The recently released study highlighted a rising senior citizen population (aged 60 and above), which reached 9.2 million in 2020 and is projected to grow by 7 percent by 2032. With limited retirement support, increasing chronic illnesses, and cognitive decline impacting quality of life, financial preparedness has become more critical than ever, it said.
In 2023 alone, Filipino households covered P633.3 billion or 44.4 percent of the country’s total healthcare expenses of P1.44 trillion—a burden that could worsen without proper retirement planning.
The challenges of retirement
The “Retire Without Worries” study used a mixed-methods approach, combining online interviews and quantitative research surveys to provide a holistic view of the retirement landscape. It covered 505 respondents across various demographics, including Generation X, Millennials, and the Sandwich Generation—Filipinos supporting both their children and aging parents.
Despite experiencing relative financial stability, respondents expressed growing concerns about financial uncertainty in retirement. With Filipinos generally living longer lives, many fear outliving their savings, being unable to afford necessary healthcare, and experiencing a diminished quality of life.
Among surveyed adults, only 25 percent demonstrated adequate financial literacy, ranking the Philippines among the bottom 30 of 144 countries assessed by Standard and Poor’s in 2022.
Additionally, only 30 percent of respondents feel financially secure about retirement, while 52 percent aim for financial independence to avoid depending on their children. However, cultural reliance on family and the lack of adequate pensions and retirement benefits leave many unprepared.
Current priorities
Moreover, Filipinos prioritize immediate needs such as housing, healthcare and other short-term financial needs over long term health and financial security planning, leading to poor health outcomes with Filipinos usually forgoing preventive care and costly medical treatments. Of those surveyed, only 50 percent actively save for retirement.
Those who do not save cited reasons such as procrastination, mistrust in financial institutions, over-reliance on their current financial situation, and strong familial ties that encourage intergenerational support.
About 33 percent of respondents want to retire between 56 and 60, while 22 percent, mostly Gen Zs, dream of retiring between 46 and 50. To maintain their current lifestyle in retirement, respondents estimate they would need a monthly income of ₱25,000 to ₱50,000. However, given a projected 3 percent inflation rate in 2029 and the potential for unforeseen expenses, this amount may fall short.
Retirement security
To bridge this gap, InLife introduced “Retire Assure,” a retirement solution offering guaranteed monthly income from age 60 or 65 until 100 years old. This plan helps policyholders systematically save through flexible premium payments and provides cash payouts enhanced by dividends to counter inflation.
“Retirement planning should not be overwhelming. With InLife Retire Assure, Filipinos can secure their future with a structured savings approach,” said InLife senior vice president and chief product and innovation officer Jose Eduardo O. Ang.
InLife is also promoting financial education through its website’s retirement calculator and expert financial advisers, encouraging Filipinos to start planning today for a worry-free retirement. —Ed: CSN
