Filipinos are not retirement-ready, reports say
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For many, retirement is a time for fun, relaxation, and travel. However, a lot of Filipinos in their golden years don’t get to fully enjoy the fruits of their labor. Many still drag themselves to work to cover daily needs. This is a common scenario when people only have enough to spend on immediate needs, as their future goals are often pushed to the side.
According to recent reports, only 29% of Filipino adults have a savings account. The Philippines, in fact, has one of the lowest savings rates in Southeast Asia. Another survey showed that 46% of Filipinos rely on cash savings or deposits for retirement, but how far can your money take you?3, 4
Big picture reality reveals that 80% of Filipinos are not ready for retirement. A few reasons that keep them from being prepared include lack of money, a YOLO attitude, “Bahala na” mentality, a preconceived notion that they can still work after retirement, and a general lack of awareness of how to plan for retirement.1, 2
Why Filipinos need to start planning for retirement now
Many Filipinos delay retirement planning, often prioritizing immediate family needs, daily expenses, or short-term goals over long-term security. While understandable, this delay can have a lasting impact on future financial stability. Starting late means fewer years to build savings, limited time for investments to grow, and less flexibility to adjust when unexpected costs arise. This makes it harder to prepare for retirement without relying heavily on others.
Beginning early allows individuals to save more gradually, benefit from long-term growth, and make informed adjustments along the way. Even modest, consistent contributions can add up over time. Planning ahead helps Filipinos prepare for retirement with greater confidence and work toward a more comfortable, independent post-retirement life.
Retirement planning tips for Filipinos
Knowing how to prepare for retirement becomes easier when the steps feel realistic and relevant to everyday Filipino life. The goal is progress, not perfection.
- Start with a simple checklist
A preparing for retirement checklist can include reviewing income sources, setting a target retirement age, estimating basic living costs, and building an emergency fund. This creates clarity without feeling overwhelming.
- Save consistently, even in small amounts
Regular contributions matter more than large, irregular savings. Increase contributions when income grows or expenses ease.
- Balance family priorities with personal retirement needs
Supporting family is important, but long-term independence also protects loved ones from future financial pressure.
- Use a mix of savings, investments, and protection
Combining savings plans, diversified investments, and insurance helps manage risks and supports long-term goals.
- Review and adjust your plan over time
Life changes. Regular check-ins help ensure your strategy remains aligned with your goals and responsibilities.
For many Filipinos, the best way to prepare for retirement is to start early, stay consistent, and make informed adjustments along the way.
How can I build wealth for retirement?
The good news is that more and more people now recognize the importance of planning for retirement. But how much would be considered enough? Having a savings account and pension plan is good as a baseline, but factors like inflation must be considered. So, your retirement plan should go well beyond that.
A smarter option is to get insurance with an investment. The key benefits of an investment-linked insurance for retirement include:
1. Wealth Accumulation
Confidently reach your retirement goals by going beyond personal savings and tapping into investment growth opportunities. Many types of insurance with investment allow you to allocate a portion of your premiums to various investment funds. This way, you can participate in the local and global financial markets' growth potential, providing an opportunity to build wealth over the long term. Ultimately, this helps you acquire wealth while protecting your retirement nest egg from inflation.
2. Protection for You and Your Family
State-mandated pension schemes and savings accounts don’t protect you and your family enough from the unforeseen burdens of critical illnesses, accidents, and death. An investment-linked insurance policy does! While you accumulate wealth, you and your family are also protected from the financial impact of these uncertainties.
3. Flexibility
An investment-linked insurance gives you the option to adjust your investment allocations based on changing market conditions or personal financial goals. Additionally, depending on your plan, you may be able to withdraw a lump sum or choose to have a steady income stream every year.
Start building your retirement plan as early as now with Manulife FutureBoost retirement
Your retirement may seem like decades away, but each day brings it closer. That’s why starting your retirement planning now can make a meaningful difference to your long-term financial security. Planning early gives you more time to build savings, manage risks, and adjust as your needs change. Manulife FutureBoost Retirement offers an option for those who want to go beyond basic savings and pension plans. With its automatic fund management feature, the plan is designed to help maximize growth in the earlier years while gradually reducing risk as you near retirement, supporting a more stable and comfortable retirement journey.
Frequently asked questions
1. Is it too late to start planning for retirement if I’m in my 30s or 40s?
It’s not too late. Starting in your 30s or 40s still gives you time to save consistently, adjust strategies, and build toward retirement goals.
2. What is the best retirement plan for Filipinos?
There is no single best plan for everyone. The right option depends on income, goals, risk tolerance, and time horizon. Reviewing options with a certified financial advisor can help identify what fits your needs.
3. How does inflation affect my retirement savings?
Inflation reduces purchasing power over time, meaning your money may buy less in the future. Planning for growth and reviewing your financial strategy regularly can help manage this risk.
4. How can I ensure my family is financially protected after I retire?
Combining retirement savings with appropriate insurance, emergency funds, and clear financial planning helps protect your family and reduce reliance on others later in life.
Key takeaways
- Many Filipinos remain underprepared for retirement, with savings often falling short of long-term needs.
- Delayed planning and competing financial priorities make it harder to build sufficient retirement funds.
- Relying on a single income source or savings option can increase financial risk later in life.
- Starting early, even with small and regular contributions, can significantly improve retirement readiness.
- Combining savings, investments, and protection tools helps build a more resilient retirement plan.
References:
- https://www.pna.gov.ph/opinion/pieces/407-what-keeps-filipinos-from-preparing-for-the-future-
- https://business.inquirer.net/310472/80-of-retiring-pinoys-not-financially-prepared
- Filipinos view the challenge of health longevity with growing concern – Manulife survey shows
- Finances and Retirement (manulife.com.ph)
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