October 25, 2024 | 12:00am
MANILA, Philippines — Younger Filipinos are planning to delay their retirement amid the need to save more given the changing economic conditions in the country.
The latest survey conducted by insurance firm Sun Life revealed that the younger generations in the Philippines and in Asia as a whole are adjusting their expectations as their awareness of economic conditions increases.
Almost 60 percent of young Filipinos said there is a need to save more and the need to cover rising living expenses.
Roughly 15 percent also decided to postpone their retirement plans.
Sun Life Philippines chief client experience and marketing officer Carla Gonzalez-Chong said there is a growing awareness among Filipinos about the importance of financial management to achieve a comfortable retirement.
“However, it can be overwhelming for them to begin planning for it,” Gonzalez-Chong said.
In terms of current retirees, the survey showed that almost 50 percent of Filipinos expressed regret over past financial decisions with the biggest reasons being not saving enough followed by not investing wisely and retiring too early.
While most Filipinos save at least 10 percent of their income for retirement, Sun Life said a huge 37 percent do not.
“When asked about planned sources of income in retirement, the average expectation was for 20 percent of income to be drawn from cash savings, underscoring a potential missed opportunity to maximize retirement income through investments and ensure it keeps pace with inflation,” Sun Life said.
Further, roughly 21 percent of retirees in the Philippines had not planned their retirement expenses, resulting in being caught off guard by higher-than-expected costs such as general cost of living and healthcare expenses.
As such, many have been forced to cut on their spending and ask their families for support.
According to Sun Life, the retirement landscape in the region is undergoing a transformation driven by increased longevity and shifting societal norms.
“While independent financial security is seen as the foundation for a rewarding retirement, many people remain unprepared for the realities they face,” it said.
The Sun Life survey covered over 3,500 respondents across mainland China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore and Vietnam.
Be the first to comment