The traditional image of retirement—sending kids off to college, then enjoying a stress-free life of travel and hobbies—doesn’t always apply anymore. With more Filipinos marrying later, many parents are entering their 40s just as they’re having their first child.
According to John Hero Salvaro, a Registered Financial Planner (RFP), this changes the retirement equation. In an interview with Financial Adviser PH, he explained:
“Parents who start families late face two major responsibilities at the same time: preparing for their own retirement and funding their child’s education. That overlap means retirement planning has to look very different.”
Here’s how Salvaro says later parenthood reshapes retirement strategies.
Retirement Timelines Get Pushed Back
Parents in their late 30s or 40s may not be able to stick to the usual retirement age of 60.
“One way to manage the overlap is by postponing retirement by a few years,” Salvaro said. “This extends income streams and helps cover both daily expenses and long-term goals like education.”
He added that staying employed longer also maintains valuable perks, such as extended HMO coverage that many companies now provide up to age 65.
Lifestyle Goals Must Be Recalibrated
For those who don’t want to delay retirement, redefining expectations becomes essential.
“When planning for retirement, you need to review projected expenses—food, housing, medical care, and leisure,” Salvaro explained. “Adjusting lifestyle choices can free up funds for education without completely sacrificing retirement.”
He cites gardening as an example. “It’s a low-cost activity that improves health, cuts grocery bills, and can even generate income if you sell surplus produce,” he said.
Education Funds Require More Conservative Investments
Parents starting late often think they can afford to invest aggressively in education funds since college is 18 years away. Salvaro cautions against this.
“By the time your child enters college, you’ll be close to retirement. A market downturn at that point could force you to dip into retirement savings,” he said.
Instead, he recommends balanced funds or moderately aggressive investments. “These offer growth potential while protecting against market risks that can derail both education and retirement goals,” he explained.
Insurance Becomes Non-Negotiable
Salvaro emphasized that insurance coverage plays an even greater role for late-start parents.
“Either untimely death or major illness can devastate both retirement and education funds,” he said. “Adequate life and health insurance ensure that your plans remain intact no matter what happens.”
Integration Is Key
Ultimately, retirement planning for late parents cannot be done in isolation.
“You can’t plan for retirement and education separately,” Salvaro told Financial Adviser PH. “They’re interconnected, and every peso spent or invested affects both goals.”
He strongly encourages working with a financial planner to tailor strategies for each household’s unique situation. “Late parenthood is more complex financially, but it can be managed with an integrated plan,” he said.
Final Takeaway
For Salvaro, the lesson is clear: later parenthood reshapes the rules of retirement.
“It’s about balance. Adjust your retirement age, redefine your lifestyle, invest conservatively for education, and secure insurance. With a solid plan, you can still retire comfortably while sending your child to school,” he said.
Retirement may look different for late-start parents, but with careful planning, it can still be both secure and fulfilling.
