Your golden years are ideally a time to relax and enjoy the fruits of a lifetime of hard work. Savings and investments continue to grow for you and your loved ones as you watch your children and grandchildren live a good life—this is the dream. For many, this is also the time to see the world with a newfound sense of financial freedom and live life to the fullest. At a more fundamental level, though, your post-retirement life is about ensuring you can continue to enjoy the lifestyle you were accustomed to when you were still working.
But this dream of a comfortable retirement can quickly become a distant fantasy if you don’t plan and prepare for your future. How’s your savings policy to date? Do you have the best life insurance in the Philippines? Are your savings and investments growing the way you want them to? The questions never end.
Planning for your retirement and taking steps to protect your wealth before you hit your 60s is essential. This is to ensure that you can enjoy the benefits of your wealth and maintain your lifestyle during this precious stage of life. After all, we all want to retire with peace of mind while maintaining our estate plan for our family.
Financial planning for your golden years
It’s best to plan ahead and protect your savings and investments as early as now to ensure you have the financial security to live out your retirement years comfortably.
- Budget, save, and invest. At the very least, financial planning should include creating a budget, setting aside money for emergencies and long-term expenses, and investing in long-term investments that will steadily grow your wealth. Here, you must figure out how much you need to live comfortably every month while having funds for unforeseen circumstances.
- Save for retirement wisely. Also, consider saving for retirement in a tax-advantaged account, like a retirement savings and investment account. This will help you save money ahead of retirement while reducing your taxes in the short term. This can also help cover your family’s needs and protect them from any financial burden should you pass on.
- Regularly reassess your finances and investments. Keep a close eye on your financial situation to ensure you're making the most of your money. This means being aware of any changes in the economy that could affect your investments, understanding the associated fees and expenses, and regularly reassessing them to ensure they are working for you.
What about estate planning?
Estate planning is another element of preparing for retirement. This is the process of organizing your finances, savings and investments, and other assets so that they are properly distributed to those you wish to benefit from your estate when you pass away.
Estate planning should include creating a will, setting up a trust, and establishing powers of attorney. A will, for one, allows you to designate how your assets will be distributed upon your death while a trust can help protect your assets and provide tax benefits. Establishing powers of attorney, on the other hand, will allow you to appoint someone to manage your affairs if you become incapacitated.
Note that it’s also crucial to include important documents such as savings policy, life insurance with investment policies, health care directives, and financial powers of attorney in your estate plan. Doing so will help ensure that you and your family are taken care of, even if you can't manage your affairs.
Retiring with peace of mind requires careful planning and preparation. For one, ensure you have the financial security you need to live out your golden years comfortably and to plan for your family and loved ones’ future.
AXA is your partner in starting your financial journey. With its wide range of flexible savings and investment plans and life insurance products, tailored to Filipinos’ lifestyles and needs, you can live every day with peace of mind knowing you are taken care of.
Know you can game plan your way to a comfortable retirement by availing any of AXA’s savings and investment plans. For more information, contact an AXA financial advisor today.
