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Top 5 Tips on How to Save for Retirement - A Must-Know Guide for Overseas Filipinos in Germany

23 Jan 2024

Going to Germany for work and education is a feast for the people of the Philippines. Germany is a welfare state with a robust economy and a thriving job market. Therefore, the people of developing countries, including the Philippines, travel to Germany for work, earn a living, and send money online to Philippines from Germany to offer financial support back home.

But working abroad entails many challenges, regardless of whether you work in a welfare state like Germany or elsewhere. One of these challenges is the length of your job abroad. This means that your job will end one day, and you will retire.

What then?

Have you ever thought about your finances after you retired?

Well, if you haven’t yet, then the time to think about your post-retirement financial status and act accordingly is now!

This blog will shed light on how you can prepare for your retirement in the financial context.

Understanding Savings – The First Step to Financially Secure Your Post-Retirement Life

Savings are the first step to preparing for your life after retirement. The entire Filipino diaspora reaches about 10 million, according to a report by Pilot Guides, and other migrants, too, have to realize that savings are what your post-retirement financial health is based upon.

Saving is the chunk of your income after you have spent money on necessary expenses like rent, utility, food, and so on. Saving consists of the money you set aside for your future, which may not necessarily cover your life after retirement, as savings have different objectives.

For example, you can save money for a short-term financial objective, such as updating your smartphone or buying a new model of a laptop. For the short-term objectives, you normally keep your savings as liquid cash, whereas for the long-term objectives, you make investments in different areas like property, gold, and business.

Importance of Savings

It is through savings that you attain financial security both in the present and in the future. But remember that saving money is a habit that does not come naturally. So, you have to master the skill of saving money.

If you start saving money right from today, the time will not be far when you will become financially independent. No matter how much you earn, where and how you send money to Philippines online from Germany, it is only saving money that helps you achieve your financial goals. Because your earnings and job, as mentioned earlier, will draw to a close one day, leaving you financially vulnerable.

Therefore, the importance of saving money is fairly obvious.

Now, let’s look at some of the benefits and advantages of saving money.

Prime Benefits and Advantages of Saving Money

Apart from the importance of savings, the practice yields several financial dividends and offers multiple benefits. But the catch is that saving money has to be a habit. Otherwise, the following benefits of savings will be hard to get.

Protection against Financial Emergencies

Life is unpredictable and has the habit of throwing at you what you are hardly prepared for. Financial emergencies are one such challenge life throws your way regularly. But the money you set aside for financial emergencies helps you steer clear of financial testing times.

Affording Quality Education

Education in every country, including the Philippines, has multiple layers and standards. And regardless of the quality of education, its cost is increasing every year, rendering it unaffordable. Therefore, if you save money, it can help you afford your children a high-quality education.

Financial Objectives

You have some financial objectives to achieve when you expatriate to Germany from the Philippines. Don’t you? Or do you earn a living abroad to merely offer financial aid back home in every money transfer from Germany to Philippines to meet the running expenditures regularly for as long as you work?

Well, the answer will be a mere reproduction of what you think!

You indeed have several financial objectives that you can achieve only through savings.

Wealth Accumulation

The habit of saving money helps you build your wealth. When you keep setting aside money from your regular income, it only adds to the money already saved. This wealth accumulation can help you make investments -- big and small.

As a Filipino migrant earning a living in Germany, you send money back home regularly. Right? This process incurs costs that can affect your savings. Therefore, you must know and follow the tips to save money on your international money transfers as an expatriate.

Let’s now learn the tips to save for your life after you have retired from your job abroad.

Tips to Save Money for Your Life after Retirement

Whether you are on a job or running a business, your retirement is inevitable. A time comes in your life when you can no longer work and earn a living, be it as a migrant or a native. For such a scenario, the following tips will help you save money for your life post-retirement.

Set Realistic Retirement Goals

It is easy to set a financial goal for purchasing a car or house but planning for your retirement is a complex and technical process. It is a challenging area in your finances. Therefore, set your personal financial goals realistically and in an achievable way.

Open a Retirement Account

After you have decided how much to save, it is time for you to open a retirement account. Never rely on the singular account that you normally have for routine financial matters and transactions. Always open a separate account and contribute to it regularly.

Choose Investment Options Wisely

Saving money alone is not enough. If you want to reap the benefits of your savings explained above, you will have to invest your savings. But remember that savings are a tricky area. You must exercise caution while planning on investments. Assess the risk involved thoroughly.

Keep an Eye on the Financial Good and Bad

Keep an eye on the positives and negatives in the financial world. Inflation, in this regard, is a prime example to explain the financial bad. On the other hand, the higher rates of interest on your savings and investments are the positives. So, keep an eye to guard against the negative and grab the positive as and when they arise.

Work Longer and Start Now

Think about your retirement from now, and since you are young, make sure to work for a longer time because you have the stamina. In addition, never forget that the time to prepare for your life post-retirement life and savings is now! 

Do not delay it any further if you have not begun yet.

Wrapping Up the Discussion

The money transfer service provider you choose to send money to Philippines from Germany plays a significant role in helping you save as a migrant.

If you, therefore, choose ACE Money Transfer for this purpose, your objective of savings on your online money transfers from Germany to the Philippines is optimally fulfilled. The firm charges a low fee and offers live and market-competitive currency exchange rates and many other unique advantages like speed and safety from just one stop.


What is saving?

Saving is the money that you save from your income after you have met all the essential expenditures. Savings are normally kept in the form of cash or the equivalent of cash, like a bank deposit or assets you can easily cash.

Why is saving money important for me?

Saving money is critically important for you because, as a migrant, you work in a foreign country to earn a living and support your family financially back home. So, if you do not save money, your entire struggle underlying expatriation goes back to zero once you return to your native country.

What benefits can I get by saving money?

Saving money offers several advantages and benefits. Some of these advantages include big purchases, accumulation of wealth, financial strength to make investments, getting a steady stream of passive income, and preparing for emergencies.

Why is saving necessary for my post-retirement life?

Saving money for your post-retirement life is critically important for you because your job abroad will end one day. This can lead to your financial dependence when you are no longer able to work and earn a living if you do not save money. So, saving money for your retirement when you are young can lead to your financial independence later.

What are the tips to save for my life after retirement?

Some of the tips to save money for your retirement are setting realistic retirement financial goals, opening a retirement account and regularly contributing to it, considering investment opportunities wisely, keeping a close eye on financial ups and downs like inflation, starting to prepare at the earliest, and working longer when you are young and can do so easily.



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