Filipinos blame business profits, interest rates for rising costs.

Businesses making large profit margins are among the key drivers of rising living costs, according to 77% of Filipinos in a 2024 survey by international research firm Ipsos.

The survey, conducted in November 2024 across 32 countries, found that while inflation is starting to decline in several areas, prices continue to rise. It also explored respondents' views on disposable income and attitudes toward taxes.

The study asked respondents about the following factors contributing to the rise of prices of goods:

• State of the global economy: 73%

• National government policies: 68%

• Interest rate levels: 79%

• Businesses making excessive profits: 77%

• Russian invasion of Ukraine: 69%

• Immigration into the country: 59%

• Workers demanding pay increases: 64%

The survey also revealed that 80% of Filipinos believe inflation will continue to rise, while only 10% think their standard of living will improve.

When asked about expectations for living costs returning to normal, only 6% believe costs have already normalized, while 7% think it could happen within the next three months. Around 5% expect normalization within six months, 26% foresee improvement within 2025, 30% believe inflation could subside by 2026, and 28% think it will never abate.

Ipsos noted that the average Filipino perceives the economy as struggling but still considers their own financial situation manageable.

Regarding their current financial status, only 9% say they are living comfortably, while 37% feel they are doing alright. Around 26% are just getting by, 20% find living difficult, and 9% find it very difficult.

Pandemic. Filipinos were also asked about how the pandemic affected their financial situation. Around 17% think they are much better off, 32% say they are a little better off, 25% feel neither better nor worse, 17% feel a little worse off, and 7% believe they are much worse off.

Methodology. The Ipsos survey was conducted across 32 countries, with approximately 22,720 respondents interviewed between October 25 and November 8, 2024.

Participants were aged 18 and above and were interviewed by researchers.

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Source: Philstar

Weak consumer confidence slows solar adoption

Many households are interested in adopting rooftop solar power systems, but concerns about provider trustworthiness and high costs hinder their adoption, according to a study from Ateneo de Manila University.

Homeowners recognize that solar energy contributes to environmental protection by reducing greenhouse gas emissions and air pollution, helping combat the effects of climate change, according to a study by Department of Economics Professor Rosalina Palanca-Tan, published in the journal Challenges in Sustainability.

In a survey of 143 respondents, 82% expressed some interest in adopting solar panels, but only 20% had firm intentions to do so.

Despite the economic and environmental benefits, respondents were reluctant to invest due to the upfront cost needed for installation.

According to the study, a home rooftop solar power setup costs approximately $1,700 (₱100,000), equivalent to more than half a year’s salary for minimum wage workers.

“Many households are unsure if this initial expense is justified by long-term financial and environmental returns,” it said.

The survey found that, aside from costs, trustworthiness of providers, clarity on warranties, and perceived installation quality were equally important considerations.

The study found that while most respondents understood renewable energy’s role in combating climate change, few knew the specific benefits of rooftop solar power or how to find reliable installation services.

“Thus, the study urges stronger government intervention and public education campaigns. In particular, the study suggests improving net metering rates, expanding access to financing options, and accrediting trustworthy RTSP (rooftop solar power) providers to build consumer confidence,” the study said.

Source: Business World

Sun Life survey highlights inflation challenges for retirees in Asia

Retirees in the Philippines are struggling financially amid high inflation, according to a Sun Life Asia survey.

Many of them lament past financial decisions, citing inadequate savings, poor investment choices and early retirement as key sources of regret.

Results of the survey, "Retirement Reimagined: Facing the Future with Confidence" — comprising 3,500 respondents across Asia, including the Philippines — showed 73 percent of Filipino retirees regretted not saving enough, 47 percent wished they had invested more wisely and 38 percent felt they retired too early.

A significant 25 percent said they have been caught off guard by the high cost of living, with 77 percent citing increased general living expenses and 46 attributing it to health care costs.

Despite efforts in savings, the Filipino participants admitted failure in financial preparation. While a number of them managed to save at least 10 percent of their income for retirement, 37 percent said they did not save at all and 21 percent did not foresee their retirement expenses, forcing them to cut back on spending or seek financial support from their respective families.

Inflation has worsened the situation. The Philippines is suffering more from high inflation rates than the Asian average, the survey said.

Consumer price growth hit a 14-year high of 8.7 percent in January 2023, which led the Bangko Sentral ng Pilipinas to tighten its monetary policy.

To date, inflation has settled within the 2.0- to 4.0-percent target range of the central bank at 3.4 percent and the average core inflation to around 2.4 percent, following the four-year low of 1.9 percent in September.

Carla Gonzalez-Chong, Sun Life Philippines chief client experience and marketing officer, stressed the value of financial literacy in addressing these challenges.

"Financial literacy remains key," she said. "We are committed to this advocacy to help more Filipinos overcome the obstacles and enjoy quality lives in their golden years."

The survey also revealed a growing trend among young Filipinos to delay retirement in response to rising living expenses.

Some expect to retire at an average age of 65, significantly later than the current retirees' average of 58. Many younger workers have postponed their retirement plans, with 59 percent citing the necessity of sufficient savings and 46 percent mentioning the demands of covering for increasing expenses.

Source: Business World and Sunlife