How to Plan for your Retirement as an OFW

Whether you are planning to retire outside the Philippines or you want to go back to the country when you resign, it’s best to have a plan for your retirement. Many OFWs go back to the Philippines to spend time with their families after they work abroad. You can do the same or have something different as you wish.

Also Read: Why You Need to Keep your Options Open when Working Abroad

If you don’t have any idea how you can plan your retirement, we will help you through this article. We have written here the best tips so you can make a plan while you are still working. You can make this your guide so you won’t get lost during the process.

how to retire filipino

Why planning for your retirement is important?

There are some people who don’t care about their retirement. For them, resigning from their jobs abroad and going home to their family in the country are all there is. However, having a plan on how to do it does not only help you but your family as well. If you are wondering the importance of planning for your retirement, here are some considerations.

  • You have a concrete list of what to do.

After your retirement, you will wonder what will you do for the next years of your life. Instead of wondering for the rest of your life, you will have a concrete list of what to do. This means that if you are planning to travel somewhere, retire in a particular place, take a long vacation, or start a business, you will know what and how exactly to do your plans since you will be able to take a look at the plan when you need it.

  • You will know how much to save.

Planning your retirement early will help you determine the amount you need to save. After your retirement, it’s either you get your money from your pension or from your retirement savings to support the next years of your life. Pensions are not usually enough for a sustainable life. This is why many retirees still continue to look for sources of income even after they retire. You can consider your pension when planning the amount you can save.

  • You can create major plans after your resignation.

Another reason why planning for your retirement is a good option is that you have the time to create major plans even before you retire. For example, if you want to establish your business after you retire, you can do your business plans as you plan for your retirement. If you are planning to travel, you can simultaneously plan your destinations.

  • You can evaluate your financial capability.

Finally, planning your retirement will help you evaluate whether you are ready to retire yet or not. For example, with the current savings you have, you will know if the amount can support you after you retire. If your evaluation says that you need more amount, you can plan your retirement later until you save enough for your retirement.

There are still other reasons why planning for your retirement is a good strategy. You might find your own reason as you make the plans. Planning for your retirement will make sure that you are ready to leave your work financially.

save money and plan for retirement
save money and plan for retirement

How to plan for your retirement

If you are an OFW, it’s important that you plan your retirement. You can’t be abroad forever, especially if you plan on returning home after you finish working outside the country. Your retirement plan will serve as your guide so you would know what to do next after you resign from your work. To effectively plan for it, here are some tips to follow.

1. Know exactly what you want to do after you resign.

Before anything else, think about what you want to do when you resign. If you are planning to travel, list down the destinations where you want to go and who you want to go with. If you are planning a business, think about what you want to start. Plan the business piece by piece including the products or services, capital, location, and target market. If you want to buy a retirement house, think about where you want it to be located. Whatever it is that you want to do, make sure that you are certain about it.

2. Open a retirement fund account.

Next, you should open a retirement fund account. Your pension won’t be enough if you have major plans when you retire. There are many ways to start saving up for your retirement. You can avail of insurance or open a savings account exclusively for your retirement. Insurance companies will allow you to pay premiums for about 10 years and when you retire, you will have something to rely on financially. The same goes for your savings. The difference between opening an insurance and savings account is that in insurance, your money is growing through investments while in a savings account, your money is just in a bank account.

3. Make your contributions until you achieve the amount you are targeting.

Once you have a retirement fund account, make your contributions regularly. Set an amount that you will need to pay each month. For example, if you decided to open a savings account, you can contribute as low as 500 every month. In this way, you have something to follow. This can also discipline you so that you won’t fail to do put something in your retirement savings account each month. If you choose to avail of insurance, you need to follow the fixed monthly premium. The lowest you can get is 1,500-2,000 a month.

4. Don’t withdraw your retirement fund until you actually decide to retire from work.

Lastly, you should not withdraw your retirement fund until the day you actually retire from work. This is part of disciplining yourself. Your retirement fund should stay in a savings or insurance account until you retire. Since this account is exclusively for your retirement, you should not use it for other purposes to have an effective retirement plan.

plan for your retirement as an overseas filipino worker
Plan for your future. Remember why you became an OFW in the first place.

Inspiring Katas ng OFW Stories

There are many overseas Filipino workers who have spent their money wisely and made sure to buy only for things that they can invest such as properties, business opportunities, etc.

Below are some stories you can read about so you can get inspired on where you can set aside your money for your future. We hope these stories will be helpful in giving you an idea to save and invest.

As you can see above, you can get creative with the ways you can earn and spend your money so be wise!


Planning for your retirement is not just important to you but also beneficial for the financial security of your family. If this is your first time planning for something big after you retire, the things we mentioned above will help you make a successful plan for your retirement.

Leave a Comment