While nearly seven in 10 Filipinos feel more secure about their short-term finances, confidence in meeting future financial needs has declined as long-term goals are viewed as less urgent.

According to Sun Life Asia’s latest Financial Resilience Index published last Friday, Aug. 15, 66 percent of Filipinos “now feel financially secure,” higher than the 45 percent recorded in the previous survey.

From 57 percent previously, confidence in managing finances on a monthly basis jumped to 69 percent. Sun Life said this suggests improved short-term financial resilience.

“However, long-term financial confidence dipped, with only 64 percent feeling capable of meeting future goals, down from 72 percent,” showed the survey conducted across Asian markets, including the Philippines, Hong Kong, Malaysia, Singapore, Indonesia, and Vietnam. For the Philippines alone, 1,000 respondents were surveyed between April and May.

“One in three Filipinos says 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,” Sun Life reported.

It can be noted that inflation, despite hitting its lows in recent months, has made a significant impact on the priorities of Filipinos. “Long-term goals like retirement and home ownership have become less urgent,” the study said.

Meanwhile, six in 10 Filipinos prioritize day-to-day budgeting, while four in 10 list building emergency funds as their top priority.

“Nearly all respondents reported that inflation has affected their ability to cover monthly expenses,” Sun Life said. To manage daily spending against the backdrop of massive price hikes in “food, energy, health, and transportation,” Filipinos resort to eliminating non-essential spending.

Personal finance education has also been seen as an important measure to manage personal spending, but trust in banks for financial guidance has dropped, according to the study. This comes as younger Filipinos living in urban areas have grown more trusting of social media and AI-powered content.

“Trust in banks remains high but has slightly declined, and cost remains a barrier to seeking professional advice,” Sun Life noted. Despite this, findings showed that Filipinos have a “strong understanding of basic financial concepts,” although low literacy levels still persist in rural regions across the country.

A look at Filipinos’ financial portfolios showed that 67 percent save or invest at least 10 percent of their income, and 78 percent review their investments monthly or more often. Sun Life said this reflects “a growing commitment to financial discipline.”

Benedict Sison, CEO and country head of Sun Life Philippines, said the findings reflect both the “resilience and the vulnerability of Filipino households.” He also said the growing financial confidence and commitment to saving are encouraging, but noted that “more support is needed to help families plan for the long term.”