A study by BPI-Philam showed a financially stable retirement, with enough savings to sustain their lifestyle and address future needs is the top aspiration of Filipinos.
The study, conducted among 500 BPI clients in Metro Manila who were working adults aged 25 to 50 years old, from socioeconomic classes ABC1C2, also found that aside from retirement being their main long-term financial, other goals were owning a house (mid-term) and education of the children (short-term).
“Respondents preferred credit cards as the financial instrument they planned to acquire within the next 12 months,” said BPI-Philam CEO Surendra 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?”
In addition, accidents, critical illness and death were seen as major concerns or worries.
Menon added the 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.
With relevant, inclusive and sustainable economic growth programs by the government poised to make AmBisyon 2040 a reality, Menon underscored 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.
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.