LIVED EXPERIENCES:

PHILIPPINES VS. US RETIREES

Submitted by:
Ampoon, Arnold P.
Avila, Aiko S.
Bularon, Eunio C.
Jumangpang, Artemis O.
Manliguez, Christine Mae L.

Submitted to:
Mr. Ramie L. Bulaybulay, M.A

Lived Experiences: Philippines vs. US Retirees

Retirement, as defined in the Merriam-Webster dictionary is the act of ending
your working or professional career. Someone who has permanently who has stopped
working in a job or profession is termed as retiree. People retire for many reasons.
Some may retire because of old age. Some may retire because it is mandatory. Some
may retire because of health complications resulting to inability to inability to continue
work any further.
There is a story to every retirement, retirees have their own experiences. We
could say that retirement is part of the work culture. Retirees from different parts of the
world have different experiences which can be due to difference in laws and regulations,
preparations, and perspectives.
In line with this we will discover the experiences of the retirees from our
homeland, Philippines, and the United States of America.

Retirement in the Philippines

Retirement in the Philippines is governed by Labor Code (Art. 287). Under this
code an employee may be retired upon:

Reaching the retirement age established in the collective bargaining

agreement (CBA) or other applicable employment contract.
In the absence of such agreement, the employee may retire upon reaching the
age of 60 or more, but not more than 65, provided he has served at least 5
years or more in the same establishment. The age 60 or more, but below 65, is
considered as the voluntary retirement age. Sixty-five is considered as the
compulsory retirement age.

However, a company may have CBA or employment contract setting a retirement

age different (higher or lower) from that fixed by law. For example, the CBA may fix
the retirement age at 50. The CBA or employment contract may also establish a
retirement age based on years of service of the employee. For example, it may
provide that the employee may be retired after 20 years of service.
There is no uniform retirement age for all since different types of jobs and
professions require different skills, knowledge and physical fitness and ability. A uniform

retirement age for all would be unfair, impracticable and absurd. It would also interfere
with the peoples freedom to enter into contracts relating to their employment.

The Retirement Pay in the Philippines

If the establishment has a CBA or employment contract providing for a retirement
plan or benefits to employees, the employee shall be entitled to receive the benefits as
provided in the said CBA or contract. However, such benefits must not be less than that
provided under the Labor Code. Under the New Retirement Law, it is a financial
obligation of an employer to give retirement pay to its employees reaching 60 to 65
years of age, who has served the company for at least five (5) years.
Retirement in the USA
What is Retirement USA?

Retirement USA is a national initiative working for a new retirement system that,
along with Social Security, will provide universal, secure, and adequate income for
future retirees.

Retirement USA is convened by five organizations the AFL-CIO, the

Economic Policy Institute, the National Committee to Preserve Social Security
and Medicare, the Pension Rights Center, and the Service Employees
International Union that recognize that retirement income security is a major issue
of concern for current and future retirees.
Need of Retirement USA

Our retirement system is failing too many Americans. While Social Security
continues to do its part, our private pension system is not delivering what most retirees
need to provide for their basic needs.

Even before the recent economic downturn, retirement security had become a
major national concern, as companies increasingly shifted from traditional pensions to
do-it-yourself savings plans.

The faltering stock market and dwindling 401(k) accounts have turned a major
concern into a crisis, highlighting the weaknesses in our nations patchwork retirement
system.

What is Retirement USA doing?

Retirement USA has developed 12 Principles for a New Retirement System,

which provide a framework for a system in which employers, workers, and the
government would share the responsibility for the retirement security for all American
workers.

Retirement USA has issued a call for the submission of visionary proposals for
a future private retirement income program. Selected proposals were presented at
a Re-Envisioning Retirement Security conference in Washington, D.C. on October 21,
2009.
Principles for a New Retirement System in the US

Universal Coverage. Every worker should be covered by a retirement plan. A

new retirement system that supplements Social Security should include all
workers unless they are in plans that provide equally secure and adequate
benefits.

Secure Retirement. Retirement shouldn't be a gamble. Workers should be able

to count on a steady lifetime stream of retirement income to supplement Social
Security.

Adequate Income. Everyone should be able to have an adequate retirement

income after a lifetime of work.The average worker should have sufficient
income, together with Social Security, to maintain a reasonable standard of living
in retirement.

Shared Responsibility. Retirement should be the shared responsibility of

employers, employees and the government.

Required Contributions. Employers and employees should be required to

contribute a specified percentage of pay, and the government should subsidize
the contributions of lower-income workers.

Pooled Assets. Contributions to the system should be pooled and professionally

managed to minimize costs and financial risks.

Payouts Only at Retirement. No withdrawals or loans should be permitted

before retirement, except for permanent disability.

Lifetime Payouts. Benefits should be paid out over the lifetime of retirees and
any surviving spouses, domestic partners, and former spouses.

Portable Benefits. Benefits should be portable when workers change jobs.

Voluntary Savings. Additional voluntary contributions should be permitted, with

reasonable limits for tax-favored contributions.

Efficient and Transparent Administration. The system should be administered

by a governmental agency or by private, non-profit institutions that are efficient,
transparent, and governed by boards of trustees that include employer,
employee, and retiree representatives.

Effective Oversight. Oversight of the new system should be by a single

government regulator dedicated solely to promoting retirement security.

The Retirement Income Deficit

The deficit figure covers households in their peak earning and saving yearsthose in
the 32-64 age rangeexcluding younger workers who are just beginning to save for
retirement as well as most retirees. It takes into account all major sources of retirement
income and assets: Social Security, traditional pension plans, 401(k)-style plans, and
other forms of saving, and housing.
The measure assumes people will continue to work, save, and accumulate additional
pension and Social Security benefits until they retire at age 65, later than most people
currently retire. It also assumes that retirees will spend down all their wealth in
retirement, including home equity. The deficit is thus in many respects a conservative
number.
The Center calculated the Retirement Income Deficit for Retirement USA in a
three-step process.
Step 1: The Center first calculated a replacement rate projected retirement income
as a percent of pre-retirement income for each household in a representative
sample.
Step 2: Next, it compared that projected replacement rate with a target rate that would
allow the household to maintain its standard of living in retirement.
Step 3: Finally, if the projected replacement rate was less than the target rate, it
estimated how much additional savings each household would need today to close the
retirement income gap, and then summed these amounts across households.

What is the Social Security Retirement Age?

Social Security's full-benefit retirement age is increasing gradually because of legislation
passed by Congress in 1983. Traditionally, the full benefit age was 65, and early
retirement benefits were first available at age 62, with a permanent reduction to 80
percent of the full benefit amount. Currently, the full benefit age is 66 for people born in
1943-1954, and it will gradually rise to 67 for those born in 1960 or later. Early
retirement benefits will continue to be available at age 62, but they will be reduced
more. When the full-benefit age reaches 67, benefits taken at age 62 will be reduced to
70 percent of the full benefit and benefits first taken at age 65 will be reduced to 86.7
percent of the full benefit.
There is a financial bonus for delayed retirement. An individual reaching the full-benefit
age in 2015 (66 years old) receives an additional 8 percent benefit for each year he or
she delays collecting benefits. If he or she delays taking benefits until age 70, the
benefit will be 32 percent higher because of that delay. The maximum retirement benefit
for someone who waits until age 70 to collect benefits is $3,501 a month in 2015
The Ideal Retirement Age
Age 65 is no longer when most people expect to retire.
By Emily Brandon June 10, 2013, at 10:00 a.m.
Retirement at age 65 is no longer the goal for most working Americans. In 2010, for the
first time, more Americans said they planned to retire after age 65 than before it, and
since then the gap has widened, according to a recent Gallup survey of more than
2,000 U.S. adults, including 636 retirees. More than a third (37 percent) of workers say
they expect to retire after 65, up significantly from 14 percent in 1995.
Only about a quarter (26 percent) of employees are still aiming to retire at 65. Another
quarter (26 percent) of adults are hoping to retire before age 65, down from 49 percent
in 1995.
People who are closer to age 65 generally project later retirement ages than younger
workers. More than half of workers ages 58 to 64 plan to retire after age 65, compared
with 36 percent of people in their early 50s, 38 percent of 30- and 40-somethings and
just over a quarter (26 percent) of people under age 30. "People who are very near
retirement age in their 50s and 60s are looking at their Social Security benefits, 401(k)
balance, their cost of living, medical costs and food costs and have a better sense of
what things might be like when they actually retire," says Jeffrey Jones, managing editor
of Gallup Poll. "They are more aware that early retirement might not be as much of a
realistic option for people today as it was 30 or 40 years ago."

Working longer. Individuals are pushing back their retirement age both because they
need more time to save and because they enjoy many aspects of their jobs. Threequarters (76 percent) of employees say they will continue working past retirement age,
with 40 percent working because they want to and 35 percent because they will have to,
Gallup found. Part-time work in retirement (61 percent) is greatly preferred to a full-time
job (15 percent). But only 19 percent of those surveyed plan to completely stop working
at retirement age by choice.
Individuals with high salaries are the most likely to want to stick with their jobs. Nearly
half (49 percent) of those earning $75,000 or more say they plan to work past retirement
age because they want to, compared to about a third of people earning less money. In
contrast, people earning between $30,000 and $74,999 (39 percent) and especially
employees earning less than $30,000 (43 percent) are more likely to continue working
in retirement because it's necessary to maintain their standard of living.
Medicare eligibility. Qualifying for Medicare plays a big role in many people's
retirement decisions. Medicare coverage can start as early as the month you turn age
65. People who retire before age 65 face the risk of being forced to pay high premiums
for private health insurance or COBRA coverage, or even being denied health insurance
altogether. "One of the greatest retirement costs people face, even if they are healthy, is
medical care and health insurance," says Brent Neiser, a certified financial planner and
a senior director at the National Endowment for Financial Education in Denver. "You
probably do not want to get out of a reasonable health insurance situation before age 65
because if you have a gap that needs to be filled, it could be very expensive."
Higher Social Security retirement age. The increasing Social Security retirement age
may also be inspiring people to work longer. While you can sign up for Social Security
as early as age 62, your payments will be reduced unless you wait until your full
retirement age to start payments. The full retirement age is 65 for everyone born in
1937 and earlier, but has since increased to 66 for most baby boomers and will further
climb to 67 for everyone born in 1960 or later. "You are not tapping into the full potential
of Social Security if you elect to claim Social Security before age 66 because it is
significantly discounted. Some people might call it a haircut," Neiser says. "That smaller
amount adds up to thousands and thousands of dollars less throughout your lifetime."
Story
Jeanne Majors
Brooklyn, NY

On May 4th of this year I was able to leave the NYC Shelter system for a room at the
YWCA in downtown Brooklyn. How did this occur? Well, I started collecting early Social
Security retirement benefits in March of this year and I was able to move in. Prior to this,
I was in the shelter system from August 2010 because my retirement income wasn't
enough to get affordable housing in NYC without a job (full time or part time). My
savings were exhausted due to bills, transportation and helping a disabled younger
sister (who is 45) with some incidentals.
If the Republicans look to take monies from Social Security to offset the deficit, then I
can no longer afford to live at the YWCA and would have to go back to depending upon
tax-supported dollars for shelter living. At 62, (single, and African American) this would
be detrimental to my health and everything that I worked for. I retired with the thought
that some employment for seniors would be available until I could collect my Social
Security retirement benefits. Then I would be able to live somewhat comfortably.
I don't think our Congressional Representatives have any idea what it is to live on a
fixed income, let alone skip meals or do without medications. They should try it
sometime!!!!

Proposal
Retirement Security and Longevity Risk- Mark Shemtob, Abar Pension Services
Inc.
The Retirement Security and Longevity Risk proposal would provide near universal
longevity insurance protection in a cost efficient manner. The program would be
mandatory to all workers and would provide insurance to protect against the risk
individuals face in outliving their retirement savings by providing lifetime benefits
beginning at the extended longevity age. Employers, employees and the government
would share in funding the program which would be administered privately with
government oversight.