According to a study among 500 BPI clients in Metro Manila who were working adults aged 25 to 50 years old, from socioeconomic classes ABC1C2, commissioned by the country's top bancassurance firm, the main aspiration of Filipinos is to become financially stable for retirement—having more than enough to sustain their lifestyle and address future needs. Aside from retirement being their main long-term financial goal, other goals were owning a house (mid-term) and education of the children (short-term).
Meanwhile, accidents, critical illness, and death were seen as major concerns or worries.
Results from the study cemented the findings of AmBisyon Natin 2040, the National Economic and Development Authority’s (NEDA) 25-year roadmap to help all Filipinos become middle-income earners enjoying a strongly rooted, comfortable, and secure life.
The best tools for long-term plans
With relevant, inclusive, and sustainable economic growth programs by the government poised to make AmBisyon 2040 a reality, BPI-Philam CEO Surendra Menon underlines prosperity must also start with the individual.
He noted that while Filipinos held these long-term aspirations, they have yet to fully utilize the financial tools that could well prepare them to achieve these goals.
Though savings accounts were common financial tools respondents acquired, insurance stands out as the product recommended by family and friends, as well as financial experts. However, they were wary on utilizing insurance and other investment opportunities as they had yet to fully understand its benefits and functions for their long-term plans, prioritizing instead immediate needs.
"Respondents preferred credit cards as the financial instrument they planned to acquire within the next 12 months," said Menon. "The thought process behind it is they borrow money for these big purchases with the intention of paying it out in the next years. However, uncertainties in the future might affect their income and emergencies can drain their savings. When that happens, how will they be able to pay off these debts?"
Conducted during the first two months of 2018, BPI-Philam's study drew from respondents their attitude towards insurance, financial institutions, as well as their plans and priorities for the future and aimed to understand what their financial challenges were in achieving those goals.
Menon stresses that while insurance protects the insured at the event of an accident or diagnosis of critical illness, it also protects their future income by giving them another pool of funds that can address these emergency situations, ensuring their savings go undented.
“The usual sentiment is they find insurance too expensive at the time they considered getting a plan, they said their priority for now was to make sure they and their families had enough for their day to day expenses like food and electricity at the home. But BPI-Philam offers plenty of comprehensive products tailored for the middle-income market which can address their needs while easily fitting into their monthly cashflow,” said Menon.
With the insights Filipinos can glean from the study, Menon is optimistic that Filipinos are now in a strategic position to achieve their goals for prosperity, by adequately investing in products and services ensuring them that the future they aspire for is not too far behind.
"Preparation need not be complicated or expensive. With the right plan using the best-suited tools for the job, Filipinos can easily take hold of a worry-free future they and their loved-ones can enjoy."
To know more about BPI-Philam, visit www.bpi-philam.com and www.facebook.com/BPIPhilamOfficial or any BPI and BPI Family Savings branch across the country.