For decades, Filipinos have always held the belief that having kids equals being rich once they get old. If you ask your grandparents, they are probably the ones who firmly believe that their children are responsible for them during retirement. This is embedded in us due to the Filipinos’ deep-rooted family-oriented culture. Thus, they themselves have no retirement funds, savings, or investments that can sustain them during their geriatric period.
Now, before you pass on this ideology to the next generation, we’re here to tell you that YOUR CHILDREN SHOULD NOT BE YOUR RETIREMENT PLAN. Relying on others for your retirement fund is too risky, considering that at retirement age you may not be able to keep working if your children cannot provide for you. While you’re still working and earning money, here’s what you can do to secure your retirement and be financially free:
1. Plan for your retirement as early as you can
Think about your retirement fund even when you’ve just started working. Set aside a portion of your income consistently for this. Your 30 years in the workforce means 30 years of income to be invested and saved, to survive the next 30 years of retirement.
2. Practice risk management on your finances
As you grow older, take fewer risks when it comes to investing. The fewer years you have earning money, the less risky your investments should be.
3. Only have kids because you want kids, not because you think they’re your ticket to a secure retirement
And here’s the most important tip: to really think about the reason why you want to have kids. If it’s to treat them as part of your retirement plan, then you should not be having kids at all. Children are your financial responsibility, not the other way around. This is the reality that you have to face when you’re thinking about building your own family.
Filial piety does not have to mean having to provide for one’s parents during their retirement. As Filipinos, this might be a difficult pill to swallow, but it’s better to face the reality as early as possible. This way, you’re assured of a secure retirement and a healthy relationship with your family in the future.