Assuming I'll retire today, how much do I really need to live until 80 years old?
I thought of this because recently, I got to talk to some of my clients about retirement planning. Iba-iba sila ng sagot because we have different lifestyles based on what we are doing today.
But for the sake of what we commonly do as a human being, we'll compute our retirement fund based on FOOD!
I usually eat at a karinderia if it's possible. Para mas tipid!
So let's use the price of the karinderia that I used to go to for easier computation!
P60 - Meat
P35 - Vegetable
P15 - Rice
P20 to P25 - Drinks
Based here, if I want a decent balanced meal na hindi naman tinipid ang sarili, I need a total of P100, wala pang drinks.
So let's say P100 for 3 meals that's P300 total.
Sa isang taon, I need
P300 x 365 days = P109,500 in one year.
Assuming na retiring age na ko today, 60 yo na ko, and I live up to 80 yo, excluding inflation
P109,500 x 20 years = P2,190,000
Assuming libre ang tubig, kuryente, akin na yung bahay na tinitirhan ko (but not paying for real property tax hahaha), and wala na kong gagawin na iba sa life nyan.
Pero if I want to increase my lifestyle when I retire, magdagdag pa ko ng budget.
Leisure / Hobbies: P50,000 per year x 20 years = P1,000,000
Wifi: P1,500 per month x 12 = P18,000 per year x 20 years = P360,000
Not yet including medicines, check ups, and other health related expenses I need a total of
Food - P2,190,000
Leisure = P1,000,000
Wifi = P360,000
Total: P3,550,000
Take note, excluding yearly inflation pa ito.
If I won't be earning by 60 yo, I need to save P3,550,000 starting today assuming wala ding pension na aasahan.
I know malayo pa retirement, mahaba pa panahon. But P3,550,000 today would be worth 3 or 4x more the time when I retire!
Grabe no? How can we survive our longest holiday nyan...
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Hi! I'm Reuel and I help Life Engineers have clarity with their inspiring financial goals through my AAA Financial Blueprint. Talking about Retirement can be worrisome but with proper planning, we can create bite-size ways to make your financial goals happen. Let's schedule a discovery call here!
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