by Lovely A. Carillo
Only 2% of every 100 Filipinos who retire are financially independent, while the majority or 45% remain dependent on their relatives and 30% dependent on charity. Of this total, 22% are still working to support themselves after retirement.
A sad picture indeed for every Filipino who has worked hard all his life only to find out that he does not even have enough for his daily sustenance even after working for at least 40 years.
It is time! Thus goes the battle cry of Sun Life Financial Philippines’s latest financial advocacy campaign, which features James Yap and son Baby James Aquino Yap in the frontline of an advertisement that features a father mumbling to his 3-year old son—“Sana paglaki mo hindi ako maging pabigat sa yo (I hope when you grow up I will not be a burden to you).”
“We want every Filipino to assume an active role when it comes to his or her financial needs,” Sun Life chief strategic marketing officer Greg Martin said during a recent press conference held at the Grand Mercure Hotel.
Based on Sun Life’s study, 76% of Filipinos are concerned about paying for health treatment but only 35% depend on health insurance. Majority or about 85% still rely on savings to finance their health requirement.
“The Davao market is ready for financial planning,” Martin said. In fact, he said, the Dabawenyos are more optimistic about the future and their awareness of financial planning need is growing.
Martin said they have a variety of products that will cater to those who want to prepare for their retirement. He added they are not particularly pushing for a certain product since Sun Life offers a variety of options for financial planning.
“We have seven funds including equity funds which is invested in stocks, and which is the biggest today because the market is up,” Sun Life of Canada Philippines President and Chief Executive Officer Rizalina G. Mantaring said.
Mantaring said Mindanao is a great area of opportunity and they are looking at the Davao Region as one of the main areas where Sun Life can really hit it big when it comes to financial planning.
New units have been formed in Davao as early as last year, she said, and all are doing good. Sun Life has three branches in Mindanao, two in Davao City and one in Cagayan de Oro City. A branch is composed of several units, with up to 10 people in each unit.
“We have up to 150 agents in Davao City right now but there are other agents operating and educating people about financial planning in various areas in Mindanao,” she said.
SLFP chief operating officer Naresh Krishnam said income replacement need products still dominate the insurance industry in the Philippines. In fact, he said, 20 to 40% of Sun Life’s business comes from this product category.
Retirement planning is fairly new to the Filipinos but it is a big thing in other countries the United States. The best possible time to start planning for your retirement, experts said, is during the most productive stage of your life.
