Filipinos Are Not Retirement-Ready, Reports Say
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?
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 general lack of awareness on how to plan for retirement.
A Smarter Way to Prepare for Retirement
The good news is 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 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 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 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, it comes closer and closer. That’s why today is the best time to start planning for it. Manulife FutureBoost Retirement is a powerful solution if you want to go beyond savings and pension for your retirement. You can optimize your retirement planning through the plan’s unique automatic fund management feature. This allows you to maximize your returns in the early years and minimize risks as you approach retirement age, thus, preparing your for a comfortable retirement.
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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