Sun Life: Rising cost of living dents Filipino financial resilience
High inflation is weakening the financial resilience of Filipino households, with rising living costs eroding savings and undermining long-term financial security, according to Sun Life’s Financial Resilience Index 2026.
The index, which surveyed around 6,000 respondents across six Asian markets, including roughly 1,000 Filipinos, found that the share of highly resilient households in the Philippines fell sharply to 19 percent in 2026 from 33 percent a year earlier.
Highly resilient households are defined as those that feel financially well secure, plan more than five years ahead and well prepared to cope with financial emergencies.
Meanwhile, the proportion of low-resilience households increased to 16 percent from 11 percent, with most respondents in this group saying they are “not prepared at all” should living costs continue to rise.
These households feel financially insecure, plan just a few months ahead or not at all and are unprepared to cope with financial emergencies.
Households classified as moderately resilient, meanwhile, grew to 64 percent from 56 percent.
These households feel moderately secure, are able to plan up to four years ahead and are somewhat prepared to cope with financial emergencies.
Big shift
The shift comes as 95 percent of Filipino respondents said inflation had made it more difficult to cover monthly expenses, while 61 percent identified the rising cost of living as the biggest barrier to taking greater control of their finances.
Inflation in the Philippines stood at 7.2 percent in April, when the survey was conducted, marking its highest level in more than three years. This eased to 6.8 percent in May, though still elevated and well above the government’s target range.
“This year’s Financial Resilience Index reveals a troubling trend: as rising living costs intensify, more households are sacrificing their long-term financial security to cope with immediate pressures,” Sun Life said in the report.
Intensifying pressures
With the cost-of-living pressures intensifying, about 54 percent of the respondents are prioritizing day-to-day financial needs over long-term planning.
About 22 percent said they had already dipped into their savings to manage higher expenses, while 30 percent reported reducing or skipping essential spending. Another 9 percent said they had paused retirement savings contributions.
The report further found that respondents experiencing high inflation pressures were more than three times as likely to borrow money, 2.5 times more likely to skip essential purchases, and twice as likely to reduce or suspend retirement savings.
“While most Filipinos continue to manage their day-to-day expenses, fewer feel confident about what comes next,” Sun Life added.
As it is, financial confidence has deteriorated after only 7 percent of Filipinos now consider themselves very financially secure, down sharply from 20 percent in the previous survey.
The lack of confidence is mirrored in long-term planning, as only 22 percent of respondents said they had financial plans extending beyond five years. INQ
