OFW… Do you have a RETIREMENT plan?
May 25, 2011 6 Comments
Many OFW’s after working many years abroad was not prepared for their retirement.
Most of the time we’ve heard a sad story of OFW that works for more than 20 years abroad but, end up with nothing after they returned home.
Since, we are getting a higher compensation abroad.. the habit of saving was never become a part of our plan. Sometimes, we think that our high salaries abroad are perpetual and we must enjoy the luxuries it can offer.
The truth about our financial status will only realized after the time that we are near our retirement age, and our retirement purse is empty or only half-full.
This is the most tragic moment for a Filipino working abroad.
I think that 2 reasons why most OFW’s ended broke is they lack financial literacy and discipline.
I will agree that most OFW lacks financial literacy. Most Filipino’s working abroad only knows a bank savings account as their primary investment. Most don’t know other investment vehicles such as mutual fund or unit investment trust fund.
Last month, I attended a Financial planning seminar in Bangkok, Thailand. It was conducted by Marketing Group in the Philippines selling insurance, health care, real estate and investment products. When the Speaker from an asset management company talks about the mutual fund, most of the attendee was in total lost.. Some of them are thinking that mutual fund is like insurance and others were thinking of directly participating in the stock market trading when they go into the mutual fund investing.
Also, most OFW thinks that their SSS pension (in case that they are continuously paying their SSS contribution while they are working abroad) will be enough for their retirement.
Let me give you a living example about the SSS pension, my Father after working and contributing almost 40 years in SSS only get 4000php monthly pensioned… Imagined what you will buy from your 4000php monthly pensioned, I guess this amount is only good for your utility bills like electricity and water. Anyway, my father was so lucky to have a handsome and loving son like me to help him….
Anyway, it’s better to have SSS pensioned than nothing. I am not against the SSS however, we can explore other opportunities to earn more.
The habit of saving was never a part of the plan. Most OFW thinks that our stream of income abroad is endless and luxuries must be enjoyed.
We never do a financial health check-up to assess our financial status.
There were some stories of OFW although already 65 years of age were forced to work because of his huge debt. “I just heard this story when I was attending a seminar from 1 of the asset management company in the Phillippines.”
Do you want to end up like this?
So start planning for your retirement now.. You can ask for a financial planner, if you are not keen on the different investment instruments..
For me, I plan to retire at the age of 50 (hopefully)…
I hope my investment will be enough when this time comes.