Do you know about your Retirement Benefit?

Article 287 of the Labor Code, as amended by Republic Act No. 7641, provides:

Retirement Plan. Credits: s_falkow

"Article 287. Retirement. – Any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract.

In case of retirement, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any collective bargaining agreement and other agreements; Provided, however, That an employee’s retirement benefits under any collective bargaining and other agreements shall not be less than those provided herein.

In the absence of a retirement plan or agreement providing for retirement benefits of employees in the establishment, an employee upon reaching the age of sixty (60) years or more, but not beyond sixty-five (65) years which is hereby declared the compulsory retirement age, who has served at least five (5) years in the said establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one whole year.

Unless the parties provide for broader inclusions, the term one-half (1/2) month salary shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more than five (5) days of service incentive leaves.

Retail, service and agricultural establishments or operations employing not more than ten (10) employees or workers are exempted from the coverage of this provision.
Violation of this provision is hereby declared unlawful and subject to the penal provisions provided under Article 288 of this Code."

In a quick summary, if you, as an employee (in the Philippines),
- has served the organization for at least 5 years
- is between 60 to 65 years old

Then you may avail of your retirement benefit, which is 
- equivalent to at least 1/2 month salary for every year of service
- a fraction of at least six (6) months being considered as one whole year

The law is intended to protect the welfare of the workers and employees.

A Life in a Day by Sun Life

Sharing another beautiful film by Sun Life.

In less than 9 minutes, "A Life in a Day" captures the cycle of life - from childhood to old age. It also captures the precious moments of life through the eyes of a young boy.

Even though the film is short, the story hits directly to the heart. And in less than 9 minutes, it made me reminisce on my childhood days, my school days, my wedding day, the day I gave birth to my son and on trying to be the best mom and wife in the world.  It also made me think back how my parents had worked so hard to care for us and how I am now working hard and caring for my own family's financial security.

The short video is greatly executed through shadow play. It is simple; yet so sweet and so touching that I have to have some tissue papers beside me.

Thank you, Sun Life, for sharing such a meaningful video. It definitely made me reflect on life and especially on the future of my family.

Reference: Experience the Sun

After viewing this film, did you have a flashback and reflect like I did?

Life is short. Enjoy life. Say "I love you" to your loved ones. And don't forget to plan for yours and your family's financial security as we do not know what the future will be.

And if you haven't seen it yet, check out "1945", Sun Life's 1st SunShorts film. Don't forget to have tissue papers around as well because you'll need them when you watch this great real life story film. :)

Getting Your Financial House in Order

Sometimes, I had the chance to do a financial wellness presentation to companies. Before the presentation, we would have a simple workshop and in most cases, the participants would share their own financial knowledge and experience on how to set aside funds for their future as well as list their issues on not being able to save.

Savings. Credits:
UNHHealth Health Services, University of New Hampshire

The most common statement that came out from the workshop is that no matter how hard one tries, it is hard to save money because of the cost of living, recurring payables and/or immediate needs/wants.

To help answer the issue on not being able to save, some basic laws from Beth Kobliner's "Personal Finance in Your Twenties and Thirties" can help prioritize the checklist on the financial plan.

1. Get health insurance – A single medical problem could bankrupt you. Therefore, health insurance must become your highest priority. If your employer doesn’t offer it, get one for yourself. This is the first step in financial planning.
2. Reduce your debt – The best way to start saving is to reduce your high-interest debt. Or better, write off your debt. The interest rates on some loans / credit cards are higher than the return you’d receive from investing the money.
3. Start saving for retirement – The best time to start saving is when you’re young. Interest rates will really start working for you as you get older and accumulate principal.
4. Reduce your banking costs – Most Saving accounts, Checking accounts, etc have maintaining balances. If you are not careful and go below the minimum balance, fees can take a big bite out of your bank balance.
5. Build up a nest egg for emergencies – What would you do if you were suddenly laid off? Save enough to cover your living expenses for at least six months. Some banks have facility to automatically shift funds from your checking account into a savings or mutual fund account.
6. Become an investor – Join a mutual fund pool to reduce your risk. Invest in mutual funds, which reduce your risk and keep you even with inflation.
   
7. Reduce your taxes – Look for ways to lower your annual taxes. Sometimes there are discounts if you pay your taxes early.

Start paying attention to your finances today. Apply the 7 rules and develop the habits that will help you for the rest of your financial life.

Success happens here. Credits: lee.fly