Most Pinoys make retirement plans too late – survey

Many Filipino investors may be devoting insufficient time in planning and saving for their retirement, according to Manulife Asset Management.

 

A survey conducted for the Manulife Investor Sentiment Index found that 82 percent of Filipino investors start planning for their retirement at ages between 51 and 60.

 

But about 26 percent of these investors started making plans in their 40s. The average age when Filipinos start their retirement planning is 35.5 years. 

 

Among the Filipino investors who have yet to start planning, the average age when they intend to begin thinking about their retirement is 41 years. 

 

The study revealed that 97 percent of respondents make mandatory contributions and 64 percent making additional voluntary contributions.  

 

“Many Filipino investors recognize the need to supplement their mandatory pension plans to maintain their current standard of living in retirement,” Manulife Philippines Chief Investment Officer Aira Gaspar said. 

 

The asset management arm of Manulife Financial Corp. recommends that Filipino investors make regular contributions to a portfolio of investments diversified across asset classes. 

 

"This approach could reduce the risk of outliving one’s retirement income by maximizing returns potential within one’s risk tolerance levels,” Gaspar said. – Keith Richard  Mariano/VS/JST, GMA News