The Philippines’ aging population faces a growing retirement divide, according to Sun Life’s latest regional retirement survey. While many expect to work beyond retirement age by choice, a significant number are doing so out of financial necessity.
The survey, titled Retirement Reimagined: Asia’s Retirement Divide, found that 72% of respondents expect to continue working beyond age 65. Their motivations vary: 53% cite purpose and fulfillment, 41% seek mental stimulation, and 36% value social connections.
However, 71% say they need further income to support their daily living and long-term financial security.
"What we're seeing is not a single retirement experience, but two very different realities," said Benedict Sison, CEO and Country Head of Sun Life Philippines. "For those who are prepared, working longer can be a choice that offers flexibility and freedom. For others, it reflects financial pressure. Planning early and holistically is what determines which path people are on."
An option for some, an obligation for others
The research identifies two groups: 'Gold Star Planners' who are financially prepared and choose when to retire, and 'Stalled Starters' who delay retirement due to financial constraints.
Among Gold Star Planners, 73% expect to work beyond retirement by choice, motivated by staying active (38%) and social engagement (25%).
In contrast, 20% of Stalled Starters are unsure if they'll work beyond retirement, with half citing the need to save more as their primary reason for delaying it.
GenAI emerges as a risk factor, but human-led advice prevails
As more people turn to generative AI for financial decisions, the research highlights a growing risk of self-directed retirement planning without professional guidance. Use of tools such as ChatGPT and Google Gemini has more than tripled since the last survey, rising from 3% to 11%.
However, Filipino respondents are relying more on professional advice as compared to last year, with the same amount consulting banks (45%) and more people turning to independent financial advisors (44% vs 43%).
Despite the rise in digital curiosity, this shift underscores a growing preference for trusted, human-led guidance in navigating increasingly complex retirement decisions.
Financial Security Drives Retirement Optimism
Financial security is the strongest predictor of retirement optimism. Among non-retirees looking forward to retirement, 67% cite financial security as a key reason, followed by stability (36%) and feeling in control (26%).
Conversely, 47% of those not looking forward to retirement cite financial insecurity, while 44% worry about inability to support family financially.
Despite this, planning horizons remain short: 25% make no pre-retirement plans, 37% plan only within two years of retirement, and just 26% feel very confident about their retirement plans.
The Sandwich Generation Challenge
Many Filipinos support both elderly relatives and young dependents, leading 34% to downsize lifestyle expectations and 14% to postpone retirement.
Increasingly, people want control over retirement timing—86% believe retirement should be a personal choice rather than mandatory at a specific age. This sentiment is strongest among Gen Z (69% agree strongly) compared to Baby Boomers (46%). Overall, 82% favor allowing people to work beyond the Philippines' retirement age.
Health Equals Wealth in Retirement
Current health status strongly influences retirement outlook. Among those whose views on retirement have changed recently, 55% credit better than expected physical health and 44% cite improved mental health. Conversely, poor health drives 26% of early retirements.
"Health is a form of wealth in retirement, influencing both when people retire and the quality of life they enjoy," Sison said. "At Sun Life, we remain committed to understanding the evolving needs of our Clients by offering a comprehensive range of retirement planning solutions."
The findings in the Retirement Reimagined survey were analysed and established through a total of 3,006 interviews conducted online across Hong Kong SAR, Indonesia, Malaysia, the Philippines, Singapore and Vietnam in November 2025. The research explores perspectives around what it means to age, confidence in achieving these aspirations, and the steps people are taking to make their vision of retirement a reality.
The full report is available here: www.sunlife.co/
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