A recent survey by Manulife, known as the Asia Care Survey 2024, has shed light on the prevailing financial concerns among Filipinos, driven by worries over inflation and escalating healthcare expenses. The survey, which involved 1,050 Filipino respondents and introduced the MyFuture Readiness Index, revealed that a substantial 78% of participants feel the necessity to enhance their insurance coverage and benefits.
To cope with these challenges, many Filipinos are adopting pragmatic strategies such as utilizing government health services (41%) and opting for generic drugs (53%). Additionally, there’s a growing emphasis on improving diet and exercise habits to manage health-related costs effectively.
Despite efforts to economize, a significant 76% of respondents perceive employer-provided health benefits as inadequate. Consequently, 78% believe they must supplement their retirement and pension benefits, with 58% intending to postpone retirement due to familial financial obligations.
Interestingly, there’s a perceptible shift from conventional perspectives, as only 42% view children as a viable alternative to pension plans. This attitudinal change underscores evolving financial planning paradigms among Filipinos.
According to insights from Manulife’s research, maintaining a healthy lifestyle and robust physical well-being are pivotal to achieving financial and mental wellness in the Philippines. The survey highlights several critical challenges undermining confidence in future well-being, including soaring healthcare costs (82%), inflation and rising living expenses (81%), economic downturns (78%), climbing interest rates (78%), and deteriorating health conditions (73%).
Filipinos prioritize securing passive income post-retirement (43%), building sufficient emergency savings (39%), attaining financial independence during retirement (32%), and earmarking funds for healthcare needs (31%).
Commenting on these findings, Rahul Hora, President and CEO of Manulife Philippines, acknowledged widespread concerns about economic volatility, healthcare costs, and uncertainty dampening optimism among Filipinos regarding future well-being. He emphasized the pivotal role of professional financial advice in addressing these concerns, enabling individuals to evaluate their goals, mitigate risks, and select appropriate products offering robust health and life protection, as well as retirement and investment solutions.
Of particular concern is the escalating burden of healthcare expenses, identified by 82% of respondents as a foremost threat, surging to 86% among individuals aged 50 to 60. Out-of-pocket healthcare expenditures surged to $9 billion in 2022 and are projected to escalate to $13 billion by 2028. Notably, Filipinos perceive healthcare cost inflation at 32%, significantly higher than the actual rate of 23%.
Key health anxieties prevalent among respondents include heart disease (46%), diabetes (42%), stroke (34%), and cancer (31%).
The MyFuture Readiness Index gauges current and anticipated levels of physical, mental, and financial well-being on a scale of 1 to 100. While Filipinos aspire for a readiness level of 91, surpassing the regional average, their anticipated readiness stands at 79, underscoring a prevailing lack of confidence in future prospects.
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