How Much Do You Need to Retire Wealthy

Almost everyone wants to retire wealthy. There are those who think that their SSS pension is sufficient to handle all their expenses and live a comfortable life when they reach their golden years. Sadly these people only see the the truth when they realize their SSS pension is barely enough to pay for medical expenses. If you are asking yourself how you could possibly retire wealthy when you only earn a meager income.

There are 4 main factors to consider when it comes to building wealth. Income you generate, Portion of your income you set aside for yourself, Duration of building your wealth and Type of Investments you use in growing your money. Each of these factors affect one another and for most of us we usually have one factor we consider to be our weakness. You need not worry about your deficiency since you can compensate for the deficiency on the other factors I mentioned.

How much do you need to accumulate in order to retire rich in the Philippines? How long will it for a person on a particular income bracket to be able to retire wealthy? In order to understand the 4 factors I mentioned earlier, we will examine the three examples below.

The three examples have different ages and income bracket. As I mentioned in my previous post What is "RICH" in the Philippines a 60 year old should have an annual household income of Php2,700,000.00 and a minimum net worth of Php32,000,000.00 in order to be considered rich in the Philippines. Let us see how long will it take the three individuals to retire wealthy at the age of 60 if they started accumulating their wealth today?


The sample above illustrates how someone can retire wealthy even if he/she has some deficiency on one of these factors. A young employee can retire wealthy if he/she starts early and invest a substantial portion of his/her income. Although he/she won't qualify on the minimum annual income of rich people , his/her net worth will qualify him/her as one of the few rich people in the Philippines.

A person who doesn't earn millions can retire wealthy by starting at a young age and investing in high return investments. A middle aged person can retire wealthy increasing his/her income and investing in high yielding investments. An old person needs to invest a huge amount in order for him/her to reach the desired amount. The best way to accumulate wealth is to start young, earn a huge income and invest a huge portion of your income, and invest in high return investments.

*This study is based on past performance of the PSEi and isn't a guarantee of future performance. Its sole purpose is to illustrate how a person can accumulate wealth no matter his income or age as long as he/she regularly saves and invests a portion of his/her income.