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By Abigail L. Ho
Philippine Daily Inquirer
First Posted 21:47:00 08/25/2009
MANILA, Philippines - Companies from the United States and Europe are looking at investing in the country’s retirement sector, with plans already on the table to set up “continuing care facilities” for retirees.
In an interview yesterday, Philippine Retirement Authority (PRA) acting general manager Reynaldo Lingat said an American firm was looking for idle lands in Clark Field, Pampanga, and even beyond, including Subic Bay Freeport in Zambales to Morong in Bataan.
The land would be used to house continuing care facilities for retirees, he said.
These facilities will include a whole package of products and services that retirees can avail themselves of, including housing, healthcare and lifestyle facilities.
A European company, Lingat said, was also planning to put up facilities for retirees, particularly those in the “assisted” and “nursing” sectors.
According to him, retirees can be divided into three categories: active, 35-49 years old; assisted, 50-65 years old, and nursing, 65 years old and above.
“We should be targeting the assisted and nursing sectors. We have to have the facilities that can accommodate them. We need investments, either from the retirees themselves or from other investors,” he said. “Once (these facilities) are established, there will surely be a domino effect.”
He said a Korean group was also looking at developing some retirement facilities on parcels of land along the Subic-Clark-Tarlac Expressway (SCTEx).
“Investments (in the retirement sector) are increasing this year, at least based on the number of inquiries that we have received in our office,” he said.
PRA accreditation specialist Bing Aquino said there were currently 85 PRA-accredited institutions in the country.
Of these, however, only eight were targeted at the elderly, she said. The others were mostly in the real estate and resorts sectors.
PRA chair Edgar Aglipay said about 20,000 retirees enrolled in its program, 30 percent of whom were Chinese, 20 percent Japanese, and 10 percent Koreans. For 2009, he said PRA was targeting to have another 4,000 enrolled retirees.
Tuesday, August 25, 2009
Retirement is inevitable
It is really a pity when people of means, still young and able, suddenly faces a blank wall at the time of their mature lives. Somehow you cannot fully blame them all. They have to know what to do, they have to learn from their mistakes and be aware that if there is no savings, there is no investments, and if there is no investments there is no future for them.
With these in mind, we will try to share whatever knowledge we get in whatever source we can...........
Aim to retire with no debts
Q: After working hard in the corporate world for more than 30 years, I am looking forward to retiring at an early age, 55, so I can relax. I am in the retail industry, and sometimes work would include weekends over the years. I want to have more time for my family and myself when I retire – and that's about 10 years from now. What are the things I should prepare and aim for in time for my retirement? – Gloria
A: Retirement is a wonderful time. Indeed, after working for most of your life, you can look forward to a time that is more laid-back, when you can do what you want provided you have the means to do so.
That's the key to having an enjoyable retirement: having a nest egg that is enough to meet your needs for the lifestyle you want.
Have you figured out how much you will need to have at retirement? In a nutshell, it may be the amount you spend today, minus bills for your children's education and home mortgage, adjusted for inflation.
That is assuming you have some added protection already in place such as health and hospitalization insurance.
Otherwise, you have to add the cost of health care too, which may become more expensive as one grows older.
And because you will have no active income coming in at retirement, there's one other important thing you need to do: Wipe out those debts in time for retirement.
Aim to retire debt-free. It will free you up from worrying where to get the money to pay your debts. You will also have more money to use for your day-to-day needs.
From now until the time you retire, do these simple steps to debt reduction:
1. List down all your debts. These include car loan, housing loan, even credit card debts and personal loans from family and friends.
2. Make a payment plan. See how many years you have to pay off your loans. If one loan will take more than 10 years (your planned retirement schedule), talk to your creditor and ask if they can give better payment terms for a shorter payment period.
3. Prioritize paying off the debt with the highest interest. Then pay off the next debts on your list, until they all become zero.
4. Avoid incurring new debt while paying off existing debts.
5. Pare down your current expenses and use freed up money for debt payment. Look at your spending and see which expenses are not really necessary or can be foregone.
6. Look for ways to raise more cash and use the money to pay debts. Sell your unused stuff on the Internet – your “garbage” may be someone else's treasure, as they say. Find a sideline you enjoy doing and which you can do even with a hectic job (examples: selling, baking).
7. Stay committed to paying off all your debt. It may take years, but attaining your goal of going into retirement debt-free is worth it.
8. Continue to save for retirement. Once you have paid off all your debts (or even while doing so), set aside money to add to your retirement nest egg. It may mean you'll need to live simply to achieve that, but the returns – both financial and emotional –will be good for you.
On another note, although you want to retire from corporate life early, you might want to consider not retiring from work altogether.
Given that man's life span is longer now than it used to be, there is a possibility you might live up to 80 or beyond – that's an additional 25 years from your retirement age.
Would your retirement fund be enough to sustain your lifestyle for 25 years or more? Working, even part-time, may help you live to the fullest in your sunset years.
It will also keep your mind sharp. Aside from that, you will be helping other people by sharing your knowledge and skills in the workplace. Think about it. If you retire debt-free, working will be more a joy than a necessity. We wish you the best!
*Disclaimer: Readers are solely responsible for their own investment decisions and should thus conduct their own research and due diligence and obtain professional advice. INQUIRER.net will not be liable for any loss or damage caused by a reader's reliance on information obtained from our web site. INQUIRER.net receives no compensation of any kind from companies or industries or funds that are mentioned here.
With these in mind, we will try to share whatever knowledge we get in whatever source we can...........
Aim to retire with no debts
Q: After working hard in the corporate world for more than 30 years, I am looking forward to retiring at an early age, 55, so I can relax. I am in the retail industry, and sometimes work would include weekends over the years. I want to have more time for my family and myself when I retire – and that's about 10 years from now. What are the things I should prepare and aim for in time for my retirement? – Gloria
A: Retirement is a wonderful time. Indeed, after working for most of your life, you can look forward to a time that is more laid-back, when you can do what you want provided you have the means to do so.
That's the key to having an enjoyable retirement: having a nest egg that is enough to meet your needs for the lifestyle you want.
Have you figured out how much you will need to have at retirement? In a nutshell, it may be the amount you spend today, minus bills for your children's education and home mortgage, adjusted for inflation.
That is assuming you have some added protection already in place such as health and hospitalization insurance.
Otherwise, you have to add the cost of health care too, which may become more expensive as one grows older.
And because you will have no active income coming in at retirement, there's one other important thing you need to do: Wipe out those debts in time for retirement.
Aim to retire debt-free. It will free you up from worrying where to get the money to pay your debts. You will also have more money to use for your day-to-day needs.
From now until the time you retire, do these simple steps to debt reduction:
1. List down all your debts. These include car loan, housing loan, even credit card debts and personal loans from family and friends.
2. Make a payment plan. See how many years you have to pay off your loans. If one loan will take more than 10 years (your planned retirement schedule), talk to your creditor and ask if they can give better payment terms for a shorter payment period.
3. Prioritize paying off the debt with the highest interest. Then pay off the next debts on your list, until they all become zero.
4. Avoid incurring new debt while paying off existing debts.
5. Pare down your current expenses and use freed up money for debt payment. Look at your spending and see which expenses are not really necessary or can be foregone.
6. Look for ways to raise more cash and use the money to pay debts. Sell your unused stuff on the Internet – your “garbage” may be someone else's treasure, as they say. Find a sideline you enjoy doing and which you can do even with a hectic job (examples: selling, baking).
7. Stay committed to paying off all your debt. It may take years, but attaining your goal of going into retirement debt-free is worth it.
8. Continue to save for retirement. Once you have paid off all your debts (or even while doing so), set aside money to add to your retirement nest egg. It may mean you'll need to live simply to achieve that, but the returns – both financial and emotional –will be good for you.
On another note, although you want to retire from corporate life early, you might want to consider not retiring from work altogether.
Given that man's life span is longer now than it used to be, there is a possibility you might live up to 80 or beyond – that's an additional 25 years from your retirement age.
Would your retirement fund be enough to sustain your lifestyle for 25 years or more? Working, even part-time, may help you live to the fullest in your sunset years.
It will also keep your mind sharp. Aside from that, you will be helping other people by sharing your knowledge and skills in the workplace. Think about it. If you retire debt-free, working will be more a joy than a necessity. We wish you the best!
*Disclaimer: Readers are solely responsible for their own investment decisions and should thus conduct their own research and due diligence and obtain professional advice. INQUIRER.net will not be liable for any loss or damage caused by a reader's reliance on information obtained from our web site. INQUIRER.net receives no compensation of any kind from companies or industries or funds that are mentioned here.
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