Put yourself at ease by protecting those you love
03 October 2017
Filipinos have a different concept of financial and retirement planning. Many are content with the principle of “isang kahig, isang tuka” or having just enough to tide you over until the next pay period. In short, Filipinos will earn just enough money for daily expenses.
Arguably, most of us are not able to save, prepare for retirement, or plan for financial security.
Go to the mall and observe how most Filipinos still prefer to pay in cash than through debit or credit cards. In other countries, you can survive a day without cash. But in the Philippines, cash is being used for most transactions and expenses. In fact, only two percent of households in the Philippines had credit cards according to a recent survey by the Bangko Sentral ng Pilipinas (BSP).
The same survey showed that 86% of Filipinos don’t have bank accounts. The reason is either they don’t have enough money to keep one or they don’t trust banks.
More than half of Filipinos get their income from wages and salary. Some are self-employed, while others rely on remittances from relatives working abroad or financial support from other households.
Earnings are mostly spent on food and beverage expenses in the household, as well as rent, transportation, education, leisure, health, and utilities.
At the end of the month, there’s almost nothing left, giving rise to the expression “dumaan lang sa palad ang pera.” Indeed, there’s much to note about the Filipino spending habits.
Seemingly, most Filipinos don’t have a concrete financial plan for their future retirement. BSP showed that retirement or insurance plans cover only one out of four Filipinos, and majority of it are purely work-based programs.
While people aspire for financial security, there remains a huge gap between how much they’re saving and how much they actually need to cover their years in retirement. For a lot of Filipinos, day-to-day expenses, major life events, and untoward incidents take priority over preparing for their retirement.
So, they push back saving for the future to accommodate expenses that arguably need more immediate attention. This can also be attributed to the “tsaka na lang” or the procrastination attitude that Filipinos are known for.
For a lot of Filipinos, it’s hard enough to pay for their basic needs, much more think about saving for the future. But, this is now always the case. Often, it’s the lack of discipline and the “bahala na” attitude that prevent Pinoys from saving and preparing for retirement.
Another factor to consider that contributes to the Filipino’s lack of savings and retirement planning is financial literacy. According to the S&P Global Financial Literacy survey, only 25% of Filipinos are financially literate. Simply put, only a fourth of Filipino adults are aware of the financial options available to them.
Saving for retirement all comes down to discipline, patience, and hard work. Put your money in smart investments that will provide you financial security through time.
It’s never too early or too late to prepare for your future and achieve financial success. Go to any BPI branch nationwide to consult with a Bancassurance Sales Executive who can offer trusted financial advice at no charge.
You can buy a life insurance at any BPI branch nationwide! Talk to a bancassurance sales executive now!
Get the power to protect yourself and your family with an affordable life insurance plan. Life Ready Plus is easy on the budget, but offers coverage of up to 30 times your yearly payment to support the financial needs of your loved ones.
The plan gives you fast access to coverage and benefits and can match your long-term financial goals when maintained within an appropriate term.
Critical Care Max will help you make more memories by providing financial aid during the early stages of a critical illness. This unit-linked life and health insurance plan offers assistance on your recovery. You can build a health fund that grows over time, depending on your chosen investment, to pay for other medical costs.
In addition, it comes with a hospital confinement benefit that will replace lost income due to hospitalization. This daily cash benefit may also come with optional benefits like cash payout for surgery-related expenses, allowance for consultation fees, and many others.
Let your loved ones enjoy the fruits of your labor even when you’re no longer around. Build Estate Plus is a unit-linked protection plan that will cover your estate taxes after your passing so that you can ease your family’s burden.
It doubles as an investment savings fund that builds Account Value as you pay. It is also integrated with AIA Vitality that provides additional upfront coverage of 20% to your policy and add-ons.
Be in good hands in times of sickness. Let Critical Care Plus, a unit-linked health and life insurance plan, take care of you with financial aid in case of a major illness, so you can focus on getting better and spending more time with your loved ones.
It even gives you more benefits for having good health through the AIA Vitality program that adds 20% upfront coverage and supplemental benefits on your policy.