Filipinos are among the most hard-working people in the world. Yet most of them struggle to save for the future. Hence, they can’t retire yet at the old age. What causes this challenge among Filipino workers?

Learn how Filipinos can retire comfortably at 60. The leading cause is not having enough money to save. Many Filipino workers indeed get paid low wages. However, if we tolerate the mentality of not saving because of low wages, then we can’t empower the workers. They need to learn workable saving strategies to enjoy the fruits of their labor someday.

Considering that lack of awareness about saving money is the second-leading reason most Filipinos can’t retire even at the old age, the working class will significantly benefit from education. If they can take these steps, retiring comfortably at an old age will become a realistic goal for the Filipino working class:

1. Unlearn false beliefs about Money and Savings

First, Filipinos must unlearn the false beliefs they have developed about money and savings. For instance, a survey has found that Filipinos believe that savings equivalent to 2.1 years of income can already sustain them post-retirement. On the other hand, the regional average retirement savings is equivalent to 12 years worth of income.

Still, 12 years is relatively shorter than the Taiwanese’s preference, which is to save 19.6 years’ worth of income for a comfortable retirement.

The exact amount you need to save for retirement may not be written in stone, but 2.1 years’ worth of income is simply too little. However, the survey has also found that Filipinos expect to continue working after retirement. In that case, saving the above mentioned income may be reasonable. But learning that-generally speaking-you need more money to retire comfortably is important. We can’t promote saving so little, especially to someone who doesn’t plan to keep working in their 60s.

2. Develop a realistic financial / retirement plan

Filipinos tend to behave complacently about their future. They leave everything to chance instead of taking action to meet their goals. Worse, some of them depend on their family members to take care of them in their old age. This mentality has triggered a social media campaign against parents who treat their children as retirement plans.

It is not yet too late to do a financial plan. Determine when you’d like to retire permanently and estimate the amount you need to live comfortably without work. Then, determine the source of your retirement income and evaluate your lifestyle.

The healthier you are, the more money you can save because you don’t need maintenance medicines and frequent medical treatments. So avoid the habits that will trigger such expenses. That small step will make a significant difference in your retirement life.

3. Build a retirement fund

Most Filipinos rely on their Social Security System (SSS) contributions after retiring. If they worked in the public sector, they rely on its SSS equivalent, Government Service Insurance System (GSIS). These two are the most common retirement funds in the Philippines.

But while they are sustainable for the most part, you have other, more secure options for a retirement fund. You can try BSP’s Personal Equity and Retirement Account (PERA). It’s available for Filipinos aged 18 and above. You can contribute PHP100,000 to the account every year or PHP200,000 if you are an Overseas Filipino Worker (OFW).

Long-term investment funds are another viable option. You can initially invest as little as PHP10,000 and contribute at least PHP1,000 to it periodically. Don’t worry; you won’t venture into long-term investments alone. Reputable banks or financial advisors will guide you and help monitor your money.

If you are still young, consider buying a life insurance policy. It will be your family’s financial safeguard if you suddenly pass away or become disabled. If you die of old age instead, your beneficiaries can receive a higher amount, particularly if you topped up your insurance fund annually.

4. Don’t rely on family members

Again, don’t treat family members as retirement plans. Your children, nieces or nephews, or younger siblings may be able to take care of you, but they also have their own life to sustain. And even if they willingly take you in, it’s not a reason to be entirely dependent on them.

It’s okay to expect some allowances or monetary gifts from your family. But depending on them for your necessities and health care can run them dry. If possible, treat your family’s monetary allowances as only a bonus. You’ll feel more empowered if you can still pay for your own health care and living expenses at the old age and the rest of your life.

Working in your retirement years isn’t bad. But if you already spent most of your youth working, you deserve to retire at 60 or earlier. Take these steps to enjoy your golden years without worries.