Should You Boost Your Retirement Fund With Online Loans?

Ailene Amaro
Dec 10, 2020
Should You Boost Your Retirement Fund With Online Loans?

Retirement is always brushed off as a conversation for another time–until it isn’t. There isn’t a specific timeline that dictates how old you should be before quitting your job, relocating to a remote island, and living your life in peace. It can be 50 years from now or even within the next year. When you choose to retire is completely up to you, but that decision heavily relies on your ability to fund the rest of your life. Naturally, it’s never too early to start contributing to an ideal future free from corporate obligations. And it’s important to take those contributions seriously from the moment you enter the working world because the quicker you save, the earlier you can stop working. 

That poses a huge financial problem, especially for people living from paycheck-to-paycheck. While employers automatically match and contribute a portion of your salary to the SSS, the value is often small and not enough to ride out the rest of your years in comfort. With that in mind, you may be wondering whether or not you should boost your personal retirement fund by borrowing money from online loan apps. On the surface, the answer is a no–but there’s more to this strategy than meets the eye. 

Need extra cash? Humiram ng cash mula ₱1,000! Matatanggap agad-agad.  APPLY NOW

Your Retirement Fund And You 

The best way to approach retirement is to not think too hard about it, but also to think about it once in a while. Essentially, you want to do the basics, like setting up a pension plan or dedicated retirement savings account of your choice and contributing to it monthly. But don’t obsess over it and check your balance daily, as that can incite some withdrawal temptations. Check back once in a while to track your saving progress and decide whether or not you need to give your contributions a little bit of a boost. 

The SSS pension is something you will likely receive in the future. It offers a lifetime cash benefit to retirees who have made at least 120 monthly contributions prior to retirement and a lump sum to those who have made less. Basically, if you were employed for ten years with employers who dutifully sent in your contributions, you’re guaranteed a lifetime monthly benefit. 

Apart from the government pension, you can opt to open retirement accounts of your choice. There are plenty of options, from personal savings accounts to Personal Equity Retirement Accounts (PERA) and insurance plans. Whichever you opt for, having a secondary source to fund your future lifestyle is extremely important in securing financial freedom. 

Online Loans: What Are They And What Are They Useful For? 

The online lending landscape is a little different from the traditional one. It’s essentially a fast lending market where smartphone users can apply for a loan, get it in less than a day, and pay it back in three or so months. The decision is often as easy as deciding which loan interest works best with your preferred repayment scheme. But the lightning-fast approach to transactions is a stark contrast to a retirement fund, which is meant to be a long-term financial goal. 

Online loans are extremely useful for immediate expenses, shopping, and emergencies, all of which don’t describe a retirement fund that you won’t be touching for the next few decades. As a result, it’s a no-brainer that boosting your retirement savings by borrowing from online loan apps is not the best idea. But here’s the catch–it only won’t work out if you’re thinking about directly taking a loan to make a retirement contribution. Online loans can be a huge asset to indirectly plump up your retirement fund, but it takes a little more planning and a little more effort on your end. 

Calculator Premium Photo

The Secret To Boosting Your Retirement Fund With Online Loans 

Putting the concept of retirement funds and online loans together boils down to one thing: passive income. Your lifetime assets don’t necessarily have to be completely liquidated cash. On that note, it isn’t advisable to only have cash for the rest of your life. You want to look into bigger, more sustainable assets that you can financially benefit from forever and won’t fall prey to inflation, such as real estate. But purchasing homes and condos isn’t cheap, so much so that some people live their entire lives without owning one. In order to afford these big-ticket purchases, you want to look into aggressively growing your income stream. 

Starting a business takes a lot of risks, but a small capital goes a long way with the right plan and motivation. You don’t have to aim sky-high–even micro-sized online businesses can churn large profits if you put the time and effort into it. Fast lending apps can help you get the immediate capital to start your venture, fill in gaps in funding, and help your business grow. 

From there, you can put part of your profits into easy investments such as mutual funds or learn to play the stock market. Keep up with the hustle while maintaining a blooming career, and over the years, you should see a positive spike in your finances, allowing you to think about real estate investments and much bigger retirement contributions. 

Final Thoughts

Retirement doesn’t necessarily have to mean daydreaming and reading books on a rocking chair all day. You can have the most exciting time of your life exploring the world, migrating to Europe, or fulfilling your childhood bucket list. Whether you choose to chase dreams or live the rest of your life peacefully, comfort and luxury cost money. In order to afford your retirement plans, it’s best to start hustling and saving now. Online lending is just one step in a lifetime process, but it’s worth it once you find success. 

There’s no telling what awaits in the future, so take charge of your life and take your retirement a little more seriously. And if your kids end up taking very good care of you in old age–then hey, you’ve got a stack of cash to spoil the grandkids! 

Fast, convenient loans, 24/7
pera247 is a mobile app that offers credit products for honest & hardworking Filipinos. Borrow up to ₱15,000!
Google Play Store button

pera247 Lending Corporation is a duly registered lending company under SEC (SEC Registration No.: CS201734339 with Certificate of Authority No.: 2582)