Protection
Put yourself at ease by protecting those you love
{{title}}
{{label}}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!