‘Millennials most financially literate generation in Philippines’

MANILA, Philippines — Generation Y, colloquially known as the millennials, are considered as the most financially literate generation of Filipinos, whose long-term financial goals are likely to be met.

Based on the maiden Financial Resilience Index of insurance firm Sun Life, Filipino millennials emerged as the most financially literate generation as they are in the sweet spot in life.

Sun Life said millennials have enough investable assets, less familial obligations than older groups and just the right amount of adventure and knowledge to build toward their financial future.

Roughly 80 percent of millennials are optimistic about their financial future compared to Gen Zs and Baby Boomers, both at 71 percent.

However, the caveat is that many millennials still lack a plan of action which is a key pillar of financial resilience.

Only 41 percent of them have a financial plan beyond a year which puts their goals at risk.

Sun Life Philippines chief client experience and market officer Carla Chong emphasized that millennials have more tools at their disposal when it comes to financial planning and are more likely to base their decisions on research.

“But not many have a long-term financial plan in place to meet their life goals. Having a well thought out plan needs to be a priority for those looking to secure their financial future, especially in today’s ever-changing and dynamic investment landscape,” Chong said.

Further, the index revealed confidence outstrips preparedness when it comes to long-term financial goals.

Filipinos also listed retirement and savings as their second highest financial priority but only 14 percent currently have a retirement or pension plan.

Over half of Filipino respondents also reported that emotion and trust played a key role for them in making financial decisions.

Financial institutions were the most trusted sources of financial information, followed by family and friends.

Surprisingly, social media is a common source of financial advice but only few or about 13 percent trust it.

The index examined the financial behaviors and beliefs of individuals in eight markets across the region and the barriers they face in building long-term financial security.

The study measured financial resilience against five key pillars namely confidence, behavior, planning, tools and resources.

It covered the markets of Indonesia, mainland China, Hong Kong, India, Malaysia, Singapore, the Philippines and Vietnam.