A Lesson from the Vetoed SSS Pension Increase Bill

Last year, the Senate approved the bill granting an extra P2,000 monthly to SSS pensioners. This was in response to the two million Filipinos who receive a meager amount of P1,200-P4,000 monthly pension which is not enough to pay for medicines due to illnesses that come with old age and other needs. There were some speculations though that the approval was linked to the 2016 elections. Nevertheless, retirees and pensioners were hopeful that the increase will happen.

However, the pensioners’ mood soured when Pnoy vetoed the bill this Thursday, 14th January. Apparently, Pnoy said that the increase will significantly decrease SSS’ income that will result to negative funds and undue closure by year 2029.

Here’s an excerpt of the president’s message:

“…the proposed pension increase of P2,000 per retiree, multiplied by the present number of more than two million pensioners, will result in a total payout of P56 billion annually. Compared against annual investment income of P30 billion-P40 billion, such total payment for pensioners will yield a deficit of P16 billion-P26 billion annually..In view of these considerations, I am constrained to veto” (House Bill No. 5842).

Source: http://www.interaksyon.com/article/122711/pnoy-vetoes-p2000-hike-in-sss-pensions

With the turn of events, what can we learn from Pnoy’s decision?

If we think about it, retirement should be a time to enjoy the fruits from years of our labor. But it seems that if we rely on our government for our retirement needs, there is no guarantee that we will be assured of our future. Even if we receive the highest monthly pension limit of P13,000, it will still not be enough to sustain the increasing cost of living especially during our retirement years.

So, what do we do now while we have the ability to earn?  

The best step to take is to look for different instruments that will fund our retirement. SSS pension is there to assist our future financial needs but it should not be the main source of our retirement fund.

We may look at different options out there by learning how savings, insurance, mutual funds, UITFs, stocks, bonds and other financial vehicles can help in reaching our goals.

It sure is better to save and invest early. I have a disclaimer though, make sure that we entrust our money in reliable institutions. Because in the end, it may already be too late and we may end up regretting not taking any action to secure our retirement needs. Don’t you agree?

3 Foolproof Steps to Reach your Financial Goals

The first step in any successful activity is the willingness to do it. The old adage, “If there’s a will, there’s a way”, never goes out of style and it also applies here.

You may well agree that it is best to focus on something if there’s no distraction as this allows your mind to become fully engaged in an activity. So, I am inviting you to allot time and full attention where you will not do other tasks for at least the first 2 steps. Once settled, I will share three simple and foolproof steps on how you can reach your financial goal.

Are you ready? Let’s begin!

I want to save money!

Prepare a piece of paper or word document. If you wish to write on a sheet of paper, start by thinking, “Why do I want to save?” Then once you have thought about it, you can write it beside ‘GOAL’.  Try not to make it too challenging that it will discourage you to start.

Once completed, ask yourself again, “What do I want to do to achieve this goal?” You can write as much as you can as long as it is something that you REALLY WANT TO DO and CAN DO. For a starter, it may be good to have at least 3 items. Then, assess if this will truly help you reach your goal.

To help you out, you may choose from the below list. Just edit and fit it based on your own needs. Or better yet, come up with your own entirely.

GOAL: I want to save money because:

  • I want to have a health insurance so I don’t worry about medical/hospital bills
  • I want to have a life insurance so I will not worry about my family’s future if something happens to me
  • my daughter/son will start going to school in 3 years
  • I want to buy my first car by January 2017
  • I need to pay for my education by the start of the school year (2016-2017)
  • I will travel to Singapore this coming summer and visit at least 3 places there
  • I want to retire by the age of 55 years old


  • put my loose change/coins (P5 or P10) in a piggy bank daily
  • after I receive my salary this payday, I will immediately set aside 10% of it for savings

Ex. Salary x % = Savings

At 10% : P 6,000 x 0.1 = P 600

  • open a bank deposit account to put in 5-10% savings from my salary
  • earn additional income
    – bake cakes and sell them to my friends/neighbors/officemates
    – have a garage sale this weekend : sell my old clothes, shoes and bags
  • ask help from financial experts about insurance and start one
  • learn how and invest in an investment vehicle like mutual fund, UITF, etc.

This is how it will look:

GOAL: I want to save money because….





I want to start today!

Now, you are finished with your goal and list. The next step is to PRIORITIZE.

They say that if someone is serious about bringing an idea come to life is not to put off what one can do today. So to do this, rearrange the order on your list or just place # 1 on the activity that you will DO TODAY and ACT on it.

This year would not be the same from today if you start it with something new and positive, right?  So, be bold and take that first step now.

I want to reach my goal!

In our hectic and busy world, sometimes we forget what’s important to us. After you start one activity on your, “What do I want to do to reach my goal?” list, do you stop there? Of course not, you’re way better than that.  Remember, you want to REACH YOUR GOAL.

To follow through, post your goal and list where you can see it often and go back to it at the end of the week or so. Then decide to start on the second or third item on your list. Once you have accomplished all the items on the list, check how far you are from your goal. Update your list if you wish to be more aggressive in reaching your goal on time.

That’s it, buddies! For someone with a strong resolve and a clear goal in mind, this is definitely foolproof since the success of this activity depends on YOU.

Also, have fun learning about yourself while doing it. We wish you only the best in your finances!

3 Financial Resolutions that will Change your Life Forever

As we start the year 2016, there may now be a number of resolutions on your list which are related to health, beauty, love, spirituality and more. However short or long your list is, I recommend that you add these 3 financial resolutions. If you haven’t created any list yet, you may still want to read on.

Just this December, we may have been so excited with our bonuses that as soon as we received our extra month’s pay, we spent hours in the mall splurging. From the time we’re out of the establishment, we’re already broke.

This may be the common scenario for most people.  Others may have a different story but with a similar result.  So, how can we avoid falling in the same financial deficiency cycle and get off on the right foot instead?

I invite you to read through and check how these three financial resolutions that can change your life forever. Enjoy!


Budgeting is a habit that creates financial mindfulness. It removes the stress of thinking where your hard-earned money is spent.

By creating a simple tracker of the cash that comes in and out, and where it is spent, you can manage your money better. If you are in debt, you can work your way out of it and also avoid getting in debt with proper budgeting.

However, although we would like to spend our money on living expenses, we are still bound to life’s uncertainties. This is why a good budget plan should include a portion for insurance.


Let’s face it. We can only plan so much. At the end of the day, we’re still unsure of what this year holds for us. If there are accidents, hospitalization or even death, are we prepared for the expenses?

An insurance policy can alleviate or entirely remove our worries for these unforeseen events. Without any insurance, we may resort to bite into high-interest loans which can bury us from terrible debts or borrow from relatives and friends which can taint good relationships if left unpaid. Unfortunately, aside from our self-esteem, it is usually our family and loved ones who suffer in these predicaments.

To avoid this, would it not be better to be hopeful for the best, but at the same time prepared for the worst to come? I leave this question for you to reflect on.


Once you understand your spending habits in your budget tracker, you can adjust your expenses in order to save for your most important life goals. It can be travelling to your dream destination, buying a car or house, preparing for retirement, etc.  So, it is sound to leave some amount for savings and investment.

Savings and investments are portions of the money that we set aside. Although these may not give us the immediate satisfaction that spending provides, they offer a more rewarding feeling when we reach our future goals.

Allocate regular amounts that will not affect your major needs. It is easier to start small but consistent, than to stretch our budget to save big amounts but fail to follow through. The key is to form a habit.

So there you go, our three financial resolutions on the 1st day of the year!

Start NOW, and your financial life will no longer be the same. Happy New Year!

A truth about life…And what one man did to prepare for it.

We can never tell what fate may bring us. Although we are on the top of our health, sometimes, there will still be surprises that will shake us – a medical condition, breakdown or an accident. And that’s a sad truth about life ; our physical bodies can be subject to illness, and ultimately, death.  But what we may not be aware of is that we can do something to prepare for it.

This is shared on this story where a family is able to survive a father’s sudden illness, because of life insurance. As his wife Tonia, said, “Everyone thinks because you’re going through a hard time, well, the bills don’t stop.. That’s the truth, you know. Your life may seem like it stopped, but everything around you is still going.”   

Watch the video to know more.

Video credit: LifeHappens.org @ https://www.youtube.com/watch?v=wEfdx5l0ens


A policy holder can purchase a term life insurance with additional benefits called “riders”.

Let’s define some of these terms.

What is a term life insurance?

A term life insurance is a policy that covers a certain period. It will depend on the policy owner if he wants to renew the contract once that period expires.

What is a rider?

To explain what a rider means, we will have to explain what a basic life insurance is first.

A basic life insurance includes a death benefit wherein the family or beneficiary receives a fixed amount stated in the contract should the policy owner passes away.

If the life insurance has a rider, this means that an additional benefit has been included to help meet some specific needs of the policy holder.  Some of these are: accidental death benefit, disability waiver, accelerated benefit and a lot more.

This means that life insurance is flexible and there are different riders available to suit our needs.  Amazing, yeah?