will support them in their old age. However, by the time one retires, children often have families and responsibilities of their own. Depending solely on them can create financial and emotional burdens, which can lead to strained relationships in the family.
- “I’ll plan later when I have more money.”
Accidents and emergencies can happen anytime. Planning for the future now gives families protection and peace of mind early on. Plus, one does not need a significant amount of money to start planning for retirement. Small steps such as creating an emergency fund, writing a will, or designating beneficiaries can already make a difference.
- “Planning is too complicated and only for experts.”
While legal and financial terms may sound overwhelming, the first steps are simple: organize financial and legal documents, grow your savings, secure basic insurance, and communicate openly with family members to avoid disputes in the future. These actions provide ample protection for the retiree and their family without requiring expert knowledge.
Sun Life Grepa’s Commitment
Life insurance plays a vital role in retirement and estate planning because it provides instant liquidity that helps families handle estate taxes and legal fees without added financial strain.
Recognizing this need, Sun Life Grepa offers these solutions that help Filipinos prepare for retirement and protect what matters most—their family and legacy:
- Sun Grepa Secure Income: A life insurance product that offers guaranteed yearly payouts, offering a stable income stream during one’s retirement years plus scheduled lump sum bonuses at advanced ages to support other needs.
- Sun Grepa Legacy: A protection and savings plan that helps preserve wealth and ensures a smooth transfer to loved ones through guaranteed benefits. It provides lifetime insurance coverage and annual cash benefits that can serve as extra income during retirement, while also securing funds to help heirs settle estate taxes.
- Sun Grepa Power Builder 1: A one-time payment plan that combines guaranteed life insurance protection with flexible investment options. It allows funds to grow faster with no upfront charges and comes with guaranteed acceptance.
Retirement and asset planning may seem daunting, but with the right guidance, every Filipino can enjoy their golden years with independence, dignity, and comfort.
For more information on retirement and estate planning solutions, talk to a Sun Life Grepa advisor or visit www.sunlifegrepa.com.
[1] https://www.sunlife.com.ph/en/about-us/newsroom/press-release/2024/sun-life-survey-highlights-inflation-challenges-for-retirees/#:~:text=Across%20all%20groups%20in%20Philippines,.sunlife.co/TalkToAnAdvisor.
[2] https://business.inquirer.net/310472/80-of-retiring-pinoys-not-financially-prepared
