Only two of 10 Filipinos have emergency funds that can sustain them for more than three months, according to the newly released PURPLE Report commissioned by insurance firm EastWest Ageas and conducted by NielsenIQ.
This lack of financial preparedness leaves most Filipinos vulnerable to major health crises and unexpected financial shocks.
The study found that the typical Filipino has set aside only around P50,000 for emergencies, an amount far below what is needed to cope with serious health issues.
For middle-class Filipinos, this translates to little to no financial cushion when faced with costly medical bills, job loss, or other unexpected crises.
The report noted that treatment costs for ischemic heart disease, the country’s top cause of death, can run upwards of P690,000. The typical Filipino’s savings of P50,000 is nowhere near prepared to shoulder this cost, which can exceed an entire year’s income, it said.
Financial preparedness remains a struggle as about 30 percent of monthly income goes toward basic household expenses such as food, rent, utilities, transport and mortgage payments. As a result, long-term financial planning is often postponed in favor of day-to-day survival.
The report noted that 52 percent of those surveyed worry about the health of loved ones, while twenty-four percent are anxious about critical illnesses and the high cost of treatment. While government health benefits may cover some medical bills, the report emphasized that they do not cover the loss of income when a breadwinner falls ill.
In emergency situations, most Filipinos turn to a mix of personal savings, family support and informal loans, a pattern that reflects resilience but also chronic vulnerability.
The report noted that Filipinos tend to become more financially prepared as they grow older, with some aged 40 and above reporting more than three months’ worth of emergency funds, while younger adults admit to having less.
Even for older Filipinos, inflation and unstable income flows remain major roadblocks.
