MATHIEU STERN-UNSPLASH

THE PHILIPPINES had the second-lowest score out of eight markets in Asia in an index that aims to measure financial confidence and preparedness.

Prudential plc’s inaugural Financial Wellbeing Index showed that the country scored 55 out of 100.

The index was based on a survey of 7,707 adults aged 18-60 in the Philippines, Hong Kong, Indonesia, Malaysia, Singapore, Taiwan, Thailand, and Vietnam.

It measures financial well-being across four dimensions, namely, present and future financial security, and present and future freedom of choice — showing a snapshot of how people are managing their finances today and how ready they feel for the future.

Prudential said the survey “combines attitudes, behaviors and expectations into a single score to indicate level of well-being.”

Present financial security means having control over day-to-day, month-to-month finances, while future financial security means having the capacity to absorb a financial shock or large, unexpected expenses, it said.

Meanwhile, present freedom of choice aims to measure having the financial freedom to make choices that allow enjoyment of life, while future freedom of choice refers to being on track to meet financial goals.

The Philippines’ index score was below the 58.9 overall score for the eight markets included in the survey, and only beat Hong Kong’s 52.5.

Meanwhile, Vietnam had the highest score at 65.1, followed by Indonesia at 62, Thailand at 60.4, Malaysia at 58.1, Taiwan at 57.8, and Singapore at 57.7.

The study also found that access to financial solutions in the region remains limited, with only 18% strongly agreeing that they have access to the services and products they need.

“In markets with higher financial well-being, people feel more equipped and supported by access to financial knowledge, services and planning that help them move forward,” Prudential said.

In the Philippines, 18% of respondents said strongly felt they had financial access, in line with the regional average.

Indonesia had the highest rate of confidence for financial access at 28%, while Hong Kong has the lowest at 8%.

The study also showed that financial confidence and preparedness are highest among younger adults in Asia and decrease in later life stages, Prudential said, as respondents aged 18-35 score 59.8 out of 100 in financial well-being, compared with 58.2 for those between the ages of 36-49 and 57.7 among those aged 50-60.

“While those aged 18-35 express stronger optimism towards their financial future, concerns around job stability and family health remain prominent,” Prudential said. “In contrast, respondents aged 50-60 are most concerned about their physical health deteriorating and rising costs of necessities such as food, clothing, power and transport, reflecting the financial and health‑related pressures that tend to intensify later in life.”

It added that there is a disconnect between day-to-day stability and long-term financial freedom. The region’s overall present security score was at 61.7, which means they feel relatively financial secure in the present, but their future freedom score was at just 55.2, showing lower confidence. Prudential said this suggests that many are getting by financially in the short term but do not feel equipped to absorb potential future shocks.

Meanwhile, only 34% of respondents said they do not need to keep earning in their retirement years, while 47% said they feel secure when thinking about their financial future, and just 45% believe they could handle a major unexpected expense.

“This gap continues to widen across later life stages, highlighting the importance of early financial preparation, ongoing education and long-term planning in achieving financial freedom and sustained well-being.” — AMCS

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