By Luisa Maria Jacinta C. Jocson, Reporter
FILIPINOS are concerned about their plans for retirement and are unable to actively prepare financially, a recent study conducted by The Insular Life Assurance Co., Ltd. (InLife) showed.
“The study showed that 53% of respondents were worried about having sufficient funds to sustain their retirement, considering inflation, foreseeing expenses,” InLife Chief Product and Innovation Officer Jose Eduardo O. Ang said on Thursday.
“They figured that they would all need about P25,000 to P50,000 (monthly income) to retire comfortably so that they can sustain their post-retirement lifestyle. And even at that amount, there is a lot of fear of this 53% of being unable to reach that.”
The survey covered 505 respondents nationwide across different age groups.
“Our research revealed that Filipinos have high aspirations for retirement. They want to live a retirement that is debt-free,” Mr. Ang said.
The senior citizen population or those aged 60 and above, is expected to grow by 7% by 2032. In 2020, the elderly population stood at 9.2 million.
“In 2023 alone, households bore P633.3 billion or 44.4% of the P1.44 trillion in healthcare spending,” the life insurer said.
InLife found that Filipinos “prioritize immediate needs such as housing, healthcare and other short-term financial needs over long term health and financial security planning.”
Only half of those surveyed said they actively save for their retirement, it added.
“Those who do not say procrastination, mistrust in financial institutions, over-reliance on current financial situation, and other cultural factors such as strong familial ties and intergenerational support keep them from actively saving for retirement,” Mr. Ang added.
The study showed that only 30% of respondents are confident about their financial preparedness for their retirement.
“Interestingly, younger generations aspire to retire earlier and break free from the traditional practice of relying on their children for financial support,” Mr. Ang said.
“They wanted to retire in their 40s, 50s — a lot earlier than what most would see as an age 60 or age 70 thing,” he added.
The study showed 33% of respondents are aiming to retire between the ages of 56 and 60.
“Gen Zs exhibit a stronger preference for early retirement, with 22% aiming to retire between the ages of 46 and 50 compared to only 14% of the general population.”
Meanwhile, 52% aim to have a steady retirement plan and achieve financial independence to avoid depending on their own children.
“They desire to break free from the generational cycle of dependence and instead, want to be financially independent in their old age. In the Philippines, there is cultural reliance on family, with many relying heavily on familial support to see them through retirement.”
For its part, InLife offers a retirement insurance product that provides guaranteed monthly cash payouts.
InLife Retire Assure gives policyholders guaranteed monthly income starting at age 60 up to 100.
The product has a simplified structure that sets aside premiums so they accumulate over time, InLife said.
The policy also offers flexible premium payments and payouts that can be paid in five or 10 years, or up to age 59 or 64.
“There is also a hassle-free application with its guaranteed issue offer. This means anyone who applies for an InLife Retire Assure plan does not need to undergo medical evaluation regardless of one’s health condition to be eligible for coverage,” it added.
