Most people think about retirement only when they’re in their 40s or 50s. But if you want financial security in your later years, the best time to start preparing is now—no matter how young you are.
“Retirement planning is not about age—it’s about readiness,” says Randell Tiongson, a Registered Financial Planner. “The earlier you start, the easier and less stressful it will be.”
Here’s why starting early pays off—and what you can do today to secure your future.
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The Power of Time: Why Starting Early Matters
One of the biggest advantages of early retirement planning is compound growth. The longer your money stays invested, the bigger your potential returns.
Let’s say you start investing ₱5,000 per month at age 25 instead of waiting until 35. With an 8% annual return, you could end up with millions more by the time you retire.
The takeaway? Time is your greatest asset. Even small contributions made early can lead to big results later.
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Retirement is More Expensive Than You Think
Many people underestimate how much they’ll need for retirement. Inflation, medical costs, and lifestyle expenses can add up fast.
Tiongson warns, “Most Filipinos don’t realize that their expenses in retirement will likely be as high—or even higher—than they are today.”
To avoid struggling later, start saving now and adjust your retirement goal as needed.
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Relying on SSS or Pension? Think Again
If you’re counting on Social Security System (SSS) or GSIS pensions, you might be in for a shock. For most retirees, government benefits alone aren’t enough to cover all living expenses.
To bridge the gap, invest in retirement funds like PERA (Personal Equity and Retirement Account), stocks, mutual funds, or real estate. The goal is to create multiple income streams so you don’t depend solely on pensions.
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It’s Never “Too Late”—But It’s Always Harder
What if you’ve already hit your 40s or 50s and haven’t started saving? It’s not too late—but you’ll need to be more aggressive.
Increase your savings rate, cut unnecessary expenses, and consider working a few extra years if needed. The later you start, the more disciplined you have to be.
The Bottom Line
When it comes to retirement planning, earlier is always better. The longer your money has to grow, the less financial stress you’ll have in the future.
Start small, invest consistently, and build multiple income streams. Your future self will thank you.
This article includes quotes from an original piece by Randell Tiongson, published in the Philippine Daily Inquirer.
