The current retirement age in the Philippines, according to the Labor Code, is 60. However, a new law passed last year states that retirement should not be mandatory. You can choose to continue working even after you turn 60.

But would you really want to work for the rest of your life? At a certain age, wouldn’t you want to enjoy the fruits of your labor—traveling the world or retiring in a bright and airy bungalow by the beach?  Of course you do! “How can I afford to enjoy myself when I am no longer expecting a paycheck every month?” you ask? 

Here are five of the best retirement fund methods you can use to prepare for that comfortable life after 60, or earlier!

1. Pension Plans

Pension plans provide you with monthly allowances or a whole lump sum amounting to your total contributions.

One of the most accessible pension plans in the Philippines is facilitated by the Social Security System (SSS). This is considered as one of the easiest ways to invest since SSS contributions are mandated by law, and are automatically deducted from your salary.

Other institutions like banks and insurance companies also offer a variety of pension plans.

2. PERA 

The Personal Equity Retirement Account (PERA) has been fully implemented by law in 2016. According to financial analysts, this is the Filipino counterpart of the 401k Contribution Plan or the Individual Retirement Account (IRA) in the United States. 

PERA is a type of retirement investment plan that can only be availed through banks, insurance companies, or any other administrator accredited by the Bangko Sentral ng Pilipinas (BSP), the Insurance Commission, and the Securities and Exchange Commission. PERA is a voluntary retirement contribution plan that gives you the freedom to save and invest up to PhP100,000 annually. Also, the returns are completely tax-free. 

3. Insurance Plans

Another way to invest for your retirement is through insurance plans, wherein contributions lead to compensations.

Aside from the financial protection it can provide your family after your death, insurance plans can serve as your income source upon retirement. Insurance companies have devised a variety of plans, some including critical illness coverage (See Set For Health plan), to suit your every need. Some of them, like FWD Insurance, have even devised a way to translate your contributions into investments (See Set For Life and All Set plans), by letting you choose financial funds that will help you make your money grow.

4. Financial Funds 

Banks, insurance companies, and other institutions offer a variety of funds already invested in a diverse set of industries. Bonds, stocks, and other investments can be quite complicated. These institutions manage your money for you and enable you to participate in these kinds of investments, without giving you any stress. Some insurance companies, like FWD, even offer funds with returns in US dollars (See FWD Fund Valuation) for more profit. 

5. Real Estate

Owning a home or any property by the time you turn 50 or 60 is one of the main goals of Filipinos, and for good reason. It’s an investment that makes sense, especially if you can no longer rely on a monthly income for rent. The value of your house or condominium unit appreciates as the years go by, especially if you have chosen a good location. In addition, owning property that can eventually be rented out can give you a source of income once you have retired.


Investments are always risky. This is the reason why there is no silver bullet or magic wand in terms of finances. Analysts say that the key to long-term financial security is to invest in more than one plan or a combination of any of the best retirement savings plans. Contact your insurance agent or financial planner now to start planning for your retirement.