Many Filipinos tend to overlook retirement planning, resulting in the uncertainties that come with aging. 

Traditionally, families have relied on children to financially support their aging parents, a cultural norm that is slowly changing as younger generations embrace financial independence. 

Despite this shift, the latest Insular Life (InLife) Retirement Readiness Index reveals that Filipinos scored only 47 out of 100 in overall preparedness, highlighting the urgent need for awareness and proactive retirement planning that goes beyond mere savings.

“If we don’t make [retirement] a firm, measurable goal, it’s going to be something you’ll ‘mañana’ away — and then panic when you’re actually at retirement,” said InLife chief product and innovation officer Jose Eduardo O. Ang on the Daily Tribune program Straight Talk.

A seasoned insurance professional, Ang explained that fear and a lack of knowledge remain significant barriers for many Pinoys. “Some 40 percent of the respondents said the leading reason they aren’t planning yet is fear,” he said, noting that they have no idea of where to begin when it comes to planning for retirement.

The survey found that Generation X scored highest in retirement readiness at 54 points, supported by greater financial stability and family obligations. Gen Z, meanwhile, ranked lowest at 36 points, reflecting limited engagement with long-term financial planning.

Ang also touched on the waning Filipino tradition of children supporting their parents during retirement, a mindset that younger generations are now rethinking. 

Rise of sandwich generation

“The ‘sandwich generation’ — those supporting both parents and children — know they’re squeezed. But many said they want to ‘end the cycle’ so their own kids won’t have to go through the same,” he noted.

The study further revealed that married individuals and parents are more likely to participate in pension programs, while informal workers and single Filipinos remain more financially vulnerable due to limited coverage. 

Ang emphasized that, with Filipinos now living longer — averaging 73 years and many reaching 85 — early financial preparation is increasingly vital, as longer lifespans could require around 40 percent more savings to sustain retirement needs.

He also warned that inflation continues to erode purchasing power over time. “If you don’t plan for inflation — 4–6 percent in recent years — your money loses value. P30,000 today will need to be P60,000 in 20 years to buy the same things,” he added.

Ang highlighted the gap between expectations and reality, noting that while most Filipinos aspire to a monthly retirement income of P50,000, the average SSS pension ranges from P15,000 to P20,000 — leaving a shortfall of around P30,000.

To close this gap, Ang urged younger Filipinos, particularly Gen Z, to start building financial literacy early. “We don’t need people in their 20s to necessarily start saving,” he said, adding that awareness of putting aside money early is key for younger generations to be ready.

InLife’s findings also showed that owning insurance, investing, and maintaining emergency savings significantly improve retirement readiness. “The earlier you start, the more it compounds. Financial literacy is key — talk about money at home, at work, and with your advisors,” Ang summarized.

“The worst thing to do is to procrastinate. Now, we all can’t necessarily begin saving immediately. But if we know where we want to get to, we can at least, over the next 5, 10, 15, or 20 years, gradually build our solution and portfolio so that they really enable our best lives. So, make sure we get educated, make your resources, and then make that long-term plan.”