What You Need To Know About Retirement Planning - The Thrifty Pinay

A lot of people neglect the idea of retirement planning simply because it’s boring, it looks complicated, and it’s something you do for the long term. But what I usually tell my followers during my retirement seminars is that retirement planning is not for entertainment. Once you understand the whys and the hows of retirement planning then then there is a likelihood that you will enjoy sticking to it especially when you see your investments portfolio growing massively.

Retirement is like taking a vacation

My family and I travel occasionally and every time we go on trips, I would always have the same realization: Iba talaga ang naibibigay na lakas ng loob kapag may pera ka.

One time when we were island hopping in Palawan, as I was watching my husband and my son playing on the seashore, I reminded myself again that “This is how it feels to be able to afford a trip like this, to buy anything we want without worrying if we would go overbudget”.

My husband and I have been preparing for this for months so it is just rightful to not be restrictive. After all, that’s not what being thrifty is all about.

But of course, we’ve had our fair shares of tight-budgeting. Years ago, before achieving this life and before we started investing, whenever we would go to my husband’s hometown, we would have discussions like “Should we book the special bus so we have more leg room during our 8-hour journey?” or “Bibili ba tayo ng pasalubong? O sa susunod nalang kasi pamasahe nalang natitira sa atin.”

Believe me when I say I despised that feeling of restricting myself! But because of planning and delaying gratification, it has paid off and has led us to the life we have right now.

Now, let’s talk about you. Ask yourself: When was the last time you traveled somewhere and you were able to spend freely? When you were spontaneous and had the freedom to explore? Didn’t it feel liberating?

This same framework can be used in our real adulting life. We need to build our savings, investments, and most of all, our retirement. So when the day comes that you would like to retire, your doubts and fears will be replaced with confidence, hope, and gratitude because you know you have been preparing for your retirement throughout the years.

Reasons why Retirement Planning is important

Whether you aim to retire in your 40s by achieving FIRE or you want to retire at 65 because it is mandated by law, you should know the multitude of reasons why you need to plan for your retirement:

1. It can help you pay for emergencies during your golden years

2. You can decide when work becomes optional for you

3. You’ll enjoy better health

4. You can live your best life as it can help tick off items in your bucket list

5. You won’t have to depend on your children to support you

6. Your family will appreciate you more

7. Your money will keep up with the cost of living

I hope this gives you a new perspective on retirement. Remember that retirement planning is more than just saving money; it’s about ensuring you can live comfortably and securely, enjoy your retirement years, and face the future with confidence.

Featured Photo by Aaron Burden on Unsplash

By Ameena Rey-Franc

Recognized as one of the Top Finance Blogs in the PH. Ameena Rey-Franc (founder of TTP) is a former Banker and BS Accountancy graduate turned Blogger, Keynote Speaker, and entrepreneur. Currently an RFP delegate, she is also the Author of a book about Financial Resilience and has held seminars for reputable companies like GrabFoodPH, Pru Life UK, VISA, JPMorgan Chase& Co., Paypal, Fundline, Moneymax, and many more. The Thrifty Pinay's mission is to empower women to LEARN, EARN, and be FINANCIALLY-INDEPENDENT no matter what life stage they are in.