Only 2 of 10 Pinoys have enough emergency funds — study

MANILA, Philippines — Only two out of 10 Filipinos have emergency funds good for over three months, according to a study.

Commissioned by insurance firm EastWest Ageas, the PURPLE Report conducted by consumer intelligence company NielsenIQ showed that most Filipinos only have P50,000 in emergency funds.

With 30 percent of salaries going to basic household expenses, many Filipinos find it difficult to save for emergencies.

Despite this, Filipinos recognize the importance of being prepared.

The report showed that 52 percent are concerned about the health of their loved ones and 24 percent are worried about critical illnesses and high medical costs.

Preparing for emergencies by saving is often hampered by economic pressures like inflation and income instability.

However, the report showed that Filipinos become better at planning their finances as they grow older.

Some Filipinos 40 and above have more than three months’ worth of emergency funds, reflecting improved financial stability as they age.

To get through emergencies, Filipinos often use their personal savings, rely on support from families and have to borrow from informal channels.

EastWest Ageas said Filipinos need the extra support to overcome challenges.

“While Filipinos are practical, they should not have to forego financial planning to prioritize current needs,” EastWest Ageas said.

“Both should come hand-in-hand, partnered with the right tools and financial literacy programs, tailored insurance solutions and inclusive savings programs,” it said.