A mother’s mantra: Build a financially secure future

MANILA, Philippines — What kind of life do you see for yourself when you hit 60? Do you dream of traveling the world? Are you seeking financial security, free from the burden of debt?

For some of us, we often see retirement as a distant reality, but it is never too early to think about retirement, even if you are a student, a young professional, or just starting your career. Securing a comfortable future requires preparation because financial stability in retirement does not happen by chance — it is the result of early planning and smart decision-making.

While it may seem premature to think about life after 60 — referred to as retirement — when one is focused on building a career or managing daily expenses, starting early allows us to make informed choices for a stress-free and fulfilling retirement.

Financial realities of retirement

Retirement brings significant lifestyle and financial changes. While stepping away from work offers newfound freedom, it also means losing a steady source of income. As a result, retirees must rely on savings, pensions, and investments to cover their daily expenses and long-term needs. While it is easy to assume that financial obligations ease upon retirement, the reality is different. Health care costs rise, inflation affects purchasing power and unexpected expenses can put a strain on finances.

The 2018 Longitudinal Study of Ageing and Health in the Philippines (LSAHP) highlights the financial struggles of older Filipinos, many of whom face low income and limited financial resources. A significant portion has no savings and nearly half grew up in poverty, making retirement planning difficult. About 43 percent struggle with household expenses, with 14 percent experiencing considerable difficulty.

Family, especially children, is a primary source of financial support, cited by 58 percent of seniors. While 42 percent receive pensions, only 20 percent consider them their main income due to low payouts. Additionally, 34 percent of seniors, even those aged 80+, continue working in informal sectors, indicating a reliance on labor for survival rather than financial security. These findings suggest that there is a need for Filipinos to learn how to become more prepared for retirement.

Understanding key government policies for retirement

While there are existing financial mechanisms to aid retirees, such as pensions from the Government Service Insurance System, the Social Security System and even employer-sponsored retirement plans, it is still important to take proactive steps in augmenting our retirement funds.

Recognizing this need, the government has taken significant steps to help citizens secure their financial future, particularly in retirement.

One such initiative is the Personal Equity and Retirement Account (PERA), spearheaded by the Bangko Sentral ng Pilipinas (BSP).

Created through Republic Act 9505, PERA serves as a voluntary retirement savings program designed to supplement existing pension plans. It offers individuals the opportunity to grow their savings by investing in mutual funds, unit investment trust funds, stocks, bonds and insurance pension products. A major advantage of PERA is its tax-exempt contributions and income tax-free earnings, making it an attractive option for long-term financial security.

To further enhance accessibility, the BSP introduced Digital PERA in 2020, enabling individuals to open and manage their accounts online. This digital innovation removes traditional barriers to participation, encouraging more Filipinos to take control of their retirement planning.

The power of investing

There are also other investment products offered by various financial institutions to prepare for retirement. One such option is the BPI Wealth Builder, a low-cost, accessible investment solution that helps individuals grow their wealth systematically and prepare for a stable future, while giving free benefits on top of investment returns.

BPI Wealth Builder allows clients to start their investment journey with a minimum deposit of just Php 1,000, making it highly accessible for those new to investing. Through its online platform, e-Invest, individuals can open an account, track their money’s growth and monitor benefits seamlessly through the BPI app. Upon opening the investment account, benefits are unlocked ­— free points for free items, up to cancer coverage.

More than investments, BPI Wealth Builder ensures that financial security comes with essential health care benefits, making it ideal for retirees. As investments grow, clients can gain access to free video consultations through KonsultaMD, providing medical advice at their fingertips. Loved ones can also be enrolled under the Family Health Plan to extend this benefit. Additionally, clients can conveniently access electronic prescriptions, referrals and medical certificates, streamlining their health care experience.

To encourage consistent savings, clients can automate monthly top-ups starting at only P100, ensuring a disciplined approach to building long-term wealth. Upon reaching age 65, retirees can begin automated partial withdrawals, providing a steady income stream to support retirement expenses while keeping the remaining funds invested for continued growth.

Given the rising health care costs, BPI Wealth Builder serves as both an investment tool and a financial safety net, ensuring retirees are protected while steadily growing their funds for the future.

Facing the future

At every stage of life, we seek security not just for ourselves, but for the people we love most. As parents, we devote years to nurturing, guiding and supporting our children, ensuring they have everything they need to thrive. However, as we look toward the future, one of the greatest gifts we can give them is the freedom to live on their own terms — without the burden of having to support us financially in our retirement.

Securing our financial future means we would not have to rely on our children for stability. Instead, we can enjoy the fruits of our hard work, knowing they are free to pursue their own dreams without the weight of financial responsibility for us. As a mother, that is something I deeply want for my children: a future where they are empowered to build their own lives while knowing that I have taken the steps to ensure my own well-being.

I had to be disciplined to start saving early on as the family was starting. As my income grew, I looked for investments to widen my financial portfolio. It was deliberate to build a fund that will be used for my future needs.

Facing the future is not just about being ready for retirement, it is about protecting our independence and giving our loved ones the space to flourish. By investing wisely and making wise financial choices today, we can have peace of mind and allow our children to step into their own futures with confidence.

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Santamaria is the chief customer and marketing officer at BPI. She is also a Trustee of BPI Foundation.