CEBU, Philippines - Financial solutions provider, Sun Life of Canada (Philippines), Inc. intensifies its campaign in promoting “financial wellness” in the Philippines by tapping the mainstream market to improve financial literacy.
Sun Life of Canada (Philippines) Inc., recently introduced “It’s Time” campaign, a financial literacy program that will change the mindset of Filipinos when it comes to saving and investing for the future.
It is a program that would encourage Filipinos to prioritize the urgency when it comes to financial future.
According to Carla Gonzales, product marketing manager the company’s “It’s Time” challenge is part of Sun Life Canada’s series of advocacies starting this year, to elevate Filipino market’s literacy in financial aspect.
Despite other financial institutions’ campaign to improve financial literacy for the Filipino market, Gonzales said “financial literacy in the Philippines [remains] quite low.”
Recently, the company held a series of financial literary campaign called “Its Time” in major malls over the country to drum up awareness of the importance of personal investment, savings, and insurance.
The mall drive was aimed at stirring attention to empower Filipinos in adopting “financial wellness”, especially those that are still in the younger age, and those that are in the middle part of their lives.
Known for its high-end brand name, Sun Life of Canada is now getting to the grassroots to have a good grasp in managing finances, especially preparing for the future.
A research conducted by Sun Life Canada Nine showed that out of 10 Filipinos have nothing to bequeath to their loved ones when they pass away, thus leaving many young dependents with an uncertain future.
Sun Life's latest study on lifestyle, attitudes and relationships (SOLAR) also showed that 45 percent of senior Filipino citizens—those aged 65 and above—become a burden to relatives after retirement while 30 percent are dependent on charity and 22 percent continue to work instead of enjoying retirement. Only two percent of retired
Filipinos could be considered financially dependent. The latest SOLAR study, which was based on a survey of 1,200 respondents from various income segments last year, showed that health ranks among the top concerns for Filipinos.
But while 76 percent of Filipinos are concerned about paying for health treatment, an overwhelming 85 percent have to dip into their savings when they get sick instead of depending on health insurance.
Insurance penetration also remains low in the country even in the presumably financially savvy "AB" income segment (45 percent).
The penetration rate is much lower for the "C" market: 30 percent for the C1 segment (defined by Sun Life as a household with a combined monthly income of between P50,000 and P100,000) and 17 percent for C2 segment (defined as having a combined household income of between P25,000 but less than P50,000 per month).
Based on the study, the average Filipino earning between P30,000 and P50,000 each month can afford to spare between P300 and P500 each month.
Gonzales hopes that the new generation Filipinos can start to put into consideration “financial wellness” as one of their top priorities.