A look at how consumers are responding to the challenges of ensuring financial security reveals that while 83 percent of Filipino respondents believe they will achieve all their financial goals for the future, only 30 percent are confident that their current planning will be enough. At the same time, 53 percent say they will need to closely monitor and adjust investments from time to time in order to best meet their financial expectations.
Of those who are actively saving now (54%), the focus is on health, underlining their tendency to save now to fund their health care rather than later. In order to prepare for health-related expenses, respondents are using diversified strategies, employing a mix of local bank accounts, life insurance, government-initiated retirement schemes, provident fund and saving schemes, and investment-linked insurance policy.
Aside from health, Filipino consumers are also focused on saving now for unexpected household emergencies (51%). To fund unexpected household emergencies, Filipinos say that saving cash is the primary investment strategy that they use followed by saving plans, whole life insurance, company pension and government-initiated scheme, provident fund, savings or investment scheme.
Filipino consumers indicate that they would rather save in the future for other financial goals such as upgraded property purchase, first- and second-time property purchases, personal luxury, financial legacy, new businesses, their children’s futures, loss of job or income, higher education, and important milestones such as marriage, birth of a baby and retirement.
The gap between the plan to save in the future versus active saving suggests an opportunity to better educate consumers on the saving and investment strategies that will help them achieve a more secure financial future.