Today, we will discuss our financial need as future retirees.
I am 33 years old and I plan to retire at age 65. Let's assume that I will live an other 20 years without income and without rental properties. I'll then need to fund my daily expenses with my savings.
How much do I need?
Let's say that me and my wife can live a simple life and we can normally live with 30,000 pesos a month.
In one year, we are going to need 360,000. In the span of 20 years, we will need 7,200,000!
Not only that, we must take inflation into account. Inflation in the Philippines in 2013 is around 3%.
In 32 years, at the age of my retirement, I will need 18 millions and a half to be able to live!
I hope this will make you realize that it is time to start preparing for the challenges that will come in our life.
With our help, you can already take the first steps.
Photo Credit: By Dori (Own work) [Public domain], via Wikimedia Commons
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