FILIPINOS are becoming more worried about how long they will remain healthy, especially as they consider the costs of critical illnesses amid economic uncertainties, according to a study by Manulife.
While Filipinos on average expect to retire at 59 years, they expect to remain healthy for only three years post-retirement, the insurance company said in a statement, citing the results of its 2023 survey.
Filipino millennials aged 25 to 34 were the most pessimistic, thinking they would only remain healthy until they are 55, below the average perceived health longevity.
“Filipinos are realizing that personal health issues cannot be isolated from the financial implications of critical illness, along with wider economic uncertainties,” said Rahul Hora, president and chief executive officer at Manulife Philippines.
“While it is inevitable that our bodies change as we age and that the state of the global economy may be beyond our control, Filipinos can take proactive steps to strengthen their health and finances and have a more financially secure future.”
The financial risk posed by poor health lies in the cost of medical treatment, a significant concern for many Filipinos, Manulife said. Almost half or 49% of those surveyed said the expense of treatment was their No. 1 health concern.
Other concerns were loss of income or job because of illness (37%) and not knowing who will take care of them in case they got sick (26%). Almost all of those surveyed were worried about at least one illness, with heart disease, diabetes and cancer being their top three main fears.
The Manulife study also found that about a third of Filipinos thought they enjoy excellent physical and mental health.
With concerns about their health and health longevity, almost all Filipinos said they were taking actions to manage their well-being through exercise (65%), better diet (62%), regular body checks (52%) and closer self-monitoring (50%).
Despite their concerns about the future, especially about health, most of those surveyed (57%) felt confident about their finances, with 77% expecting their finances to improve in the coming 12 months.
Almost three-quarters expressed confidence in being able to achieve their financial goals (72%), such as saving for retirement (55%), paying for healthcare and medical treatment costs (43%) and emergencies (36%).
“This optimism, which may be reflective of a post-COVID euphoria and, to an extent, the mobility of the workforce, is tempered by the threat of inflation (75%), which emerged as the most prominent financial concern among Filipinos surveyed, more than in any of the other markets surveyed in the region,” Manulife said.
The other main threats cited were economic slowdown (56%) and rising healthcare costs (38%).
These concerns may have merit given that 81% of the respondents said cash and bank deposits were the primary ways they think they could achieve their goals.
“Cash is particularly exposed to inflation, which can see it quickly depreciate in real terms in a way that can be very costly to savers,” Mr. Hora said.
The Manulife study showed that 80% of Filipinos positively viewed retirement planning, well above the regional average (68%).
For many, it was their top personal finance goal (55%). But only 30% had such a plan in place. However, including those with plans already in place, 70% said they would have plans set up within three years.
Most are looking at relying on their cash savings or deposits (46%), potential inheritance from family members (18%), government or state subsidy (18%) or support from their children (17%).
“While these sources of financial support may be available to some, they are not guaranteed and can only go so far.” Mr. Hora said. “They may exact a heavy toll on relationships, as expectations and burdens placed on supporting parties, especially if they are family members or loved ones, are often causes of conflict.”
Filipinos were interested in insurance (80%), the highest in the region (68%), mainly because of the protection it offers against financial risk (54%).
However, Filipino insurance ownership of 59% is the lowest in the region (70%). In the coming 12 months, 87% of those surveyed said they intended to buy insurance, with health (36%), life (34%) and hospitalization (33%) insurance topping the list.
“It’s reassuring that Filipinos recognize the value and protection that insurance offers. After all, the insurance premiums will be far less than the cost of critical illness treatment,” Mr. Hora said.
“The best first step for those unsure how to purchase the right insurance plan for their needs and budget would be to talk to their trusted financial advisor, who would lay out and explain the various options without any obligation.”
The Manulife survey was conducted via online questionnaires in seven markets — mainland China, Hong Kong, Indonesia, Malaysia, Philippines, Singapore, and Vietnam.
A total of 7,224 people aged 25 to 60 years were surveyed in December 2022 and early January 2023. In the Philippines, 1,004 people were surveyed. Each person surveyed either owned insurance or intended to buy insurance. — Norman P. Aquino
