Rising living costs are forcing more Filipinos into short-term coping strategies that undermine long-term financial stability, according to a report by Philstar Biz citing Sun Life Philippines. The insurer warned that many households are cutting essential spending or pausing retirement contributions to meet immediate needs.
Sun Life Philippines noted that the prolonged rise in prices of goods and services is eroding financial resilience among Filipino families. The company's latest financial wellness index showed a decline in long-term savings and investment behavior as more people prioritize day-to-day survival over future planning.
The findings highlight the widening gap between income growth and living expenses, with experts urging policymakers to address inflation and support sustainable wage increases. Without intervention, the trend could leave a larger portion of the population vulnerable to financial shocks in the years ahead.