Most Filipinos only have P50,000 for emergency funds — study
MANILA, Philippines — Most Filipinos only have P50,000 in emergency funds, according to a recent study, and just two from 10 Filipinos have emergency funds that can last over three months.
Insurance company EastWest Ageas commissioned a "Purple Report" study by consumer intelligence NielsenIQ about the spending capacities of 22 to 55-year-old Fiilipino adults in metropolitan cities.
The company's Insights Senior Manager Frances Marie Montealegre presented the report to members of the media, including Philstar.com at an event last November 4 in Taguig.
The report found that nearly all respondents, nine in 10, are focused on protecting their life, specifically their loved ones as 52% prioritize their family's health and 24% their children's education.
Eight in 10 Filipinos, meanwhile, see their wealth as an important matter, with 36% focused on income stability, 30% on inflation, and 22% on retirement preparedness.
Another significant matter was health by seven in 10 respondents: 24% for critical illness and 23% for large medical expenses.
In terms of driving budget choices, leading the allocation for monthly income were basic household expenses (30%), which means long-term financial planning takes a backseat.
Basic personal expenses (13%) and savings (13%) also topped the chart, whereas expenses for leisure and insurance both tied at 8%.
The study found that Filipinos can spare P50,000 for a medical emergency, which Montealegre pointed out some can only access that amount a month.
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That finding is alarming given global consulting firm Mercer Marsh's 2026 Health Trends' finding that the cost of healthcare in the Philippines is projected to increase by 16%, which is the highest in the Asian continent where the average is 12.5%.
Speaking of healthcare, eight out of 10 Filipinos fund such needs from personal savings or emegency funds, trumping options like the help of family or borrowing a loan of any kind.
Fortunately though the report showed that five in 10 Filipinos plan to priortize health and wellness in the next five years while even more, nine from 10, recognize life insurance as a critical safeguard in medical crises.
Montealegre said the results point to Filipinos being practical which is why they are investing later in life.
JP Yamsuan, a representative from Nielsen IQ, added that Filipinos are "conscious consumers" who aren't just investing but aren't holding back either.
EastWest chief executive officer Sjoerd Smeets shared that the insurance market will grow by 11% next year, though the gross domestic product might remain at 6%, pointing out insurance is still under-prenetated in the Philippines compared to other Southeast Asian countries.
Smeets advised improving financial literacy among the youth to learn more about saving while Yamsuan said insurance companies should listen to consumers, "They are ready and companies should adjust to what they are expecting."
Montealegre echoed the advice of EastWest chief distribution and marketing officer Greg Martin — who has lived in the Philippines for 25 years now — to do your own research when considering an insurance application.
Martin particularly said one should look into the company investments are being purchased and one's stage of life like if they're married or have kids, ending with the acknowledgement that it will remain an emotional descision so one should "listen to their heart."
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