Rising household expenses and persistent inflation are forcing the vast majority of Filipinos to pivot away from long-term financial goals just to cover daily necessities, according to newly released research from EastWest Ageas.
The company’s PURPLE Report 2026 reveals a sharp divide between financial intent and economic reality: while 90% of Filipinos prioritize building financial buffers to shield their families from rising prices, lack of emergency cash, and income instability, immediate living costs continually strip away their room to save.
Data from the report underscores the heavy financial strain currently weighing on local households. In the second quarter of 2026, 43% of Filipinos reported that their financial standing had worsened. To cope with escalating cost-of-living pressures, families are making direct lifestyle compromises:
- 56% are slashing budgets to prioritize immediate basic needs
- 52% are tracking daily expenditures more closely
- 42% are actively cutting back on nonessential spending
Despite these budget constraints, long-term aspirations remain high. Eight out of 10 Filipinos emphasize the importance of funding their family’s future, children’s education, retirement, and overall financial independence. Furthermore, six out of 10 are actively seeking funds to cover potential hospitalization costs, highlighting critical gaps in existing health insurance coverage.
Addressing media representatives during a joint briefing with EastWest Bank executives and regulatory officials, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Bernadette Romulo-Puyat emphasized that the central bank is building a more inclusive and resilient financial ecosystem. She noted that ongoing initiatives center on expanding financial literacy programs to improve money management skills while making formal financial services easier to access.
Private sector leaders echoed the need for broader, more accessible options. Sjoerd Smeets, President and CEO of EastWest Ageas and President of the Philippine Life Insurance Association (PLIA), highlighted recent progress in national coverage alongside the need for continued public-private cooperation.
“The previous quarter saw insurance penetration increase from 1.79% to 1.96%, a positive sign that the insurance industry’s efforts to financially empower more Filipinos are slowly paying off. To accelerate this, we hope the public and private sectors continue collaborating on financial literacy programs that can help more Filipinos see insurance as a reliable option for building a secure future,” Smeets said.
To support broader adoption, PLIA is driving consumer education through digital platforms like its outreach arm, Life Goals PH, and its insurance glossary, Industrypedia, alongside targeted financial literacy school tours.
Concurrently, EastWest Ageas is aiming to reduce barriers for first-time buyers through its PURPLE Solutions suite, featuring simplified application procedures and direct benefit structures designed to help families plan for future goals without overwhelming their everyday budgets.
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