Filipino Gen Z workers hold a mixed array of sentiments regarding financial security and future planning. According to a survey conducted by leading HMO company PhilCare, many within this demographic believe their earnings suffice not only for retirement but also for indulging in travel and leisure activities.
However, despite this optimism, these young professionals lack confidence in handling unforeseen expenses and view homeownership as an elusive dream rather than a realistic possibility.
These insights stem from PhilCare’s ongoing multi-generational study, aimed at analyzing the mindsets of Filipino employees across different age groups.
The survey highlighted that 73 percent of Gen Z respondents feel adequately prepared for retirement, while 65 percent can allocate funds for leisure, including travel and vacations. In contrast, only 44 percent are confident in meeting daily and unexpected expenses, and less than 39 percent believe they can afford their desired home.
“When it comes to managing their money, Gen Zs seem to be balancing future aspirations while navigating current challenges. Companies looking to recruit and retain young talents need to be creative with their benefits to address this need,” said Jaeger Tanco, PhilCare’s President and CEO.
The PhilCare study, “Philippine Workplace: The Rise of Gen Z,” led by Dr. Fernando Paragas of the University of the Philippines’ College of Mass Communication, also revealed that 76 percent of respondents feel the responsibility to earn not just for themselves but also for their families.
Tanco further added, “Businesses should acknowledge Gen Z’s financial responsibilities toward their families. Offering support beyond the standard paycheck could significantly impact their financial wellness.”
Former Health Secretary and PhilCare Study Chairman Dr. Enrique Ona urged policymakers to devise strategies promoting affordable housing for the growing Gen Z workforce, which according to data from the Philippine Statistics Authority constitutes 18% of the country’s labor force.
“Government initiatives that encourage affordable housing projects would benefit the younger generation,” Ona said. “Another effort could be the development of enhanced financial literacy programs within educational curriculums that equip young people with the skills and knowledge necessary for effective retirement planning and housing investments.”
The survey findings also carry implications for business owners and employers, highlighting an opportunity for them to contribute positively to their employees’ financial well-being, according to PhilCare Chairman of the Board Monico Jacob.
“Employers may benefit from implementing financial wellness programs that offer resources and guidance on the areas of budgeting, investing, and housing decisions to help employees navigate financial challenges effectively,” he said.
“They may also want to explore flexible work arrangements, including remote work options, to ease the financial burden of commuting and onsite work so employees can save money for more important things like housing.”
PhilCare’s study on Gen Zs is part of a series of studies the HMO leader conducted on different generations. It is set to release subsequent findings in early 2024.
