Many of us dream of retiring at 65 (or earlier, if possible) and, free from urgent commitments and responsibilities, spending our days doing the things we love—traveling, spending more time with friends and family, exploring hobbies. It’s a pretty picture, and it’s not as far-fetched as it may seem. In fact, there are things you can do today to help you get on your way to achieving a comfortable and worry-free retirement. 

1. Don’t delay.

It’s never too early to start planning for retirement. Your senior years might seem light years away while you’re in your prime, but think of it this way: The sooner you begin, the more time you’ll have to fill the well that will sustain you during this stage of your life, and the more you’ll have to be able to enjoy the fruits of your hard work. So, as early as now, ask yourself questions like, “How much do I need?” “What type of investments should I make to achieve all that I need?” and “How many years do I have to build my retirement fund?” Time is on your side when you’re young; use it to your advantage. 

2. Set your retirement goal.

Determine how much you’ll need to cover your daily expenses when you retire, then work towards saving that amount. Research shows it’s easier to achieve a goal when you have a clear target. Start by identifying how much it will cost you if you decide to retire today based on your current monthly outlay multiplied by your expected length of retirement. Don’t forget to factor in the cost of inflation, which, according to experts, is anywhere between 3% to under 5% based on the past five years.      

3. Track your expenses. 

Watch closely where your money goes each month. Identify which expenses are necessary (needs) and which are not (wants). Control the latter and funnel as much of it into your retirement fund instead. Tracking can also help you find spending patterns that you can work around to make sure you leave enough to add to your savings on a regular basis. Some months incur more expenses than others, for various reasons. Find out what these reasons are so you can adjust your budget accordingly.

4. Explore investment opportunities.

Saving is no doubt a great first step towards securing your financial future. But it’s investing that’s going to take you places. It can grow your money exponentially over a period of time (albeit with certain risks involved), and protects its value by beating inflation. AXA offers a portfolio of products that do just that: Savings eXentials is a time-bound investment plan that lets you pay as low as P1,500 a month, for just five years, for guaranteed returns paid out in cash on the 15th or 20th year. aXelerator, meanwhile, gives you access to professionally-managed, high-performing funds so you can maximize your money’s growth potential.

5. Get protected.

Get insured so you can live with ease knowing your loved ones are covered no matter what happens. AXA’s Retire Smart is a regular-pay life insurance plan that allocates a portion of your premium to funds designed to grow your retirement fund while guaranteeing a lump sum cash benefit, which will be granted to your family in case of your untimely demise. You can also opt to get supplementary coverage for emergencies and critical health conditions. Life basiX offers the same guaranteed protection for your loved ones, plus access to professionally-managed, high-performing funds, with the flexibility to double the amount of your investments to increase your earning potential.

If you need more help on how to jumpstart your financial game plan, visit https://www.axa.com.ph/efna to get a free online financial needs analysis with Coach Finn.