Manila, Philippines – Retirement is a milestone many Filipinos aspire to, yet most remain financially unprepared. This issue comes into sharper focus even as the Social Security System (SSS) rolls out a historic three-year pension increase starting September 2025, aimed at boosting support for retirees. The question remains: will it be enough?
Retirement goals for many Filipinos include relaxing at the country’s beautiful beaches, setting up investments such as properties, or pursuing a second wind as an entrepreneur. What is concerning is that most Filipinos also find themselves financially unprepared for retirement, and this is a trend that may continue into the younger generations.
The Allianz 2025 Global Pension report titled “Time to Walk the Talk” highlights key challenges and opportunities in building secure retirements worldwide.
Global Findings: A Growing Pension Savings Gap
The study assessed 71 countries and found an average score of 3.7 out of 7, revealing widespread weaknesses in retirement systems. Only Denmark, the Netherlands, and Sweden scored well due to robust savings and early planning.
The report highlights a widening “pension savings gap” – the difference between what people should save and what they actually set aside. Rising life expectancy, healthcare costs, and declining pension coverage mean younger generations may face less comfortable retirements than their grandparents.
The report also points out that many developing countries, including the Philippines, need urgent changes to their retirement system. The main reason for challenges in many emerging economies is that many people work in jobs that are not officially recognized, like street vendors or freelancers, so they often don’t have company or government retirement plans. In many of these countries, less than half of retirees receive a pension, and only a small portion of working people contribute to one.
The PH Retirement Landscape
The Philippines scored 3.9, reflecting the need for stronger systems and more individual action. Key challenges:
- Low savings rates – only 20% of Filipinos have retirement savings.
- Informal employment – 37% of workers lack SSS or GSIS coverage.
- Insufficient benefits – even with the planned increase, the average SSS pension of ₱5,000–₱6,000 today still falls short of living costs.
- Limited financial literacy – many remain reliant on basic savings accounts.
The Cost of Retirement
Are Filipinos Ready for Retirement? For couples entering retirement, this figure doubles. For “full nesters” – parents aged 35–55 with dependent children – the reality is they have only 10–15 years left to prepare for retirement, and their retirement could look like this based on mySSS calculator:
- A 40-year-old earning ₱50,000/month today would need to contribute more aggressively to target a future monthly pension of ₱20,000.
- Even with the SSS pension reform, government benefits alone are unlikely to match retirement needs.
This gap underscores the importance of supplemental planning.
Securing Your Golden Years: Simple Steps for Every Filipino Household
The report emphasizes that individuals must take proactive steps to secure their future. Allianz PNB Life recommends:
- Start saving early – even small amounts grow through compounding.
- Complement government pensions – treat SSS/GSIS as a foundation, not the whole plan.
- Improve financial literacy – understand inflation, investments, and protection products.
- Manage health and insurance needs – staying healthy reduces medical costs in later years.
- Explore private retirement solutions – insurance and investment products can bridge the pension gap.
Get ahead by working with a partner through your financial journey
As part of the world’s leading insurance brand, Allianz PNB Life empowers Filipinos to plan ahead through its LifeChanger network. These financial advisors guide households in building retirement savings, protecting health, and securing family well-being.
“Allianz is committed to helping Filipinos prepare for a confident future,” said Gino Riola, Chief Marketing Office of Allianz PNB Life. “Through education, tailored insurance solutions, and investment options, we aim to close the pension gap and ensure more Filipinos enjoy a secure retirement.”
For more information, visit www.allianzpnblife.ph.