Filipinos Gain Short-Term Financial Confidence but Face Long-Term Risks

A new regional survey has found that while more Filipinos now feel financially secure in managing their day-to-day needs, many remain unprepared for long-term challenges such as retirement and unexpected income loss.

The Sun Life Asia Financial Resilience Index 2025, which surveyed 1,000 respondents in the Philippines along with consumers from five other Asian markets, showed a marked increase in financial confidence among Filipinos. Sixty-six percent said they now feel secure, up from 45% in the previous survey. Likewise, 69% expressed confidence in handling monthly finances, compared to 57% last year.

Despite these gains, the study revealed cracks in long-term preparedness. Only 64% of Filipinos believe they can meet their financial goals, down from 72% previously. About one in three admitted they would not be able to sustain themselves for more than three months if faced with illness or sudden income loss. Younger people and those in rural areas were found to be especially vulnerable due to lower savings and limited access to financial services.

Inflation has been a major driver of this behavior shift. Nearly all respondents reported that rising costs—particularly in food, energy, health, and transportation—have strained their budgets. As a result, Filipinos are prioritizing short-term needs such as daily budgeting (61%) and building emergency funds (45%), while postponing goals like home ownership and retirement savings.

The survey also highlighted changing attitudes toward financial guidance. While banks and family remain the most trusted sources of advice, younger and urban consumers are increasingly turning to social media and AI tools for financial education. Although most respondents rated their financial literacy as “fair” or better, gaps persist in rural communities. Encouragingly, 67% of those surveyed said they set aside at least 10% of their income for savings or investments, with 78% monitoring their investments monthly or more frequently.

Industry observers say these findings reflect both resilience and vulnerability. Filipinos are showing stronger financial discipline, but their ability to plan for the future remains constrained by economic pressures and uneven access to financial tools. Analysts suggest that policies and initiatives aimed at broadening financial literacy and affordability of professional advice will be key in helping households sustain their progress beyond short-term survival.