Retirement Planning Steps for Filipino Expats in Singapore

Recently, I returned to the Philippines to attend a conference. And traveling back reminded me of how I moved to Singapore when I was younger and have been living here with my family for years now.

As we work hard abroad to secure a future for ourselves and our families, one important thing we Filipino expats must do is to have a clear plan for our retirement years, especially that the costs of living, healthcare, and other needs continue to rise.

Having a solid retirement plan can give you peace of mind and financial independence. With that, here are five important steps to consider as you plan your retirement.

1. Start Saving Early

The sooner you begin saving, the more time your money has to grow. Even if retirement may seem distant, starting early gives your investments time to increase in value.

This allows even small amounts to grow significantly and reduces the need to contribute larger amounts later in life, taking some pressure off your finances.

Whether you set up a dedicated retirement fund or invest in retirement accounts, make it a habit to save regularly and increase your contributions as your income grows.

Remember that the best time to start is always now. Even small amounts will give you a head start toward building your retirement fund.

2. Invest Your Money (in Retirement Accounts)

Beyond saving, investing your money is a great step in growing your retirement fund.

Here in Singapore, Filipino expats can consider contributing to voluntary Central Provident Fund (CPF) schemes or opening an Supplementary Retirement Scheme (SRS) to enjoy tax benefits and opportunities to grow their savings.

If you’re not here in Singapore, look for an equivalent of these options in the country where you’re residing. And before investing, ensure that you understand the terms and choose an investment that aligns with your retirement timeline and goals.

3. Diversify Your Investments

Reduce risk by diversifying your investments across different asset classes instead of relying on one type of investment. You can spread your funds across stocks, bonds, and mutual funds for example.

Diversification can protect your funds from fluctuations in the market and reduce the impact of any investment’s poor performance. This will help provide stability and potential growth even in different market conditions.

Aim for a balanced portfolio that suits your risk tolerance, requirement, and capacity.

4. Think About Healthcare Costs

Healthcare expenses are often overlooked in retirement planning, yet they can significantly impact your finances, especially if you plan to retire in the Philippines.

As many retirees face higher healthcare costs due to age-related medical concerns, setting aside funds for this is crucial. So consider getting health insurance to cover significant medical expenses. And create an emergency fund for unexpected health-related costs.

Including your healthcare in your planning means you can focus on enjoying your retirement years without the worry of sudden medical bills.

5. Consult a Financial Advisor

From estimating your retirement needs to selecting the right investment options, retirement planning involves a lot of decision-making. Working with a financial advisor can help you navigate these decisions and create a plan tailored to your unique situation and goals.

Professional guidance can keep you on track with the adjustments needed to your plan as your income and goals evolve. So seek out a financial advisor who understands your needs, and you’ll be better equipped and have the peace of mind knowing that your retirement goals are planned and managed effectively.

Remember that retirement planning requires commitment. And it’s one of the most important financial decisions you’ll make for yourself and your family.

Your retirement plan should adapt to changes in your lifestyle, financial goals, and family needs. Stay proactive and review it regularly to stay on track and make informed decisions as needed.

The goal is to create a secure and enjoyable retirement that allows you to live comfortably and pursue your dreams. And building a future like that is within reach if you take the time to plan, adjust, and stay consistent. Your future self will thank you for the efforts you put in today.

P.S. On the off chance that you still don't have a holistic financial planner and advisor to help you with your retirement planning, then I'd like to try out for the role! (I openly say this because even if I have two decades of experience in financial advisory, I know that trust always takes time to build.)

You can schedule a consultation with me here and let’s maximize your wealth potential!