Why government benefits are the cornerstone of a dignified retirement
A fulfilling retirement need not be a distant dream for most Filipinos; it is the government’s duty to make it a reality. This is not merely a matter of social welfare, but delivering a “national dividend” to those who have spent their lives building the economy.
The government can and should be the primary architect of retirement security by guaranteeing three critical benefits: expanded senior discounts, heavily subsidized hospitalization, and affordable medicine.
1. Honoring a lifetime of contribution: Filipino seniors are not a burden. They have contributed decades of labor, paid taxes, and raised the next generation of workers and entrepreneurs. To frame strengthened retirement benefits as a “handout” is to misunderstand this fundamental contract. It is a dividend—a return on the lifetime investment they have made in the country. When the government ensures their well-being, it is not an act of charity but a fulfillment of a social covenant.
2. Targeted government action as the most effective solution: Low wages, high medical costs, and inflation are too monumental for the average individual to overcome alone. Government action is not just helpful; it is the most efficient and equitable solution.
Expanded senior discounts is a shield against inflation. Current senior discounts on groceries, utilities, and transportation are vital, but they can be expanded and modernized. Including essential services, like internet connectivity (crucial for modern communication and telehealth) and a broader range of food items, would increase the purchasing power of fixed pensions and counteracts inflation.
Heavily subsidized hospitalization is the key to financial security. Out-of-pocket medical expenses have been identified as a primary savings-destroyer. The government must move beyond the current failing model and make a strategic decision to heavily subsidize hospitalization for seniors. By increasing PhilHealth reimbursements to cover a much larger percentage—ideally 90 to 100 percent for critical and common ailments of the elderly—the government can single-handedly prevent medical poverty.
Affordable medicine is a non-negotiable right. A robust government program to provide essential medicines for chronic conditions (e.g., hypertension, diabetes) at minimal or no cost would create predictable monthly expenses for seniors. This can be achieved through bulk procurement, strengthening generic drug policies, and expanding the coverage of programs like the Philippine Charity Sweepstakes Office. When health-care costs become predictable and minimal, long-term financial planning becomes possible.
3. Rethinking pensions and catalyzing personal savings: While reforming the Social Security System and Government Service Insurance System to provide livable pensions is a complex, long-term goal, the government can immediately improve lives through the benefits above. By securing the two largest retirement fears—health care and daily subsistence—the government creates the psychological and financial space for individuals to engage in the very financial planning that is currently so elusive. When people are not in a constant state of financial anxiety, they are more likely to seek out and invest in mutual funds or other instruments, as the Manulife survey recommends.
The reality of retirement in the Philippines is not an inevitability; it is a policy choice. To accept it is to concede defeat. By expanding senior discounts, heavily subsidizing hospitalization, and ensuring access to affordable medicine, the state can deliver a tangible dividend to its elders. This is not just about social justice; it is about completing the economic cycle—honoring those who built the nation and allowing them to retire not with anxiety, but with the dignity they have earned.
Manny Ilao,
manny.ilao@yahoo.com
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