Real talk: Filipinos have a retirement index of 47 out of 100.
This is far from ideal because retirement is more than just having enough money to last through one’s senior years. It is a composite of six interrelated factors that determine one’s retirement readiness: life stage, personal finances, health, pension program participation, retirement sentiment, and social support.
This was the key insight from the first-ever Retirement Index developed by largest Filipino life insurer InLife, as a holistic measure of retirement preparedness. To come up with the Index, InLife used a multi-method research framework that included combined research, expert interviews with economists and psychologists, and survey data from an online quantitative survey of 1,000 respondents aged 18 to 59 years old. Scores were calibrated on a 0–100 scale for easy interpretation.
“The Retirement Index shows us that Filipinos need to see retirement in a new light. It’s not just a financial milestone. It’s an emotional, social, and even cultural journey,” said InLife Chief Marketing Officer Gae L. Martinez. “If we only focus on money, we miss out on the other pillars that make retirement truly secure and meaningful.”
Among the key findings from the InLife Retirement Index survey are:
- Generation X scored the highest at 54, owing to their life stage. At this time, they are more mature, have more stable income, and are breadwinners, or married with dependents, which naturally require increased knowledge of financial planning. Younger, single, or childless individuals show significantly lower retirement preparedness with Gen Z scoring the lowest at 36. However, Gen Z, together with young millennials reported having clear plans about their future though they have yet to translate these into concrete retirement plans.
- Insurance, investment ownership, and emergency preparedness boost retirement readiness. InLife policyholders scored significantly higher at 62 compared to non-policyholders who scored 42. Investment-oriented segments such as millennials, married individuals, and those with small families showed greater retirement preparedness as they built passive income streams, demonstrating long-term financial planning. In contrast, younger generations and single individuals who also support other family members face greater financial strain, and as a result, lower retirement preparedness.
- Filipinos who are retirement ready are also more prepared for health emergencies. With chronic health conditions becoming rampant as one ages, it is important to have a separate fund for health concerns.
- Pension program coverage is concentrated among married individuals and parents, leaving informal workers and singles vulnerable. With more Filipinos in the informal work sector, such as independent contractors, participation in state-sponsored pension plans such as SSS and GSIS is lower. Therefore, they are exposed to retirement and health risks in the future.
- Filipinos who scored high on the retirement index had strong social support underscoring the emotional and social dimensions that drive engagement in retirement planning.
- Women averaged 45 compared to men’s 49, highlighting gender disparity when it comes to retirement, with more men having full-time formal employment and investments.
Martinez said that the Index provides Filipinos with a guide for action. “These data clearly indicate that retirement readiness requires conversation. Families, communities, and institutions must normalize talking about retirement. At InLife, that is what we are doing because we want our fellow Filipinos to be aware, more confident, and prepared so they can retire without worries.”
To help Filipinos plan their retirement, InLife offers Retire Assure, the first true retirement insurance product in the country. Retire Assure provides a guaranteed monthly income from age 60 or 65, until age 100. It is payable in five-, ten years, or until the age of 59 or 64, depending on one’s preference. It is further enhanced by cash dividends that have the potential to increase over the years to keep up with the increases in living expenses.
Retire Assure 2, its 2-pay variant, is recommended for professionals who are transitioning to senior positions in their careers, and who want a lasting security instead of market-driven uncertainty. It is for individuals aged 48 to 73 years old and is payable in two annual installments. The insured will start receiving a monthly income until age 100, after the second premium is paid. Upon death, the insured’s beneficiaries receive the higher of either 110% of premiums paid (less payouts already received) or the guaranteed cash value, whichever is greater.
Earlier this year, InLife also released its research on retirement called “Retire Without Worries: Your Roadmap to Living Life to the Fullest.” The paper underscored the urgent need for retirement planning in light of rising healthcare costs, longer life expectancy, and changing family structures that make older Filipinos more financially vulnerable. It emphasized the importance of deliberate planning and adequate support systems amid the risk of outliving one’s savings.
“InLife, at 115 years old, continues to find solutions to Filipinos’ most pressing concerns. We are committed to empowering our fellowmen across generations so they can enjoy A Lifetime for Good,” said Martinez.
Be more retirement-ready. Try InLife’s Retirement Index Calculator at https://www.inlife.com.ph/retire-assure/retirement-readiness-index. To know more about InLife Retire Assure, visit https://www.inlife.com.ph/retire-assure. To read InLife’s Retirement white paper, visit https://bit.ly/RetireWithoutWorries.