The Manulife Guide to Retirement Planning
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Transcript of The Manulife Guide to Retirement Planning
Protection . Wealth . Savings . Education . Health
THE MANULIFE GUIDE TO Retirement Planning
Protection . Wealth . Savings . Education . Health
where retirement is seen as an end to productive activities with individuals waiting in content in their rocking chairs.
Gone are the days
Protection . Wealth . Savings . Education . Health
plans?retirementWhat are your
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THE MANULIFE GUIDE TO Retirement Planning
Protection . Wealth . Savings . Education . Health
Ideally, retirement
should be...
And not...
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THE MANULIFE GUIDE TO Retirement Planning
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comfortably?retireDid you know that very few get to
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THE MANULIFE GUIDE TO Retirement Planning
Protection . Wealth . Savings . Education . Health
BANKACCOUNT
45%DEPENDENT ON RELATIVES
30%DEPENDENT ON CHARITY
22%STILL
WORKING
2%FINANCIALLY INDEPENDENT
Source: SSS survey
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THE MANULIFE GUIDE TO Retirement Planning
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today than 10 years ago?
livelongerDid you know that people
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THE MANULIFE GUIDE TO Retirement Planning
Protection . Wealth . Savings . Education . Health
71 years old
64 years old
75 years old
69 years old
20042014
SOURCE: www.census.gov.ph
Life expectancy 10 years ago
Life expectancytoday
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THE MANULIFE GUIDE TO Retirement Planning
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than you think.retirement yearslongerYou have
_Single _Married _Separated _WidowedCivil Status:
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THE MANULIFE GUIDE TO Retirement Planning
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Females have longer Life Expectancy
The wider the life expectancy gap, the longer a sole survivor will live in retirement.
Source: Manulife Asset Management Aging Asia research reports, June 2014.
to married male’s expected retirement duration
+7.1years
In the Philippines
when planning for retirement. should be considered by a married coupleJoint life expectancy
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THE MANULIFE GUIDE TO Retirement Planning
Protection . Wealth . Savings . Education . Health14231427Php 2,978?
Php 8,586?Php 30,000?
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THE MANULIFE GUIDE TO Retirement Planning
Protection . Wealth . Savings . Education . Health
Php 2,978Monthly Pension
Php 8,586Monthly Pension
Php 30,000Monthly Expenses
SOURCE: SSS CEO Emilio de Quiros Jr.’s statement made on April 2011
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THE MANULIFE GUIDE TO Retirement Planning
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500,000
750,000
900,000
when you retireto prepare forwhat you needHospitalizationexpense is part of
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THE MANULIFE GUIDE TO Retirement Planning
Protection . Wealth . Savings . Education . Health
Doctors’ Fees
Medicine Costs
Hospital Costs
Ages 0-50 51-70 71-76
28%
82%
Injuries & Illnessescheck-ups
Heart Conditions
Cancer
Diabetes 42,185 cases
55,999 cases
82,290 cases
Source: DOH Disease Case Statistics for 2012Source: National Statistics Office, National Demographic and Health Survey (2008)
Source: www.doh.gov.ph; Consumer Finance Survey 2012 Bangko Sentral ng Pilipinas (AHW 2004, CHD 2004, NIH 2005)
Source: National Statistics Office, National Demographic and Health Survey (2008)
Use of hospital services tends to increase with age especially in the last 5 years.
82% of those who go to hospitals are for confinements due to illness and injuries VS 28% are for routine medical checkups.
It costs at least Php 500,000 to undergo medical treatment for any 1 critical illness.
Top 3 Critical Illnesses in the Philippines
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THE MANULIFE GUIDE TO Retirement Planning
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in the future?will be worthwhat you set aside today
Do you know how much
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THE MANULIFE GUIDE TO Retirement Planning
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20133%
20124%
20114%
20104%
20094%
20084%
20074%
20066%
20053%
20046%
INFLATION http://www.nscb.gov.ph/secstat/d_price.asp
INFLATION RATES USEDSOURCE:MEALRICEGASMEALRICEGASGAS
200420042004201420142014
http://www.virtualtourist.com/travel/Asia/Philippines/Cit of Manila/Manila-1391614/Restaurants-Manila-Jollibee-BR-1.htmlhttp://dirp4.pids.gov.ph/ris/dps/pidsdps1227.pdfhttp://www.senate.gov.ph/publications/P1%202004-06%20-%20An%20Assessment%20of%20Petroleum%20Prices.pdfhttp://www.jollibee.com.ph/menu-price-list/http://oryza.com/news/rice-news/philippines-domestic-rice=prices-reach-record-high-january-march-2014http://www.doe.gov.ph/retail-pump-prices/retail-pump-prices-metro-manila
200420142024
PhP 17.45/kiloPhP 37.78/kiloPhP 56.14/kilo
PhP 25.23/literPhP 52.37/literPhP 77.82/liter
PhP 45.00PhP 99.00PhP 147.11
PROJECTED COSTS
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THE MANULIFE GUIDE TO Retirement Planning
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start today?Why should you
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THE MANULIFE GUIDE TO Retirement Planning
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Year 1 Year 2 Year 3 Year 4 Year 5
Time well spent means money well earned.The amazing thing about time is that it can make money grow. When you invest or save, through time, the interest will grow. So you end up with more money than you initially invested. So the sooner you invest, the sooner time can work its magic.
The Power of Time
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THE MANULIFE GUIDE TO Retirement Planning
Protection . Wealth . Savings . Education . Health
is possible.
Bridgingthe Gap
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THE MANULIFE GUIDE TO Retirement Planning
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CURRENT SAVINGS9. Current Retirement Provisionsa) Company Retirement Plan At retirement, how many years of service would you have? years Monthly Earnings: x = Number Yrs. of Service Retirement Plan Benefit
b) Other investments that you would want to use to fund your retirement:TTotal Current Retirement Provisions: (9a) + (9b)
10. RETIREMENT GAP (8) - (9):
OTHER PROTECTION11. If you were disabled and unable to work, would you like your retirement fund to continue growing? YES NO
12. Would you like a critical illness coverage to keep your retirement fund intact in the event of a dread disease? Yes No
HOW MUCH ARE YOU WILLING TO SET ASIDE FOR YOU TO START BUILDING YOUR RETIREMENT FUND? 13. Budget
YEARS BEFORE RETIREMENT1. At what age would you like to retire?
SAVINGS NEEDED AT RETIREMENT
2. What is your current age?
3. Number of years to retirement: (1) - (2)
8. Future Value of your Retirement Fund (7) x Future Value Factor (refer to Future Value factor flashcard):
6. Years to receive retirement income: 7. Total Retirement Fund (5) x (6):
4. If you were to retire today, what monthly income would be sufficient to meet your needs?
5. Desired Annual Retirement Income (4) x 12 months:
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availablethe best optionTake advantage of
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THE MANULIFE GUIDE TO Retirement Planning
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SAVINGS ACCOUNT
0.25% p.a.
TIME DEPOSIT
0.875% p.a.1
MANULIFEPESO GROWTH
FUND319.56% p.a.
MANULIFEPESO SECURE
FUND29.09% p.a.
Savings account and time deposit rates are gross of 20% withholding tax.1 1-year rate for peso time deposits of PhP 100,000 but less than Php 500,000 as of August 2014.22 Figure represents 5-yr annualized return of Manulife Peso Secure Fund as of August 2014 and is not guaranteed.3 Figure represents 5-yr annualized return of Manulife Peso Growth Fund as of August 2014 and is not guaranteed.
In Building Up A Retirement Fund?What Are Your Options
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THE MANULIFE GUIDE TO Retirement Planning
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delay?Why is it costly for you to
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THE MANULIFE GUIDE TO Retirement Planning
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0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Delay by 1 Yr. Delay by 2 Yrs. Delay by 3 Yrs. Delay by 4 Yrs. Delay by 5 Yrs.
PhP 250,203PhP 481,873
PhP 696,382
PhP 895,001PhP 1,078,908
PhP 100,000 investment for 10 years earning 8% interest annually; Figures represent the opportunity cost as of year 20.
procrastinationOpportunities lost due to
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FactorsVALUEFUTURE
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THE MANULIFE GUIDE TO Retirement Planning
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How to compute for the Future Value of your Retirement Fund:a) Get the information on Total Retirement fund from the priority choice.
b) Determine the inflation rate to be used.
c)c) Locate the factor using the Future Value Factor table. The years before retirement are in rows, while the inflation rates are in columns.
d) Multiply the Total Retirement Fund with the future value factor to determine the future value of your retirement fund.
Example:Example: Years Before Retirement = 18 Inflation Rate = 5% Future Value Factor is 2.65
FactorsVALUEFUTURE
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THE MANULIFE GUIDE TO Retirement Planning
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Protection from Uncertainty through Riders
Guaranteed Protection
Your Complete Retirement PackagePRODUCT SOLUTIONS
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THE MANULIFE GUIDE TO Retirement Planning
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Secure the retirement fund in the event of a dread disease with Enhanced Critical Illness rider.
Continue the build-up of the retirement fund in the event of disability through the Total Disability Waiver.
Protection from Uncertainty through Riders
Guaranteed Insurance protection up to age 100.
Guaranteed limited premium-paying period options.
Guaranteed Protection
Maximize your returns through access to investment experts.
Enjoy flexibility through various fund transactions.
Build your retirement fund through different variable life funds.
Growth Potential through an investment component
PRODUCT SOLUTIONS
13b
Protection . Wealth . Savings . Education . Health
1
PREMIUMSWITHDRAWALSACCOUNT VALUE
6.0M
5.5M
5.0M
4.5M
4.0M
3.5M
3.0M3.0M
2.5M
2.0M
1.5M
1.0M
0.5M
0
PLAN DETAILS:Insured: Male, Age 40
15-Pay Manulife FlexiRetire Package, (Annual Premium: P156,586)
- Manulife FlexiRetire, 15-Pay, P1,046,000 Face Amount
- V- VL Add-on, PhP 445,000 Face Amount
- Enhanced Critical Illness Rider, PhP 1,046,000 Face Amount
- Total Disability Waiver for Basic and VL Add-on
WorksMANULIFEFlexiRetire 15-Pay
HowPhP 7.5 MillionTOTAL WITHDRAWALS FOR10 YEARS (STARTING AT AGE 65):
600K630K661K694K729K
765K
804K
844K
886K
930K
PhP 2.3 MillionTOTAL PREMIUMS
PRODUCT SOLUTIONS
15-Pay
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Protection . Wealth . Savings . Education . Health
1
PREMIUMSWITHDRAWALSACCOUNT VALUE
6.0M
5.5M
5.0M
4.5M
4.0M
3.5M
3.0M3.0M
2.5M
2.0M
1.5M
1.0M
0.5M
0
PLAN DETAILS:Insured: Male, Age 40
10-Pay Manulife FlexiRetire Package, (Annual Premium: P191,466)
- Manulife FlexiRetire, 10-Pay, P1,000,000 Face Amount
- V- VL Add-on, PhP 550,000 Face Amount
- Enhanced Critical Illness Rider, PhP 1,000,000 Face Amount
- Total Disability Waiver for Basic and VL Add-on
WorksMANULIFEFlexiRetire 10-Pay
HowPhP 7.5 Million
TOTAL WITHDRAWALS FOR10 YEARS (STARTING AT AGE 65):
600K630K661K694K729K
765K
804K
844K
886K
930K
PhP 1.92 MillionTOTAL PREMIUMS
PRODUCT SOLUTIONS
10-Pay
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Save Grow Enjoy
6.0M
5.5M
5.0M
4.5M
4.0M
3.5M
3.0M3.0M
2.5M
2.0M
1.5M
1.0M
0.5M
0
41 4243 4445 4647 4849 5051 5253 5455 5657 58596061 6263 6465 6667 6869 7071 727374
PhP 7.5MTOTAL WITHDRAWALS
PhP 1.06MTOTAL PREMIUMS PAID
600,000630,000
661,500
694,575
729,304
765,769
804,057
844,260
886,473
930,797
PREMIUMSWITHDRAWALSACCOUNT VALUE
Age:Annual Basic Premium:
Top-Up Premium:Total Annual Premium:
Pay Period:Face Amount:
Potential withdrawal value:Potential withdrawal value:
40 Php 50,000Php 162,500Php 212,5005 Years Php 500,000 (10x multiplier)Withdrawal values starting at Withdrawal values starting at age 65 for 10 Years based on 5% inflation rate projection
For the Manulife Affluence Builder Min. 5-Pay package, annual rider premiums totaling P2,014 will be added to the total annual premium quoted above.
WorksMANULIFEAffluence Builder Min. 5-pay
HowMin. 5-pay
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THE MANULIFE GUIDE TO Retirement Planning
Protection . Wealth . Savings . Education . Health
Build an education fund through different variable life funds.
Gain access to investment experts.
Receive non-guaranteed Loyalty Bonus which can be withdrawn.
Upside potential on your investment fund
Enjoy additional protection with the packaged Accidental Death Benefit and Total Disability Waiver.
Prepare against financial losses in the event of a dread disease with Enhanced Critical Illness rider.
Increase the death benefit for a minimal amount with the Term Rider.
Additional Protection through Riders
Choose the amount and timing of premium payments.
Program the schedule of partial withdrawals.
Manage your investments through various fund transactions (e.g. fund allocation change and fund switching)
Enjoy the freedom to choose the fund you will invest on.
Tailor fit the level of death cover to suit your budget and protection need.
Control and FlexibilityMin. 5-PayMin. 10-Pay
PRODUCT SOLUTIONS
15b
Protection . Wealth . Savings . Education . Health
Save Grow Enjoy41 4243 4445 4647 4849 5051 5253 5455 5657 58596061 6263 6465 6667 6869 7071 727374
6.0M
5.5M
5.0M
4.5M
4.0M
3.5M
3.0M3.0M
2.5M
2.0M
1.5M
1.0M
0.5M
0
600,000
630,000
661,500
694,575
729,804
765,769
804,057
844,260
886,473
930,797
PhP 7.5MTOTAL WITHDRAWALS
PhP 1.27MTOTAL PREMIUMS PAID
PREMIUMSWITHDRAWALSACCOUNT VALUE
Age:Annual Basic Premium:
Top-Up Premium:Total Annual Premium:
Pay Period:Face Amount:
Potential withdrawal value:Potential withdrawal value:
40 PhP 40,000PhP 87,000PhP 127,00010 Years PhP 520,000 (13x multiplier)Withdrawal values starting at Withdrawal values starting at age 65 for 10 Years based on 5% inflation rate projection
For the Manulife Affluence Builder Min. 10-pay package, annual rider premiums totaling P1,686 will be added to the total annual premium quoted above.
WorksMANULIFEAffluence Builder Min. 10-pay
HowMin. 10-pay
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THE MANULIFE GUIDE TO Retirement Planning
Protection . Wealth . Savings . Education . Health
Build an education fund through different variable life funds.
Gain access to investment experts.
Receive non-guaranteed Loyalty Bonus which can be withdrawn.
Upside potential on your investment fund
Enjoy additional protection with the packaged Accidental Death Benefit and Total Disability Waiver.
Prepare against financial losses in the event of a dread disease with Enhanced Critical Illness rider.
Increase the death benefit for a minimal amount with the Term Rider.
Additional Protection through Riders
Choose the amount and timing of premium payments.
Program the schedule of partial withdrawals.
Manage your investments through various fund transactions (e.g. fund allocation change and fund switching)
Enjoy the freedom to choose the fund you will invest on.
Tailor fit the level of death cover to suit your budget and protection need.
Control and FlexibilityMin. 5-PayMin. 10-Pay
PRODUCT SOLUTIONS
16b