When is the best time to retire?
In April 2001, I took the leap of faith to live the life I wanted after working for a multinational oil company for 22 years.
Fourteen years have passed after I made that leap and I have no regrets.
My retirement money has grown into blessings I never imagined.
It has provided well for my family, advocacies for God and country, passion for business mentoring and master’s and doctorate education. (I am currently working on my dissertation in Organizational Development.)
So when do you retire? Is it a function of age or money?
Most people think that retirement is a function of age. Others feel it is a function of the money that one has saved or accumulated as the retirement fund.
Did I retire because I reached the optional retirement age of 55? Did I retire because all my children finished college? No.
I retired early at the age of 43, even if I was being groomed for a vice president position in the company.
At that time, my sons were in grade school and high school.
Age issue
For ladies, age is a sensitive topic. But for men, the topic of age is amusing. As I have often said, age does not matter as long as my matter does not age.
Age is all about mind and matter. If you can’t remember what’s on your mind, then it doesn’t matter.
In the Philippines, professionals are expected to retire in their 60s. With the life expectancy of 77 to 79 years, what will you do with 17 or 19 years of retirement life?
Even with all the company despedida, family trips, farm scouting, checking on old friends or college buddies and finding the right investment instrument with your premier bank officer, what else is there to do?
Every day, you still wake up early. You walk the dog and eat breakfast. Then, you watch the news, variety shows and soap operas on television.
After that, you eat lunch and go through whatever is on TV and take a nap while watching. Later on, you watch the early evening news, eat dinner, take a walk with the wife and finally go to sleep. You wake up the next morning and repeat everything.
I tried this for two days and I went crazy.
Is there an ideal age for retirement?
The optimistic retired too early that he outlived his money.
The pessimistic retired too late that his deteriorating health prevented him from enjoying his retirement.
I’ve seen and known many retirees. I’m also the president of our company’s retiree club. Within 10 to 15 years after retirement, a retiree suffers from financial, relational or physical and mental health issues.
The biggest mental suffering a retiree goes through (other than dementia) is the loss of self-esteem.
The provider of the family suddenly no longer has his “prime” role.
I know a retiree who wakes up every morning and puts on his clothes to take a walk around the subdivision.
One day, he found himself in a cab ride to his Makati office. It has been his routine for the past 25 years. Realizing this mistake, he returned home where his wife then asked, “Ed, why are you wearing your office barong?”
Another retiree wanted to be busy in the house by rearranging the couch, cabinet, paintings on the wall and even the angle of the TV screen.
He got the ire of the wife, who said he had no right to fix her “office” for the past 30 years.
As a retiree, there’s a need for you to wake up every morning, energized to do something meaningful.
Remember, you’re retired not expired.
RECIPE for a happy retiree
R – Relationship with family and friends
E – Exercise for a long and good life
C – Connection with God and His universe
I – Intellectual ability and lifelong learning
P – Purpose-driven mission
E – Expression of love and LIFE (Living In Faith Every day)
To be a happy retiree, you need to live, laugh and love.
Money issue
There are many professionals who are scared to retire because of what they will lose, most especially peso and power.
As senior managers, we lead meetings and decide on company strategic plans and performances. In the end, we are rewarded for our position and performance.
In retirement, there are no more bonuses, just one big lump sum when we leave the company.
The other scary part about retirement is the possibility of a drastic lifestyle change because there will no longer be a regular cash flow.
Perks used and enjoyed by the family -like the use of the company car with company driver as the school bus, leisure or social club as the venue for family recreation, corporate fly miles as a means for traveling abroad with the spouse on business class- are suddenly shouldered by your own account.
I’ve never seen anyone plan to fail in retirement, but I’ve seen many who fail to plan for their retirement.
Most people often become confident that the company fund plus the social security pension will be more than enough.
Simple guide
Here’s a simple guide on how to plan for your financial goals.
Foundation years (mid-20s to mid-30s)
– Many years of earning power ahead
– Plan to start a family and maybe buy a condo
– Aim for long term financial goals
Acquisition years (mid-30s to mid-40s)
– Income still climbing
– Establish tertiary education for children
– Still aim for long term financial goals
Accumulation years (mid-40s to mid-50s)
– Family responsibility is winding down
– Begin to think retirement
– View investment with emphasis on income/capital preservation
Reward years (mid-50 to 70s)
– Retired or about to retire
– Active income years are over
– Put together trust funds for children/grandchildren
– Aim for investment with senior medical care or monthly pension
As I live through the best times of my retirement, I’ve learned that it is just like a race.
Challenge the track with the best of your God-given abilities. It is not about winning or losing, but rather learning from life’s track of curves, bumps and eventually checkered flags.
As you build your nest egg in retirement, make sure that you crack the eggs.
Turn it into your favorite omelet then enjoy with family and friends.
(The author is dean of the Entrepreneurship Circle of Bo Sanchez’s Truly Rich Club and a lead advocate of the Philippine Center for Entrepreneurship Foundation Inc. – Go Negosyo. He is also an adjunct faculty on Entrepreneurship at the Asian institute of Management. For happy retiree and entrepreneurship seminar-workshops, call 0916-6725070 or email [email protected].)
