Retirement should be what you want it to be–InLife
On average, only one out of four Filipinos (24 percent) across all age groups is prepared to retire, with the most believing that their clear and detailed retirement plans would bring optimal security, but were actually in the categories of “medium” and suboptimal readiness.
But in launching its first-ever retirement index, Insular Life Assurance Co. Ltd. (InLife). found that Filipinos attained a 47 out of 100 index score, which InLife said was in the “medium” but suboptimal readiness category.
InLife thus surveyed 1,000 respondents, aged 18 to 59, earning at least P22,000 to P220,000, from May 26 to June 9, and found that Filipinos are not paying enough attention to other factors in retirement readiness.
“Most Filipinos remain anxious and unprepared for retirement due to persistent financial and economic barriers despite growing awareness,” InLife said.
“The majority are still unprepared for retirement, with economic recovery not translating into future-oriented financial behaviors, especially among informal workers and lower-income groups,” it added.
The index measures retirement readiness through six factors: life stage, personal finances, health, pension program participation, retirement sentiment and social support.
The long view
Life stage emerged as the biggest factor in retirement readiness at 34 percent, showing that Filipinos generally become more prepared only as they grow older.
Generation X, or those born from 1965 to 1980, scored the highest with a 54 index score. Generation Z scored the lowest at 36. Still, according to InLife, Generation Z and young millennials have clear retirement plans that are yet to be translated into preparedness.
The insurance company emphasized that emotional and social factors are also drivers of retirement preparedness, which calls the need for a “holistic” approach to retirement planning.
For instance, women recorded a lower index than men (45 vs 49), showing that social support plays a bigger role in retirement planning behavior.
“The Retirement Index shows us that Filipinos need to see retirement in a new light. It’s not just a financial milestone. It’s an emotional, social, and even cultural journey,” according to InLife chief marketing officer Gae Martinez.
“If we only focus on money, we miss out on the other pillars that make retirement truly secure and meaningful,” she added.
