The Millennial and Gen Z Guide to a Sweet Retirement

It may seem like a world away now, but it’s never too early to think about retirement, even for millennials and Gen Z-ers. No matter how young you are, planning for retirement is crucial to ensuring you get to live a carefree one. 

We’ve come up with a Gen Z and millennial retirement planning guide to help you out!

Retirement Planning for Millennials and Gen Z-ers 

1. Start early 

The common millennial retirement age is around 60, which for some millennials is still a ways away. While retirement may be far away from the minds of millennials and Gen Z-ers at the moment, it’s never too early to start planning for it.  Even if it's just a little bit each month, over time it will add up. By starting early you'll have plenty of time to accumulate savings. If you can manage to save just PHP 1,000 per month starting at age 25, you'll have over PHP 400,000 saved by the time you reach retirement age. That's a lot of money! So, if you haven't started saving yet, it's not too late. Just start small and gradually increase your monthly contribution. You'll be glad you did!

2. Contribute to your employer's retirement plan 

Another key step in the retirement planning process is to think about your retirement plan. If your employer offers a retirement plan, be sure to contribute as much as you can. This will help you build up your savings quickly. Employer-sponsored plans usually have matching contributions, which means your employer will contribute money to your account based on how much you save. This is a great way to boost your savings.

3. Keep your expenses low

One of the best ways for millennials and Gen Z-ers to save for retirement is to keep your expenses low. If you can live comfortably on less money, you'll have more money to save each month. There are a lot of ways to do this, such as cooking at home instead of eating out, driving a used car instead of a new one, and avoiding luxury items. By making some small changes in your spending habits, you can easily free up hundreds of pesos each month to put towards retirement.

4. Invest 

Finally, you need to invest. It’s not enough for you to put away your money in a savings account. If you want it to grow, you need to invest it. Investing isn’t easy, though. Especially if you are a novice. If you don’t know where to start when it comes to investing, you can choose to put your money in bancassurance instead. With bancassurance, you can grow your money with ease so you can build your retirement fund.

With bancassurance, an experienced wealth manager will invest your money in different investment vehicles like money market funds, select equities, or balanced funds. On top of being able to build a retirement fund, you also be able to protect your loved ones through its life insurance component.

Saving for retirement can seem like a daunting task, but with a little planning and discipline, it's definitely doable. By following the tips mentioned in this article, millennials and Gen Z-ers can save for a comfortable retirement without too much trouble. Get started today and you'll be on your way to a good future!

Need more help with your retirement planning? Talk to a Financial Advisor from InLife! InLife has been providing Filipinos with insurance in the Philippines for over 100 years. Contact us today to learn more about our products.