The Manulife Guide to Retirement Planning

Protection . Wealth . Savings . Education . Health

THE MANULIFE GUIDE TO Retirement Planning


where retirement is seen as an end to productive activities with individuals waiting in content in their rocking chairs.

Gone are the days


plans?retirementWhat are your

1



Ideally, retirement

should be...

And not...

1b



comfortably?retireDid you know that very few get to

2



BANKACCOUNT

45%DEPENDENT ON RELATIVES

30%DEPENDENT ON CHARITY

22%STILL

WORKING

2%FINANCIALLY INDEPENDENT

Source: SSS survey

2b



today than 10 years ago?

livelongerDid you know that people

3



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

3b



than you think.retirement yearslongerYou have

_Single _Married _Separated _WidowedCivil Status:

4



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

4b


Protection . Wealth . Savings . Education . Health14231427Php 2,978?

Php 8,586?Php 30,000?

5



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

5b



500,000

750,000

900,000

when you retireto prepare forwhat you needHospitalizationexpense is part of

6



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

6b



in the future?will be worthwhat you set aside today

Do you know how much

7



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

7b



start today?Why should you

8



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

8b



is possible.

Bridgingthe Gap

9



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:

9b


availablethe best optionTake advantage of

10



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

10b



delay?Why is it costly for you to

11



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

11b



FactorsVALUEFUTURE

12



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

12b



Protection from Uncertainty through Riders

Guaranteed Protection

Your Complete Retirement PackagePRODUCT SOLUTIONS

13



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


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

14


1


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

14b


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


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

15



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


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


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

16



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

Date post:	18-Jan-2017
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The Manulife Guide to Retirement Planning

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