Different people have different visions of retirement.
Some dream of peaceful mornings by the beach, others want to travel the world, and some simply want quiet days with family — free from financial stress.
That’s why there’s no one-size-fits-all number.
Your ideal retirement fund depends on your lifestyle, comfort level, and the kind of freedom you want.
But let’s make it simple and break it down step by step.
🪙 Step 1: Know your monthly requirement
First, ask yourself — if you were to retire today,
how much would you need per month to live comfortably?
For instance, let’s use two examples:
- ₱50,000 per month
- ₱100,000 per month
🧾 Step 2: Convert that to your yearly need
Next, multiply your monthly requirement by 12.
This gives you a clearer picture of what you’d actually need per year.
- ₱50,000 × 12 months = ₱600,000 per year
- ₱100,000 × 12 months = ₱1,200,000 per year
đź“Š Step 3: Divide by a realistic payout rate
Now, here’s where it gets interesting.
Most banks and financial institutions can project or guarantee around 4% to 5% yearly payouts.
In other words, your funds can generate that income every year without touching your principal.
So, to know your ideal retirement fund, simply divide your yearly need by the payout rate:
| Monthly Need | Yearly Need | 4% Payout (Ă·0.04) | 5% Payout (Ă·0.05) |
|---|---|---|---|
| ₱50,000 | ₱600,000 | ₱15,000,000 | ₱12,000,000 |
| ₱100,000 | ₱1,200,000 | ₱30,000,000 | ₱24,000,000 |
🎯 Your “Number” is Your Starting Point
From this, you’ll see that:
- To sustain ₱50K/month in retirement, aim for ₱12M–₱15M.
- To sustain ₱100K/month, aim for ₱24M–₱30M.
So rather than guessing, you now have a specific number to work toward.
It’s not about reaching it overnight — but knowing your goal early helps you plan, invest, and stay consistent.
đź’ˇ The Takeaway
Ultimately, retirement isn’t about age — it’s about cash flow without working.
And the truth is, the earlier you start planning, the sooner you can live life on your own terms.
If you’d like to compute your own retirement number or design a plan that fits your lifestyle, send me a message. I’ll help you build your roadmap — step by step. đź§
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