The number of Filipinos expected to work beyond the typical retirement age is rising, according to a recent survey by life insurer Sun Life. The study, titled "Retirement Reimagined: Asia's Retirement Divide", found that 72% of respondents anticipate continuing work past age 65.
However, 71% said they require additional income to sustain daily living and long-term financial security, indicating that the majority of Filipinos work beyond retirement age not always by choice, but out of financial necessity.
Sun Life Philippines’ CEO and Country Head Benedict Sison said, "For those who are prepared, working longer can be a choice that offers flexibility and freedom. For others, it reflects financial pressure. Planning early and holistically is what determines which path people are on." The research categorises retirees into two groups: “Gold Star Planners,” who choose to work longer for engagement and fulfilment, and “Stalled Starters,” who delay retirement primarily due to financial constraints. Among Stalled Starters, half cite the need to save more as the main reason for postponing retirement, highlighting the pervasive influence of financial security on retirement decisions.
The survey also stressed the importance of professional financial guidance. Despite growing interest in generative AI tools, which saw usage rise from 3% to 11%, more Filipinos are turning to human advisers. Consultation with banks remained steady at 45%, while independent financial advisors saw a slight increase from 43% to 44%, reflecting a preference for expert, human-led advice when planning for retirement.
Financial security is a major factor in Filipinos’ optimism towards retirement. Among those looking forward to retirement, 67% cited financial security as a key reason, while those less optimistic frequently pointed to financial instability, with 44% concerned about their ability to support their families. Yet, 25% of Filipinos have no pre-retirement plans, and only 26% feel very confident about their preparations, underscoring the gap between retirement expectations and readiness.
Health also plays a crucial role in retirement outlook. Better-than-expected physical and mental health has led many to reconsider retirement timing, while poor health remains a driver of early retirement. "Health is a form of wealth in retirement, influencing both when people retire and the quality of life they enjoy," Mr Sison noted.