High cost of living threatens Filipinos’ financial confidence

FILIPINOS are growing more concerned about their financial well-being due to higher cost of living, according to The Manufacturers Life Insurance Co. (Phils.), Inc. (Manulife Philippines).

The 2024 Manulife Asia Care Survey showed that while Filipinos want to be financially secure, increased cost of living will have impact on their confidence, the insurer said in a statement on Tuesday.

“Many Filipinos are grappling with a number of challenges that are impacting their ability to feel secure about their overall well-being within the next decade, including their financial confidence,” Manulife Philippines Chief Health and Products Officer Grace M. Mallabo said.

“It goes to show that a holistic approach to health and wellness — one that addresses physical and mental well-being, as well as financial preparedness — is very important.”

The survey, which included more than 1,000 respondents from the Philippines, showed that more Filipinos are ensuring they have financial safety nets.

The majority or 43% are depending on passive income, followed by building emergency savings (39%), finding ways to attain financial freedom after retirement (32%), having enough savings for healthcare needs (31%) and finding ways to be debt free (26%).

However, respondents are worried about rising healthcare costs (82%), threats of inflation (81%), economic slowdown and recession (78%), increasing interest rates (78%) and health trending down (73%).

“Women are more concerned about rising healthcare costs and inflation (85%) impacting their financial goals than men (80% and 78%, respectively),” Manulife Philippines said.

“Filipinos aged 50-60 have more concerns on the rising healthcare costs (86%) and health trending down (75%) than younger segments,” it added.

Manulife Philippines’ premium income stood at P15.54 billion in 2023. Its net income was at P1.899 billion. — AMCS