Sun Life Survey: Filipinos show rising financial confidence, but long-term challenges persist

Sun Life Asia’s latest Financial Resilience Index reveals a complex yet hopeful picture of Filipino financial behavior, showing increased short-term confidence but persistent challenges in long-term planning and resilience.

The study, conducted across six Asian markets including the Philippines, Hong Kong, Malaysia, Singapore, Indonesia, and Vietnam, surveyed 1,000 Filipino respondents between April and May 2025.

Financial Confidence on the Rise but Long-Term Struggles Persist

The study found that 66% of Filipinos now feel financially secure, up from 45% in the previous wave. Confidence in managing monthly finances also rose from 57% to 69%, suggesting improved short-term financial resilience.

However, long-term financial confidence dipped, with only 64% feeling capable of meeting future goals, down from 72%. One in three Filipinos say that, in case of income loss or illness, they would not be able to sustain themselves for more than three months without external support. Younger respondents based in rural areas are especially vulnerable, with limited emergency savings and lower access to financial tools.

Immediate Needs Take Priority when Inflation Hits Hard

Filipinos are prioritizing day-to-day budgeting (61%) and building emergency funds (45%), while long-term goals like retirement and home ownership have become less urgent. This shift underscores the impact of inflation and cost-of-living concerns on financial planning.

Nearly all respondents reported that inflation has affected their ability to cover monthly expenses. The biggest cost increases were seen in food, energy, health, and transportation. In response, many are cutting non-essential spending and educating themselves about personal finance.

Financial Literacy Shows Promise as Sources of Advice Evolve

While banks and family remain the top sources of financial guidance, social media and AI tools are gaining popularity, especially among younger and urban consumers. Trust in banks remains high but has slightly declined, and cost remains a barrier to seeking professional advice.

Despite this, most Filipinos rate their financial literacy as “fair” or better, and survey results show a strong understanding of basic financial concepts. It also reveals that literacy improves with age and is higher among urban residents, though gaps remain in rural areas. Additionally, 67% of respondents save or invest at least 10% of their income, and 78% review their investments monthly or more often. These behaviors indicate a growing commitment to financial discipline.

“These findings highlight both the resilience and the vulnerability of Filipino households,” said Benedict Sison, CEO and Country Head of Sun Life Philippines. “We are encouraged by the growing financial confidence and commitment to saving, but it’s clear that more support is needed to help families plan for the long term. Sun Life remains committed to empowering Filipinos through financial education, innovative products, and community engagement.”