Financial confidence among Filipinos is low, particularly as this concerns rising healthcare costs and inflation, a new research by Manulife shows.
Manulife’s new Asia Care Survey drew on responses from 1,050 consumers making up the insurer’s MyFuture Readiness Index, which measures how consumers view their current and future physical, mental and financial well-being.
On a scale of 1 to 100, the index shows their desired readiness level at 91, which is above the regional average. The expected level, however, was 79, suggesting a lack of confidence about the future.
According to the survey, the top five challenges impacting confidence in their future well-being were rising healthcare costs at 82 percent, inflation/rising costs of living at 81 percent, economic slowdown/recession at 78 percent, increasing interest rates at 78 percent and health trending down at 73 percent.
“The survey reveals a lot of anxiety around economic volatility, healthcare-related expenses and uncertainty, which dampens the optimism of many Filipinos in achieving high-quality well-being in the future.”
Rahul Hora, president and CEO, Manulife Philippines
But according to Hora, there are ways to address these concerns so Filipinos are future-proofed.
“Significant of these is the value of financial advice and guidance that can help them assess and bring their goals closer to fruition, mitigate risks and find the right products that provide stronger health and life protection, as well as investment and retirement solutions,” Hora said.
In the survey, 82 percent cited rising healthcare costs as a top threat. The percentage rises to 86 percent among 50 to 60-year-olds.
Manulife said their concerns are understandable given that 44.7 percent of health expenses in the Philippines are out-of-pocket, in total reaching USD9 billion in 2022.
This is an amount that Manulife projects to reach USD13 billion by 2028 equal to a harsh 38 percent of overall medical expenses.
“We see in the Philippines a realization of longer life expectancy and people rightly want to enjoy good health for a longer time. Healthcare costs trump inflation as their main concern for the future, with women being, in general, more concerned than men,” Hora said.
“To navigate this, there is a need for effective financial planning. It is fair to expect medical costs to rise faster than inflation given aging populations and increased pressure on healthcare services, but our survey suggests that perceptions on the extent of such rises are well above actuality,” he said.
