“Just start small” is a common piece of financial advice. Many believe that setting aside any amount—no matter how little—is good enough to build a solid retirement fund. While getting started is important, Rienzie Biolena, a Registered Financial Planner, told Financial Adviser PH that this mindset can be misleading and even harmful.
“I have seen financial advice saying that it is okay to start investing with just P1,000 per month for retirement. But what if the person actually needs to invest P5,000 per month? Is this then good and sound financial advice? No. This is like a doctor issuing an under-dosed medication—and saying that it is alright because ‘what is important is that you start,’” Biolena explains.
Why “Starting Small” Can Be a Trap
Starting small only works if you increase contributions over time. The problem is, many people get comfortable contributing a minimal amount and assume they’re on track. But if you’re not saving enough, you’re essentially underfunding your future.
Imagine needing P10 million for retirement, but only saving P1,000 per month. Even with compounding, that number likely won’t be enough. Without real calculations, you risk running out of money when you need it most.
Retirement Planning Requires Real Math
Instead of blindly following the “start small” mantra, Biolena emphasizes the importance of proper financial calculations.
“Financial advice, like medical advice, should be as accurate as possible, giving the right instrument at the right amount,” he says.
This means:
Determining your actual retirement goal based on lifestyle, inflation, and years in retirement.
Using realistic projections for savings growth, investment returns, and expenses.
Adjusting your contributions accordingly so you don’t fall short.
The Bottom Line
Starting is important—but starting small without a plan can set you up for failure. Retirement planning isn’t about vague encouragement; it’s about real numbers, realistic goals, and disciplined saving. Instead of guessing, take the time to calculate what you actually need—and work toward it consistently.
