Seemingly, most Filipinos don’t have a concrete financial plan for their future retirement. BSP showed that retirement or insurance plans cover only one out of four Filipinos, and majority of it are purely work-based programs.
While people aspire for financial security, there remains a huge gap between how much they’re saving and how much they actually need to cover their years in retirement. For a lot of Filipinos, day-to-day expenses, major life events, and untoward incidents take priority over preparing for their retirement.
So, they push back saving for the future to accommodate expenses that arguably need more immediate attention. This can also be attributed to the “tsaka na lang” or the procrastination attitude that Filipinos are known for.
For a lot of Filipinos, it’s hard enough to pay for their basic needs, much more think about saving for the future. But, this is now always the case. Often, it’s the lack of discipline and the “bahala na” attitude that prevent Pinoys from saving and preparing for retirement.
Another factor to consider that contributes to the Filipino’s lack of savings and retirement planning is financial literacy. According to the S&P Global Financial Literacy survey, only 25% of Filipinos are financially literate. Simply put, only a fourth of Filipino adults are aware of the financial options available to them.