My friend is 60 years old, working in a company engaged in A/C maintenance and other building maintenance works. Since the owner is his friend and a 'brother' in a religious organization, he gave his best self to help in other jobs like driving and sometimes bookkeeping.
Since his first year 5 years ago, has not gone to the home country yet, and no annual leave taken, nor annual leave pay if on local leave. His contract will expire early next year, 3rd of 2-year labor contracts.Tough times, so in addition to understanding the boss, his thought was to save all so he can have big take-home pay upon exit. But with the new end-of-service gratuity law, he can only take end-of-service benefits equivalent to two (2) years' basic earnings.
Anxiety attacks hit him. He has two daughters, both with family of their own, but even until these days, they ask help from him not regularly though, but somehow this affects his lifestyle as it means sacrifices in other things. At certain times, they sent him voices of grandchildren asking for allowances, or what they wanted as birthday gifts, or utility bills not yet so they could not use the laptop for online schooling. Then the reminder for the materials for his house which was for gradual renovation was also hammered by his elder daughter to his tired mind. And others.
His false teeth must be fixed as he could not chew foods properly, causing gum pains. Estimated costs for that would be AED2K, and he could not afford that by now.
Body pains caused him some mood swings. He could not have a complete rest, even if he is on day off, because it is his laundry day, and day for the church where he is an active member of the choir, and a driver to safely fetch and drop off some of their members from and to their places.
He is planning to retire at 60 years old, but what will he do in the Philippines? Many who have gone home are complaining of high costs of living, and they cannot find a job because of age there, and no money to invest in a small business.
In the United Arab Emirates (UAE), the retirement age for expatriate residents is 60 years old, but they can work until the age of 65 years old if the employers can secure the required permits via MoHRE (Ministry of Human Resources and Emiratization).
As an ordinary worker looking to his future, there is a need for a continuous evaluation and planning to ensure he is able to to support himself in retirement. He has no investment whatsoever as his earnings went to basic needs -- month in, month out. He experienced also some of life's hard hits -- periods of unemployment, illnesses and deaths in the family, business losses, etc.
He is not ready for retirement. Not yet. UAE or home country? In the UAE, he can get rehired until the age of 65, as earlier mentioned, with tax-free salaries and better medical insurance and healthcare facilities.
He must give serious thoughts to self-reinvention. According to Walt Mossberg,
I see retirement as just another of these reinventions, another chance to do new things and be a new version of myself.
Very true. As long as our minds and bodies can do good things for value, find key areas for improvement to be a better version of self. This is called reinvention, doing new things and adding value to self.
As people grow old they feel useless particularly after retirement. Most of us have the need to be needed. We want to live a dignified life even after retirement. We want to spend our own earnings for our survival. If possible not to depend much on our children, as they have lives and needs of their own. We do not want to be a burden to them. If they help us in our grey-hair days, that is an extra blessing.
In Singapore, the minimum retirement age is 63 (click here). By 2030, Singapore's retirement and re-employment ages will be progressively raised to 65 and 70, as shown on MyCareersFuture online. Accordingly, this is to 'support older Singaporeans who wish to continue working and also better prepare them for retirement".
For me this makes sense. This will help improve wellness of the retirees. Their brains will continue to work, and will help slow down declining of cognitive function. This will also generate more income, and therefore, this means increased spending that will help fuel economy. On the side, this breaks the cycle of full dependence on children or relatives.
In the UAE, there is such a scheme called "Retire in Dubai". An expat resident aged 55 and above can apply for a retirement visa renewable after 5 years. They must be physically fit and must have valid UAE health insurance. Eligibility parameters include
- must have worked for not less than 15 years inside or outside the UAE or be 55 years old or more at the time of retirement, and;
- must own a property/ies not less than AED1M, with financial savings of no less than AED1M or with monthly income of AED20K (AED15K/month in Dubai) and provide bank statement for the last six (6) months
Many 'golden' people still want to stay here even after 60's because of the peace and order situation, tax-free salaries, availability of foods and beverages at affordable prices, good governance and innovations.
By now I am just a few years away from 60 years old, and yes, I cannot help getting worried about my retirement. In my younger days, there was no financial literacy program, and even if there was, with one breadwinner for all, there would be nothing left for savings nor emergency fund. My family is not rich, and I worked hard to help them, just crossing the bridge every single day with what I got.
What is the adequate standard of living post-retirement?
Retirement gurus say we need 12 times our salary to maintain a decent living after retirement. What if the salary is low, or there is no stable salary at all? I think the estimate for a decent living in the future is not based on salary, but on rough computation of how much would be needed, considering the inflation rates on a year-after-year basis.
On top of this, the physical fitness must not be ignored because an illness means additional expenses and reduced or a total halt for productive activities.
I have been a widow for some years, and my children have lives of their own. With what I have gone through, I am in a very challenging crossroad of my life. My goal is to produce sufficient income to meet my survival needs and prepare for retirement, and help my family in whatever way I can.
Give me Your divine light and ease of way, my Lord, as I passionately magnetize opportunities towards my goal. May I attract our splendid Universe.
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Image credits: Pixabay | islandworks
Nice post.
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