Investing in Your Whole Self: How Filipinos Can Save for a Better Future

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In the rigors of daily life, it can be easy to neglect the basics of physical and mental well-being. Between work, family responsibilities, and the rising costs of living, finding the time and resources to protect your financial well-being also often falls by the wayside.

A recent Manulife study shows that Filipinos surveyed are increasingly concerned about maintaining their physical, mental and financial well-being in years to come. The 2024 Manulife Asia Care Survey revealed that while Filipinos have high aspirations for the future, increased costs of living impact their confidence, especially when it comes to their finances.

As Filipinos navigate economic challenges today, most of them are already looking into planning for the future, including securing financial safety nets, such as having passive income (43%), building emergency savings (39%), and finding ways to attain financial freedom (32%) after retirement. However, these goals are perceived to be difficult to attain due to the rising healthcare costs (82%), threats of inflation (81%), and economic slowdown and recession (78%).

"Many Filipinos are grappling with a number of challenges that are impacting their ability to feel secure about their overall well-being within the next decade, including their financial confidence," said Grace Mallabo, Chief Health and Products Officer, Manulife Philippines. "It goes to show that a holistic approach to health and wellness—one that addresses physical and mental well-being, as well as financial preparedness—is very important."

One way to give you and your families peace of mind to focus on living your best lives at present is by preparing for the future through a reliable savings and life insurance plan. Whether it is ensuring that your family is cared for in the event of an unexpected health emergency, or building savings to help fund your dream retirement, your child’s education, or your passions, protection plans like Manulife’s Freedom can serve as a valuable safety net through life's ups and downs.

Freedom offers guaranteed cash payouts – 10% of your face amount – which customers can choose to receive every two years after full payment, or they can opt to leave it to accumulate until maturity. It also has a guaranteed one-time cash benefit, either after 20 years or at age 65; as well as guaranteed life insurance protection equivalent to 200% of the policy’s face amount.

China Bank and China Bank Savings customers can also enjoy the same guaranteed benefits with Manulife China Bank Life’s Assure Max.

More than the financial shield that comes with insurance, building an emergency fund, sticking to a budget, and making sound financial decisions are also valuable on your road to holistic wellness.

Achieving a more financially secure future may not always be easy, but it is a worthwhile journey that can provide long-term benefits. By taking proactive steps for your physical, mental, and financial well-being today, you can live a worry-free present and tomorrow.

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About Manulife Philippines

The Manufacturers Life Insurance Company opened its doors for business in the Philippines in 1907. Since then, Manulife’s Philippine Branch and later The Manufacturers Life Insurance Co. (Phils.), Inc. (Manulife Philippines) has grown to become one of the country’s leading life insurance companies. Manulife Philippines is a wholly owned domestic subsidiary of Manulife Financial Corporation, among the world’s largest life insurance companies by market capitalization. Learn more about Manulife Philippines by visiting their website www.manulife.com.ph and following them on Facebook (www.facebook.com/ManulifePH), Twitter (@ManulifePH), and Instagram (@manulifeph).

About Manulife China Bank Life

Manulife China Bank Life Assurance Corp. is a strategic alliance between Manulife Philippines and China Banking Corporation (China Bank). It provides a wide range of innovative insurance products and services to customers of China Bank as well as the bank’s thrift arm, China Bank Savings (CBS). MCBL aims to ensure that every client receives holistic life, health, and wealth solutions to address his or her individual needs.

Since opening in October 2007, the company has grown into a business of significance for both Manulife and China Bank. The two strengthened their partnership further in 2014 when China Bank raised its equity stake in MCBL to 40%. MCBL is setting its sights on its next growth phase and reaffirming its mission to be the biggest, most professional bancassurance company in the industry that delivers extraordinary customer experience.

About Manulife

Manulife Financial Corporation is a leading international financial services provider, helping people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we provide financial advice and insurance, operating as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States. Through Manulife Investment Management, the global brand for our Global Wealth and Asset Management segment, we serve individuals, institutions, and retirement plan members worldwide. At the end of 2023, we had more than 38,000 employees, over 98,000 agents, and thousands of distribution partners, serving over 35 million customers. We trade as ‘MFC’ on the Toronto, New York, and the Philippine stock exchanges, and under ‘945’ in Hong Kong. Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com.

Manulife Survey Shows Filipino Consumers See Managing Healthcare Costs as Critical for Financial Well-Being in Later Life

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A healthy lifestyle and good physical well-being are the essential elements for positive financial and mental well-being among consumers in the Philippines as they plan for longer lifespans, and lengthier and more comfortable retirements, according to new research by Manulife. Yet financial confidence among Filipinos is low amid concerns about inflation, particularly rising healthcare costs.

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• Survey of 1,050 consumers in the Philippines focuses on health and long-term savings for longer life spans

• Rising healthcare costs is the number one concern, while medical inflation perceptions are too high 

• Most people in the Philippines do not rely on their children to provide for them in old age

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Manulife’s new Asia Care Survey 2024 drew on responses from 1,050 consumers in the Philippines. It launched Manulife’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 to be 91, which is above the regional average, but the expected level to be 79, suggesting a lack of confidence about the future.

According to the Filipinos surveyed, the top five challenges impacting confidence in their future well-being are: rising healthcare costs (82%), inflation/rising costs of living (81%), economic slowdown/recession (78%), increasing interest rates (78%) and health trending down (73%). 

To help save and prepare for their envisioned future, including for greater longevity, retirement and unexpected medical needs, the Filipinos surveyed highlighted having a passive income after retirement (43%), having sufficient savings for a rainy day (39%), financial freedom in retirement (32%) and having enough savings for healthcare needs (31%) as their main financial goals.

“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,” said Rahul Hora, President and CEO, Manulife Philippines. “But there are ways to address these concerns so they 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.” 

Healthcare costs perceived to be too expensive

In the survey, 82% cited rising healthcare costs as a top threat– a percentage that rises to 86% among 50 to 60-year-olds. Their concerns are understandable given that 44.7% of health expenses in the Philippines are out-of-pocket, in total reaching US$9 billion in 2022. It is an amount that Manulife expects to reach US$13 billion by 2028 and account for 38% of their 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,” said Hora. “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.” 

The survey shows that over the past 12 months, the perception of the Filipinos surveyed on healthcare cost inflation was 32%, the highest in the region (average 23%) and around three times the actual rate. Most respondents (61%) are concerned about the rises in cost of prescriptions, while 59% of them are worried about hospitalization, and 45% about preventive healthcare. Curiously, elderly care (16%) is much lower.  

The potential illnesses that worry people in the Philippines the most are heart disease (46%), the leading cause of death in the country, diabetes (42%), stroke (34%) and cancer (31%).  With the broader concerns about their physical well-being and rising medical costs, 78% of the respondents agree that increasing insurance coverage and benefits for inflation is a crucial part of planning for my future financial well-being.  

The findings show a sizeable segment adopting a strategy of using less expensive healthcare (41%) services and medicines (53%), well above the regional average of 31% and 29% respectively. According to the survey, this would typically mean using government health services and generic drugs, rather than going private. Alongside that, about three quarters are exercising more or improving their diet.

Children no longer viewed as alternative to a pension

Across all the markets covered in Asia, 7 out of 10 of those surveyed said they feel health benefits and coverage from their employers are not enough. In the Philippines, it was a little higher at 76%. As things stand, 78% of the Filipinos surveyed feel a need to top up retirement and pension benefits they receive from their employers to boost their future financial well-being. In addition, 58% are looking to delay retirement because of their financial responsibility for their family.

Traditionally in Asia and elsewhere in the world, an alternative to insurance and a pension for old age would be having children. But that is not the case now in the Philippines where 58% of the Filipinos surveyed disagree that children are great investments because they provide support in old age. Only Japan had a higher rating at 70%. In the markets covered, half those surveyed said they do not plan to have kids. The average number of children wanted by Asians is 1.6. In the Philippines, the preferred number is 1.8.

“We encourage more Filipinos to consider ways to increase their health protection. At the same time, insurers have an important role in helping them do that, including changing perceptions on health costs and focusing on specific individual needs. There’s a need also for greater financial literacy,” said Hora. “Doing that will enable everyone to focus on ways to effectively address the challenges on health protection and long-term savings that exist.”

To help address the unique needs of Filipinos when it comes to their health, well-being and finances, Manulife Philippines offers a suite of innovative insurance and investment solutions that can help them financially prepare for the future, while ensuring life and health protection coverage in case of the unexpected. 

About the Manulife Asia Care Survey 2024 

In its fifth year running, the latest Manulife Asia Care Survey was conducted in January and February 2024 via online self-completed questionnaires in eight markets. A total of 8,400 individuals, evenly split between men and women, aged 25 to 60 years old were surveyed: mainland China (1,052), Hong Kong (1,052), Indonesia (1,063), Japan (1,000), Malaysia (1,038), Philippines (1,050), Singapore (1,038) and Vietnam (1,107).  Each of those surveyed either owns insurance or intends to buy insurance. For more info, visit www.manulife.com.ph 

Manulife Financial Corporation is a leading international financial services provider that helps people make their decisions easier and live better. With our global headquarters in Toronto, Canada, we provide financial advice and insurance, operating as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States. Through Manulife Investment Management, the global brand for our Global Wealth and Asset Management segment, we serve individuals, institutions, and retirement plan members worldwide. At the end of 2023, we had more than 38,000 employees, over 98,000 agents, and thousands of distribution partners, serving over 35 million customers. We trade as ‘MFC’ on the Toronto, New York, and the Philippine stock exchanges, and under ‘945’ in Hong Kong.

Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com.

Maxicare inks partnership with Manulife

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Maxicare Healthcare Corporation, the country’s leading healthcare provider, recently formed a 2-year partnership with Manulife Philippines, the largest insurance company in the country, to help make lives of Filipinos better through easy access to financial and health products. The partnership allows for cross-training of over 3,000 Maxicare agents who can now sell Manulife products and of over 9,000 Manulife Philippines financial advisors who can now include Maxicare healthcare products in their portfolio. 

Photo shows (L-R) Maxicare chief consumer officer Rodelee Uy, Manulife Philippines SVP and chief distribution officer Stephen Ong, Maxicare president and CEO Christian Argos, Manulife Philippines president and CEO Ryan Charland, and Maxicare chief operating officer Nelissa Badal.

For more information, visit www.maxicare.com.ph.

Philippines investors look far and wide for opportunities, but stay close to home for investment and advice – Manulife Survey

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·      Philippines investors favor developed economies over emerging Asia and show least home-market bias of any investors in Asia

·      Personal networks, bricks and mortar dominate approach to investing

·      Philippines investors remain most optimistic in Asia

Investors in the Philippines are among Asia's most optimistic and most outward-looking, given their willingness to invest outside the Philippines to gain returns, according to the latest Manulife Investor Sentiment Index* covering the second quarter of 2014.

Philippines investors reach across emerging Asia to mature markets

When asked which region they think is best to invest in, Philippines investors point to developed Asia, Australasia and North America over emerging markets, including emerging Asia and the Middle East and North Africa.

Fig. 1 – Philippines investors favour developed and distant markets over China and emerging Asia

Philippines investors seem less affected by home-market bias than any other investors in the survey. Given a selection of single markets, they show most enthusiasm for Canada (76 points) and Japan (73) above the Philippines itself (51), and show least for China (44), which most other Asia investors rank relatively higher.

When it comes to growth, Philippines investors are also most optimistic about Japan and Canada, with 19 percent believing that Japan’s economy will be the fastest growing in the next two years, followed by Canada, China and Australia. This contrasts markedly with the average Asia investor, 27 percent of whom expect China’s economy to grow fastest, followed by much lower expectations for Japan Australia and Canada.

Fig. 2 – Philippines investors’ views of which markets will grow fastest

contrasted markedly with investors elsewhere in Asia

"Our research suggests that Philippines investors’ preference for Japan is likely related to Japan’s first quarter GDP growth which came in at 6.7 percent on strong consumer demand ahead of the implementation of a new goods and services tax," said Aira Gaspar, CFA, Chief Investment Officer of Manulife Philippines.

“It's also interesting that Philippines investors seem so keen on Canada. We think there is a sound basis for this given that Canadian equities outperformed their developed market peers in the first quarter."

Philippines investors rely on friendly advice, ‘bricks and mortar’ approach to portfolios

Despite their international outlook, Philippines investors place their faith closer to home when it comes to making investment decisions, with 88 percent relying on or referring to family, friends or colleagues as a source of advice – the highest level in the region and well above the regional average of 58 percent. They are less dependent on industry staff, mass media or online sources of investment advice.

Philippines investors also have a very ‘bricks and mortar’ approach to portfolio composition, with 61 percent saying they own investment property (against the Asian average of 19 percent) and 75 percent owning their own home (against an Asian average of 50 percent). Cash and property together make up the bulk of their portfolios. Conversely, they have much lower ownership of stocks (15 percent versus the Asian average of 48 percent) and mutual funds (6 percent versus 23 percent) – even though their sentiment towards equities is the highest in Asia.

“Philippines investors rely largely on their own networks for their investment decisions" said Ryan Charland, CEO of Manulife Philippines. "While it is comforting to speak with family and friends for investment advice, investors would benefit from consulting investment professionals, who could help them build a sound and diversified portfolio that meets their medium to long-term financial goals.”

Philippines investors are Asia's most optimistic

In addition to their positive views about investing overseas, Philippines investors remain optimistic about investing at home with the sentiment index for domestic investment at 59, the highest in Asia. This optimism was spread across all asset classes in the survey, which all saw increases except cash. Fixed income saw the biggest increase, up 5 points to 50; followed by stocks, up 4 to 45. Mutual funds rose 1 point to 36. Property has taken the lead as the most favored asset class, with home property highest at 75, up 1 in the quarter, while investment property rose by 4 points to 74. Cash was the only asset class to see a decline, down 9 to 73, but still remains high.

”Filipino respondents were generally upbeat, despite weaker-than-expected first quarter 2014 GDP growth and uninspiring corporate earnings for the same period,” confirmed Ms. Gaspar. “We believe sentiment was boosted by a credit rating upgrade from Standard & Poor’s and an increase in government spending on much-needed infrastructure projects. The country’s resilient private consumption, rising investment cycle, recovering manufacturing industry and favorable consumer and business confidence bode well for economic activity and a positive earnings growth story. However, investors’ sentiment could turn sour if policy reforms aimed at addressing infrastructure deficiencies and fostering inclusive economic growth stall.”

For more findings and related information from the Manulife Investor Sentiment Index in Asia, please visit www.manulife-asia.com.