Dumaguete Info Search


QUESTION: Philippines Retirement Pension for Filipino Wife

Discussion in 'Banking - Investing - Finances' started by Brian Oinks, Apr 8, 2017.

  1. Dutchie

    Dutchie DI Member Showcase Reviewer Veteran Army

    Messages:
    123
    Trophy Points:
    63
    Location:
    Dumaguete
    Ratings:
    +198 / -0
    Blood Type:
    A+
    The trouble with state pensions is that politicians usually have a decision making horizon that reaches no further than the next elections.
    I will take the Dutch history as an example because I am most familiar with it, but I know for a fact that in most developed countries public pension systems suffer the same type of problems.
    Typically, state pensions are funded on a "pay as you go" basis, which means that tax/premium payers today do not "save" for their own pensions but pay for the pensions of current pensioners. This choice is made by politicians because starting a state pension system sounds much nicer if you can promise people who never paid a dime for it a full pension when they turn 65 anyway.
    Thus my grandfather (born 1900) never knew he would get a free pension until the law was implemented in 1956, and had been saving/investing for his retirement for a long time, when suddenly a majority in parliament decided to implement a state pension for everyone over the age of 65. Hurray, double income for my grandfather after retirement (more votes for the politicians).
    Sadly, pay as you go systems work well while the population in a country looks like a pyramid (many youngsters, few pensioners), but they cause substantial problems when a population stops growing or even shrinks (less people paying the pension premiums, more pensioners). Of course, politicians were warned by actuaries (insurance math scientists), economists and demographers. Amazingly demography (population studies) is pretty much an exact science, where long term predictions like "how many babies will be born 10 years from now", and "how many pensioners will there be 15 years from now" are very reliable.
    But despite these warnings no measures were taken until it was too late for a smooth solution and there was no alternative but to hike up the age at which people can retire. So suddenly I and everyone else below 65 were told that instead of being able to retire at 65, we had to work another 2 years.
    Luckily in the Philippines the population graph will continue to look like a pyramid for the next 20 years or so at least, so they still have time to avoid the mistakes of the developed world. Sadly I have the feeling that they will not (they're politicians after all).
     
    • Agree Agree x 5
  2. OP
    OP
    Brian Oinks

    Brian Oinks That's Mr. Pig to you Boy! :) Highly Rated Poster

    Messages:
    1,999
    Trophy Points:
    331
    Location:
    Negros Oriental - Near to Zamboanguita ;)
    Ratings:
    +1,525 / -1
    Blood Type:
    A+
    This sounds very much like what is happening in Australia, now people need to work longer before they are entitled to retire meaning many more will work until they die and never collect, while the Politicians after serving their term retire on a minimum of $250,000.00 a year tax Free regardless of their income via working after retirement, their collective wealth and they get that with free use of Government cars and Flights etc ALL the perks... Makes you wonder who's retirement the Tax Payers are really funding... I am SURE this is true in other countries also... The Tax Payers are being dragged down by all the dead wood who are nothing more than oxygen thieves...

    I wonder if the President will draw the same Pension here as the next person, his fellow Filipino who supports him so well, when he retires, or will he receive a nice BIG FAT Pension like those in the West?
     
  3. birdwatch

    birdwatch DI Forum Adept

    Messages:
    477
    Trophy Points:
    105
    Ratings:
    +308 / -0
    Blood Type:
    A+
    My Japanese kids aren't expecting to get anything at all when their time comes.
     
    • Agree Agree x 1
    • Informative Informative x 1
  4. OP
    OP
    Brian Oinks

    Brian Oinks That's Mr. Pig to you Boy! :) Highly Rated Poster

    Messages:
    1,999
    Trophy Points:
    331
    Location:
    Negros Oriental - Near to Zamboanguita ;)
    Ratings:
    +1,525 / -1
    Blood Type:
    A+
    There is no Retirement/Pension plan in Japan?

    I NEED to look into a good Attorney who can make a Will for us so in the event my Wife dies her SS goes to our Daughter until she is of age along with any property etc so the Gold diggers do not end up with everything and she misses out...
     
    • Like Like x 2
  5. birdwatch

    birdwatch DI Forum Adept

    Messages:
    477
    Trophy Points:
    105
    Ratings:
    +308 / -0
    Blood Type:
    A+
    There is but it has a notoriously high rate of evasion.
     
  6. OP
    OP
    Brian Oinks

    Brian Oinks That's Mr. Pig to you Boy! :) Highly Rated Poster

    Messages:
    1,999
    Trophy Points:
    331
    Location:
    Negros Oriental - Near to Zamboanguita ;)
    Ratings:
    +1,525 / -1
    Blood Type:
    A+
    Evasion; As in?
    Workers evading paying into the scheme?
    Or;
    Government evading paying those who contribute upon retirement?
     
    • Like Like x 1
  7. birdwatch

    birdwatch DI Forum Adept

    Messages:
    477
    Trophy Points:
    105
    Ratings:
    +308 / -0
    Blood Type:
    A+
    Your savings in the bank will be gone in a heartbeat once you evade taxes but not in the case of NP evasion.
     
    • Informative Informative x 1
  8. jimeve

    jimeve DI Forum Luminary Highly Rated Poster Showcase Reviewer Blood Donor Veteran Army

    Messages:
    2,601
    Trophy Points:
    321
    Occupation:
    Painter & decorator
    Location:
    Philippines.
    Ratings:
    +906 / -0
    Blood Type:
    A+
    Are you a fil
    I'm talking about my in-laws, Filipino's, are you a Filipino too?
     
  9. cabb

    cabb DI Forum Patron ✤Forum Sponsor✤

    Messages:
    1,018
    Trophy Points:
    226
    Ratings:
    +733 / -0
    No and neither was my Grandmother.
     
  10. marc.oz

    marc.oz DI Junior Member

    Messages:
    18
    Trophy Points:
    48
    Ratings:
    +12 / -0
    Blood Type:
    I don't know.
    The max contribution for a self employed member is 1,769 pesos and the max pension for that member is about 9,000 pesos a month. This info was made available by an SSS employee who is contributing this amount to secure her mother a decent pension at retirement. I don't really know much more than that but with these figures you could figure out what the pension would be for smaller contributions.
     
    • Informative Informative x 1
Loading...