Money & Power

Most Filipinos Don't Save Enough for Retirement

They expect to work even after retirement, too.
IMAGE COURTESY OF WIKIPEDIA
Comments

In the film The Bucket List, Morgan Freeman’s and Jack Nicholson’s characters spent the last few months of their lives as terminally ill patients traveling the world. They did everything from skydiving in Dubai to climbing the Mount Everest in Nepal, anything that will make them savor their remaining time on Earth. Indeed, retirement, or life after the nine-to-five routine, is often depicted as the blissful and unburdened life in movies.

But that’s hardly the case in real life.


ADVERTISEMENT - CONTINUE READING BELOW

With retirement seemingly still a lifetime away, most Filipinos end up not saving enough for this phase in their lives. In fact, according to the latest Manulife Investor Sentiment Index (MISI), Filipinos keep the least amount of personal savings for retirement in Asia, only setting aside 3.6 months’ worth of income for retirement. This is way below the regional average of 2.9 years.

This money-saving habit may be due to the low expectations of Filipinos of “sufficient retirement savings.” According to MISI, Filipinos have the least expected amount of retirement savings in Asia, at only 2.1 years’ worth of personal income. That is a big drop from the regional average of 12 years.

To be sure, MISI only surveyed 4,011 participants across eight markets in Asia, which includes Indonesia, Singapore, Taiwan, Malaysia, Thailand, Hong Kong, China, and the Philippines. The survey participants are aged 25 and above and are mostly part of the middle class to affluent markets.

ADVERTISEMENT - CONTINUE READING BELOW

Still, MISI’s findings are telling. The index also revealed that eight out of 10 Filipinos said they are looking forward to working full- or part-time even after retirement. That is a complete departure from how popular culture has depicted retirement. The top reasons for this choice were so they can remain “busy and occupied” and for their “physical and mental health.”

“The rise of digital-enabled jobs could provide new opportunities for Filipinos to continue working after retirement. According to MISI, there is strong interest among those 50 years old and above to pursue digital work, either on a full-time or part-time basis,” the report read.

MISI noted how online-based freelance work and jobs in the e-commerce industry are some of the top choices of those working in the digital industry.

While the index did not correlate the findings on Filipinos’ retirement savings habits and their choice to work after retirement, it may be safe to say that most are more than ready to never stop working.

ADVERTISEMENT - CONTINUE READING BELOW

This story originally appeared on Esquiremag.ph.

* Minor edits have been made by the Townandcountry.ph editors.

Comments
About The Author
Elyssa Christine Lopez for Esquiremag.ph
View Other Articles From Elyssa Christine Lopez for Esquiremag.ph
Comments
Latest Stories
 
Share
 
Share
He's currently eleventh in line to the throne.
 
Share
In his new book, Michael Shnayerson chronicles the art market's big personalities-and even bigger checks.
 
Share
Coco's Matthew Aldrich will head up the project, which will include both films and TV series.
 
Share
 
Share
Essentials you'll need on your next trip to the Land of the Rising Sun.
 
Share
Alain Verzeroli breaks out on his own with the help of power developer Aby Rosen.
 
Share
The actress let it slip that last year's much-loved comedy, which also starred Diane Keaton, Jane Fonda, and Candice Bergen, is getting a second chapter.
 
Share
 
Share
 
Share
The daughter of taipan Lucio Tan takes her places as OIC of the national airline.
Load More Articles
CONNECT WITH US