Economic strains including higher prices for everyday goods are pushing most Filipinos to focus on covering current household expenses rather than setting money aside for future milestones, according to the latest Purple Report from East West Ageas Life Insurance Corp.
The study finds that nine in every ten Filipinos now prioritize building short-term financial buffers to shield their families from climbing costs, insufficient emergency savings, and unstable income. While eight in ten still value securing resources for their family’s long-term well-being—including children’s education, retirement, and financial independence—immediate financial pressures are taking precedence. Six in ten also acknowledge the need to save specifically for potential medical emergencies, as gaps in health insurance leave many worried about covering hospital bills.
Surging consumer prices have narrowed financial flexibility across the country. In the second quarter of 2026 alone, 43 percent of Filipinos reported their financial situation had grown worse. More than half—56 percent—have trimmed their budgets to prioritize basic necessities, 52 percent are watching every expense closely, and 42 percent have cut back on non-essential spending entirely. The report notes these trends highlight the difficult balance Filipinos must strike between making ends meet today and preparing for what comes tomorrow.
There is one bright spot: insurance penetration rose from 1.79 percent to 1.96 percent in the last quarter, a modest but meaningful gain. “This shows the industry’s work to improve financial empowerment is starting to bear fruit,” said Sjoerd Smeets, President and CEO of East West Ageas Life and also President of the Philippine Life Insurance Association. “To build on this progress, we need stronger cooperation between government and private industry on financial literacy efforts that help Filipinos understand insurance as a dependable tool to build long-term security.”
For financial institutions, these patterns signal strong demand for flexible, accessible products that address both immediate budgeting needs and long-term protection. Policymakers, meanwhile, face the clear challenge of supporting households through ongoing price pressures while expanding financial literacy and safety nets that let Filipinos plan beyond day-to-day survival.
