Filipinos and saving money for retirement

[bigdude 2]

I have a question for anyone who has lived in the Philippines. I am in my early 30s and all my life my parents, peers, coworkers and friends have urged me to start saving money as soon as possible for retirement. So shortly after getting my first job I started a 401K. In addition, I have other financial sources that I invest in. I know at some point I will no longer be working and need money in order to live (this is a fact). So I save some of my money. But Filipinos dont seem to embrace this same idea. My ex is a Filipina and her parents spent money as they made it (according to her) and then suddenly retired with no savings what-so-ever and expect other to support them. Is this common practice in the Philippines? I mean, do Filipinos just assume they will work forever so no savings is needed?

Edited December 13, 2010 by bigdude

[Atencio 43]

The numbers show that most Filipino's continue to work after they retire. Reasons include value in continuing to work, helping the family, plus the obvious financial reasons. My mother in-law at 72 still works on Saturdays teaching graduate students. She enjoys it but I don't know if she works because she needs the extra money.

[bigdude 2]

The numbers show that most Filipino's continue to work after they retire. Reasons include value in continuing to work, helping the family, plus the obvious financial reasons. My mother in-law at 72 still works on Saturdays teaching graduate students. She enjoys it but I don't know if she works because she needs the extra money.

Did your mother in-law save money throughout her career? How do you define "retire" in this statement?

Edited December 13, 2010 by bigdude

[griffin 7]

Minimum wage is based on the location and the occupation. The highest minimum wages are 325 Pesos/day (about $6 per day) in the capital city of Manila. The lowest minium wages are 178 Pesos a day (about $3.50) per day in provinces like Palawan.

The minimum wage in the USA varies from state to state, usually between $7 to $8 per hour, or about $60/day. about 10 times higher than the highest minimum wage in the Philippines.

the minimum wage in US territories tends to be lower, ie: $5.85/hr for Guam

Source(s):

http://www.nwpc.dole.gov.ph/pages/statis…

http://en.wikipedia.org/wiki/List_of_U.S….

P.S. I HOPE THAT THIS MAY SERVE AS THE GENERAL ANSWER.

Edited December 13, 2010 by griffin

[bigdude 2]

Minimum wage is based on the location and the occupation. The highest minimum wages are 325 Pesos/day (about $6 per day) in the capital city of Manila. The lowest minium wages are 178 Pesos a day (about $3.50) per day in provinces like Palawan.

The minimum wage in the USA varies from state to state, usually between $7 to $8 per hour, or about $60/day. about 10 times higher than the highest minimum wage in the Philippines.

the minimum wage in US territories tends to be lower, ie: $5.85/hr for Guam

Source(s):

http://www.nwpc.dole.gov.ph/pages/statis…

http://en.wikipedia.org/wiki/List_of_U.S…

That is an interesting fact but what does that have to do with anything? The cost of living in the Philippines is also about ten times lower.

[bigdude 2]

Minimum wage is based on the location and the occupation. The highest minimum wages are 325 Pesos/day (about $6 per day) in the capital city of Manila. The lowest minium wages are 178 Pesos a day (about $3.50) per day in provinces like Palawan.

The minimum wage in the USA varies from state to state, usually between $7 to $8 per hour, or about $60/day. about 10 times higher than the highest minimum wage in the Philippines.

the minimum wage in US territories tends to be lower, ie: $5.85/hr for Guam

Source(s):

http://www.nwpc.dole.gov.ph/pages/statis…

http://en.wikipedia.org/wiki/List_of_U.S….

P.S. I HOPE THAT THIS MAY SERVE AS THE GENERAL ANSWER.

Filipinos may be relatively poor when compared to Americans, I agree with that. But, I dont think too many of them are suffering from absolute poverty, where a lack of resources is life-threatening. If you make more than what it takes to pay for basic necessities, than you can save a small amount money from your earnings. This is simple mathematics. Considering the cost of living is so low there, you wouldn't need to save a whole lot.

Edited December 13, 2010 by bigdude

[Atencio 43]

Did your mother in-law save money throughout her career? How do you define "retire" in this statement?

Retire with pension or forced retirement by the employer. At least for teachers there is a mandatory retirement age from public school district. I doubt she saved much money during her lifetime.

[one...two...tree 2,762]

I think it can't be ignored the differences in domestic policies like Social Security and Medicare that we have in the U.S. vs. what is available for retirees in Philippines. That said, there are a lot of Americans who retire with little or no savings. If you give a homeless man a twenty dollar bill, do you think he's going to invest 20% of it? When people are accustomed to a meager existence, there is no tomorrow - only today. Saving for a tomorrow is a luxury for people who know with reasonable certainty there will in fact, be a tomorrow.

[bigdude 2]

I think it can't be ignored the differences in domestic policies like Social Security and Medicare that we have in the U.S. vs. what is available for retirees in Philippines. That said, there are a lot of Americans who retire with little or no savings. If you give a homeless man a twenty dollar bill, do you think he's going to invest 20% of it? When people are accustomed to a meager existence, there is no tomorrow - only today. Saving for a tomorrow is a luxury for people who know with reasonable certainty there will in fact, be a tomorrow.

I don't agree. I don't know any Americans who retired with little or no savings. This phenomena must be limited to your small social group.

And as I stated in a previous post, I was not questioning why people suffering from absolute poverty (the homeless man in your example) don't save their money.

[Kevin-n-Merlaine 14]

It's nearly impossible to find work after you hit about 30 years old where my wife is from - especially if you're female. Age discrimination is huge there! Her parents aren't able to get a job so if they don't have their own business then there is no work. They have to rely on their kids to work and help support everyone. There really isn't any "retirement" option from the very beginning. I'm sure you're answers are going to be spread from case to case just like any other country would be.

[George & Gina 29]

I don't agree. I don't know any Americans who retired with little or no savings. This phenomena must be limited to your small social group.

And as I stated in a previous post, I was not questioning why people suffering from absolute poverty (the homeless man in your example) don't save their money.

Don't know any poor folks, huh?

[bigdude 2]

It's nearly impossible to find work after you hit about 30 years old where my wife is from - especially if you're female. Age discrimination is huge there! Her parents aren't able to get a job so if they don't have their own business then there is no work. They have to rely on their kids to work and help support everyone. There really isn't any "retirement" option from the very beginning. I'm sure you're answers are going to be spread from case to case just like any other country would be.

Very interesting. So they could not save money from ages 18 to 30? Let me take a guess, financial discrimination....you cannot open a savings account until you're 30 years old.

I guess you could also move if the region you live in discriminates. I love the excuses....

Don't know any poor folks, huh?

According to the US government I am "poor". So yes, I do.

[Tahoma 2,292]

I mean, do Filipinos just assume they will work forever so no savings is needed?

Yes...they all think the same thing...and I know it's true...because I asked every last one of them.

[Dan and Judy 614]

Filipinos may be relatively poor when compared to Americans, I agree with that. But, I don’t think too many of them are suffering from absolute poverty, where a lack of resources is life-threatening. If you make more than what it takes to pay for basic necessities, than you can save a small amount money from your earnings. This is simple mathematics. Considering the cost of living is so low there, you wouldn't need to save a whole lot.

I believe I saw a different post from you saying your ex was sending $1500 a month. thats an outrageous amount of money to be sending there. forgive me if I have confused you with someone else.

you simply can not imagine the poverty that is there. I believe the Majority live in poverty, not sure what your definition of absolute poverty is. Yes there are some rich and some middle class but I believe the majority are certainly living below our poverty level.

My fiancee is working in a factory working 10 hours a day 6 days a week and earning 200 pesos a day. She believes it is an (illegal) company since they pay less than minimum wage. She used to have a job making 350 pesos a day but they went out of business.

I think you mentioned college graduates in your post, there are probably as many unemployed college graduates as there are employed college graduates. the jobs are just not there.

which is why Filippinos jump at the chance to get jobs in other countries

back to the poverty.

Imagine just letting your teeth rot out because you can't afford to go the dentist.

Imagine killing a cat and eating it because you have nothing else to eat.

Imagine having a goiter on your neck the size of a grape fruit and doing nothing

about it because you have no money for the doctor.

Imagine having a pre mature baby in a public hospital where all the incubators are already in use.

you walk into an evergency room here and have a pre-mature baby whose life is hanging in the balance

they will send a helicopter to pick it up and take it to the neo natal unit, even if you dont have insurance.

that dosnt happen in the philippines.

Imagine having 8 kids because you can't afford birth control.

imagine having a pig pen 2 feet from your front door but you have to keep the door open because of the styfling heat.

imagine having a rat fall into your lap from the cieling (I had that pleasure in Oct.)

You and I are pathetically spoiled americans.

Imagine earning $4 a day and having to pay rent, buy drinking water and then eating with what you have left over.

Poverty is Ugly and Poverty is one thing the Philippinos have plenty of.

Expecting someone who doesnt have enough food to eat to be saving up for retirement is expecting a lot.

Go ahead and do an experiment, try to live for a month on $4 a day. go ahead and pay your real rent with outside money

but deduct $1 from your 4. so you've paid your rent and you're left with $3 a day, No showers or hot water. go outside

and fill a bucket up with the garden hose, go stand in your bath tub with the bucket of cold water and wash yourself.

Every time you buy some food. divide it into 3rds and throw out 2/3. we're going to pretend you've got two kids to feed.

before you start pick out the two outfits you are going to wear for the next month. You will be washing them by hand.

dont forget to deduct the cost of soap from you $3 a day. Did I foget to mention you can't flush your toilet..

fill up that bucket with the garden hose dump that bucket in the toilet after you've done your business. Do you want to use

shampoo? deduct it from your $3 a day. If you get sick you can't go to the doctor unless you already saved $15.

you have no refrigerator so don't be buying perishable food and sticking it in the refrigerator. Do you want to cook on the

stove. that's going to cost $20 for propane. deduct it from the $3 a day. Also forget about the microwave and icecubes

you dont have them. Got a cold? can you aford pills for a runny nose. probably not. can you afford tissue papers, probably not

How about paper and pencils for your kids to take to school. one more thing you only get that original $4 6 times a week cause

you get one day off of work

no they can't save money the way we can

Other than that ; my point is their lower cost of living comes from a lower standard of living. If I had a girlfriend here in the states

and she was sending $1500 a month to PI, I would run. Their needs are legitimate but you can't save the whole world.

Dan

[Dan and Judy 614]

Sorry, forgot about toilet paper. You can't afford it so dip a cup into that bucket of cold water, pour some in your hand and reach around and wipe. be sure to wash your hands real good afterwards.