Filipinos are significantly underprepared for their later years, according to a new study by Insular Life Assurance Co. (InLife), which suggests that traditional savings accounts are no longer sufficient to guarantee a worry-free retirement.

The inaugural InLife Retirement Index returned a score of 47 out of 100, highlighting a gap between the aspiration of a comfortable old age and the practical financial measures required to achieve it.

The index evaluated readiness across six metrics: life stage, personal finances, health, pension participation, sentiment, and social support. The findings indicated that retirement in the Philippines is increasingly shaped by rising healthcare costs, longer life expectancy, and a shift in traditional family support structures.

Generation X emerged as the most prepared demographic with a score of 54, driven by peak career earnings and the pressure of immediate family responsibilities. In contrast, Gen Z scored the lowest at 36.

While younger Filipinos report a clear vision of their ideal future, the study found that this has not yet translated into concrete financial planning or asset accumulation.

A gender gap also persists, with men scoring 49 compared to 45 for women. Researchers attributed this disparity to higher rates of formal employment and investment participation among men. Furthermore, health remains a critical volatility factor; respondents with higher index scores were more likely to have dedicated funds for medical emergencies, which frequently deplete general retirement savings as chronic conditions arise with age.

“Retirement should not be seen as a financial finish line,” said Abigail A. Magtibay, InLife strategic marketing and brand experience head.

She noted that many Filipinos remain uncertain about their retirement date because their plans are often contingent on how long they must provide financial support to their families.

The rise of the gig economy has exacerbated these vulnerabilities. A growing segment of the workforce operates without the safety nets provided by the Social Security System (SSS) or the Government Service Insurance System (GSIS), leaving them more exposed to poverty in old age.

Rex Mendoza, Rampver Financials chairman, identified three primary misconceptions stalling Filipino retirement planning: underestimating life expectancy, assuming expenses will decrease after work, and overestimating the availability of post-retirement employment.

Data showed that only one in three retirees successfully finds work, as corporate hiring tends to favor younger applicants.

In response to these findings, InLife launched Retire Assure, a product designed to mimic a monthly paycheck from age 60 to 100.

Unlike traditional lump-sum payouts, the plan focuses on lifetime income streams and includes a life insurance component of at least 110 percent of premiums paid. The insurer also introduced Retire Assure 2, a short-pay version for individuals aged 48 to 73, allowing for funding in just two annual installments to mitigate market volatility.

Jose Eduardo O. Ang, InLife chief product and innovation officer, urged Filipinos to determine their “magic number”—the total capital required to maintain their current lifestyle—by consulting financial advisors and utilizing retirement calculators to account for future monthly expenses.