One in five retirees in the Philippines has not planned his retirement expenses, while nearly half of retirees have expressed regret over their past financial decisions, according to new research by Sun Life Asia.
The research, titled Retirement Reimagined: facing the future with confidence, surveyed over 3,500 respondents across mainland China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore and Vietnam, about their aspirations and planning practices as they prepare for old age.
In a warning sign to future generations, the report said 21 percent of retirees in the country said they had not planned for their expenditures upon retirement.
This has led to 25 percent of retirees being caught off guard by costs being higher than expected.
These include general cost of living (77 percent) and healthcare expenses (46 percent).
In response, many have been forced to cut spending (62 percent) and ask their families for support (48 percent).
The research also showed approximately 42 percent of retirees regretted past financial decisions with the biggest reasons being not saving enough (73 percent), followed by not investing wisely (47 percent) and retiring too early (38 percent).
“The retirement landscape in Asia is undergoing a profound transformation, driven by increased longevity and shifting societal norms,” David Broom, Chief Client and Distribution Officer at Sun Life Asia said.
“Our research shows that while independent financial security is seen as the foundation for a rewarding retirement, many people remain unprepared for the realities they face. Early planning and disciplined saving are key to facing your golden years with confidence,” he added.
The report said younger respondents within Asia are increasingly aware of the looming challenge and are adjusting expectations accordingly.
Current workers anticipate retiring at an average age of 65, seven years later than the average age that current retirees exited the workforce.
Similarly, 14 percent of non-retirees actively have postponed their retirement plans, compared to only five percent of retirees who did the same, reflecting changing economic conditions and personal circumstances.
The primary reasons for delayed retirement include the need to save more (59 percent), the desire to remain physically and mentally active (59 percent) and the need to cover increased living expenses (46 percent).
Across all groups in Philippines, the number one aspiration for retirement is spending quality time with family and friends (48 percent), followed by the prospect of escaping the daily grind of work and relaxing (16 percent) and global travel (14 percent).
The greatest concerns associated with later years are health issues and physical decline (68 percent), factors that could put these dreams at risk.
