OFWs need 18 years to save enough, return to family

MANILA, Philippines - It will take an average overseas Filipino worker (OFW) an estimated 18.11 years, or 217 months, to accumulate P3 million in savings before permanently returning to his or her family.

Based on a study commissioned by the Philippine American Life and General Insurance Co. (Philam Life), the average OFW saves roughly P13,800 a month. The savings come from P9,658 held by the OFW while P4,142 is reportedly saved by his beneficiaries in the Philippines.

Thus, to accumulate P3 million in savings, the OFW has to be separated from family for a little over 18 years.

The good news is that the average OFW has a higher savings and investment awareness than Filipinos “at home.”

Philam Life chief marketing officer Jaime Jose Javier Jr. said that 97 percent of OFWs still prefer bank savings account. Ironically, the study also indicates that the same are aware of personal life insurance, non-life insurance, pre-need plans and other investment portfolios.

Javier said increasing yields of savings and investments several fold can shorten the number of years OFWs spend away from their families.

Approximately 10 percent of Philam Life’s total premium income come from its OFW portfolio.

“Fifteen percent of our new business premiums this year comes from OFWs,” the Philam Life marketing officer revealed.

The profile of the survey shows that a majority or 74 percent of those covered by the study are of the 50- to 55-year-old age group. The same group believes that they need some P3 million in savings/investment to “send” them home.

The top four conditions for OFWs to stay home for good are to open their own business, their children have finished schooling, they have a car and they own their house.

Their top fears that could derail their aspirations are risk of getting sick, fear of losing job, fear of calamities and worried about poverty.

The study, conducted by Taylor Nelson Sofres (TNS), shows that the OFWs invest their money in house/condominium, lot, jewelry, business, car, retirement plans, insurance, dollar funds and memorial plans.