A recent study by Insular Life (InLife) has emphasised the financial challenges facing retirees in the Philippines, highlighting the importance of early planning to address healthcare costs, longer life expectancy, and limited social support.
The report, “Retire Without Worries: Your Roadmap to Living Life to the Fullest,” examined the preparedness of Filipinos for retirement and the financial risks they may face.
The study pointed to a growing senior population as a key challenge in retirement planning. In 2020, Filipinos aged 60 and above totalled 9.2 million, with projections indicating a 7% increase by 2032. This demographic shift could put further strain on financial and healthcare resources, particularly as retirees contend with chronic illnesses, cognitive decline, and insufficient savings.
The financial burden of healthcare remains a major concern. In 2023, household spending on healthcare reached P633.3 billion, representing 44.4% of the country’s total healthcare expenditures. WTW’s latest study expects healthcare expenses in the Philippines to increase by 18.3% in 2025, continuing the country’s trend of double-digit medical cost hikes.
The InLife study, which surveyed 505 respondents across various demographics, found that many Filipinos feel unprepared for retirement. While 52% expressed a desire for financial independence in their later years, only 30% reported confidence in their ability to sustain themselves financially after retiring.
A key factor affecting preparedness is financial literacy. The Philippines ranked among the bottom 30 of 144 countries in a 2022 Standard & Poor’s Global Ratings assessment, with only 25% of Filipino adults demonstrating adequate knowledge of financial concepts such as interest rates, inflation, and risk diversification.
Many Filipinos continue to depend on employer-provided retirement plans or government pensions, though these may not be sufficient. The study also identified cultural factors, such as strong familial ties, as reasons why some individuals delay or neglect retirement savings. Other barriers include a focus on immediate financial needs – such as housing and daily expenses – over long-term security.
The study found that 33% of respondents aim to retire between ages 56 and 60, while 22% – mostly younger generations – hope to retire as early as 46 to 50.
However, respondents estimated they would need P25,000 to P50,000 per month to maintain their current lifestyle. Given inflation projections and unexpected expenses, the study suggests that these amounts may be inadequate.
Despite recognising the importance of financial security, only 50% of surveyed Filipinos actively save for retirement. Among those who do not, common reasons include procrastination, mistrust in financial institutions, and a reliance on family support.
The findings align with broader trends in the Asia-Pacific region. A separate study by Sun Life Asia found that inflation and rising living costs are pushing many workers to delay retirement.
The “Retirement Reimagined” study surveyed individuals in China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, and Vietnam. It found that nearly 25% of retirees regretted not saving enough, with 66% citing insufficient savings as a concern.
The study also found that today’s employees anticipate retiring at 64 – five years later than the current retirees’ average age of 59. Among the reasons cited for delaying retirement were the need to save more (61%), the desire to remain active (49%), and rising expenses (43%).
Younger workers are particularly affected, with 46% delaying retirement due to concerns over inflation. Meanwhile, 26% of retirees reported that they had underestimated their financial needs, leading to lifestyle adjustments, including reducing expenses or liquidating investments.
To address these challenges, InLife introduced Retire Assure, a retirement-focused insurance product that provides a guaranteed monthly income starting at age 60 or 65, continuing until the policyholder reaches 100 years old.
Jose Eduardo O Ang, InLife’s senior vice president and chief product and innovation officer, explained that a good retirement product must have the following features:
“Retire Assure, a first for retirement solutions in the country, takes the guesswork out of retirement planning,” Ang said.
The policy allows flexible premium payments over five, 10, or up to age 59 or 64, with monthly payouts beginning at retirement age. Additional cash dividends may be included, helping policyholders keep up with rising expenses. The product also includes a life insurance component, providing a payout to beneficiaries if the insured passes away before reaching 100.
Application for the policy does not require medical evaluations, making it accessible regardless of health condition.
“As we face an evolving retirement landscape, it is important that we empower Filipinos with the proper financial education and a solution that can ensure a worry-free retirement. Retirement planning does not have to be a daunting exercise. InLife’s website has a retirement calculator that anyone may access, and of course, seasoned financial advisers to help them start planning for a worry-free retirement,” Ang said.
