Filipinos Face Reality of Financial Preparedness with Only 50K in Emergency Funds

Meet Pia, a 35-year-old senior executive, loving wife, and devoted mother of two. On paper, her life reflects success and stability.

But beneath the surface, Pia struggles with a challenge that many middle-class Filipinos share: financial preparedness for emergencies.

The PURPLE Report, commissioned by insurance provider EastWest Ageas and conducted by global consumer intelligence leader NielsenIQ, reveals a stark truth, most Filipinos have only P50,000 in emergency savings. Only two in ten have funds that could cover more than three months, and even fewer reach P100,000.

Balancing Today’s Needs with Tomorrow’s Risks

For many Filipinos, everyday expenses consume a significant portion of their income. The study shows that 30% of monthly earnings go to basic household costs like food, rent, transportation, and mortgage payments. With these immediate obligations, long-term financial planning often falls by the wayside.

Despite these challenges, Filipinos are aware of the importance of being prepared. 52% worry about the health of their loved ones, while 24% are concerned about critical illnesses and the associated costs.

The stakes are high. According to the Philippine Statistics Authority, ischemic heart disease is the leading cause of death, with treatment costs averaging P690,000 for an eight-day hospital stay. This far exceeds the emergency funds most Filipinos have on hand, often surpassing their annual income. While government programs may cover part of the cost, they rarely compensate for lost earnings during medical emergencies.

Are Filipinos Truly Ready?

Age and experience play a role in financial readiness. The PURPLE Report finds that Filipinos over 40 are more likely to have more than three months of emergency savings, while younger adults, ages 22–39, often have shorter financial buffers.

Economic pressures like inflation and income instability further widen the gap between the desire to be ready and the reality of being prepared. When emergencies strike, many turn to personal savings, support from family and community, or loans from informal sources. While these solutions showcase resilience and resourcefulness, they also expose vulnerabilities when unexpected crises arise.

Closing the Gap Between Wanting and Being Ready

Filipinos don’t have to choose between meeting daily needs and planning for the future. Achieving financial readiness requires education, access to tailored insurance, inclusive savings programs, and financial literacy tools. Combining these resources can help bridge the gap, ensuring families can meet both present obligations and future goals.

Financial preparedness is more than a number in the bank, it’s peace of mind, security, and confidence in facing life’s uncertainties. By aligning solutions with the realities of daily life, every Filipino like Pia can move closer to a secure, stable, and empowered future.