Women tend to outlive men, but are they financially ready for it?

Did you know that women in the Philippines (and pretty much everywhere) live longer than men? According to the World Health Organization (2023)^[1], women globally outlive men by about five years. Here in the Philippines, we’re looking at an average life expectancy of 74 for women versus 67 for men (Statista, 2023). ^[2]

That’s great news—more time to chase dreams and enjoy life! But here’s the catch: those extra years need extra financial planning. Because what’s the point of a long life if it comes with money stress?

Think long term and plan ahead

Since we’re talking long-term, we have to look at what you can save or earn over a lifetime. We should also use our prime earning years to plan for the later ones – especially since your income stops or drops just as medical expenses tend to rise.

A study by Fidelity Investments (2023) found that women are actually great at saving—but we tend to start later.^[3] Why? For many women, it’s due to treating your personal money as household money, filling others’ short-term financial gaps at the expense of your own long-term savings.  Women are also more likely than men to take on serious caregiving, often going part-time or leaving work altogether. This personal decision means a cut in income, often during the high earning late-career years.

Longer life needs smarter financial moves

But guess what? Financial security is within reach. Start early and stick to your game plan, and you can grow your funds while you’re simply living life. You can take charge of your future starting today. Here’s how:

Start retirement savings early or catch up as soon as possible

The earlier you begin, the better! Open a bank account and save diligently.

Compound interest is your friend. Go a step further with these ways to optimize savings:

1. High yield savings accounts (HYSA) are one way to make your savings grow faster. Unlike regular savings accounts, HYSAs offer much higher interest rates, so you earn more money over time. These accounts are usually offered by online banks or digital arm of established banks, which can give better rates because they have lower costs. A high-yield savings account is perfect for building an emergency fund or saving for future goals.
   
2. The Pag-IBIG MP2 (Modified Pag-IBIG II) is a voluntary savings program offered by the Home Development Mutual Fund (Pag-IBIG Fund) in the Philippines. It's applicable for you if you're looking to save more and earn dividends on top of your regular Pag-IBIG savings. The program offers competitive dividend rates, which are generally higher than those of traditional savings accounts.
   
3. Employer-sponsored retirement contribution programs are benefits that helps employees save for their future. These plans allow employees to contribute a portion of their salary towards retirement savings, often with matching contributions from the employer. This boosts overall savings, making them an effective way to build a substantial retirement nest egg.
   
4. Time deposits accounts offer a higher interest rate in exchange for keeping your money with the bank for a fixed period. Banks provide various time deposit terms, from overnight to 364 days for short-term deposits, and over one year for long-term deposits. While interest rates may vary between banks, all time deposit accounts generally offer better returns than regular savings accounts, with the trade-off being that you cannot withdraw your money during the term. If you take out your money before the agreed period, you'll have to pay a penalty fee. So, even if you need cash urgently, it might be cheaper to wait until the term ends to get all your money back.
   
   Time deposit accounts are great if you have savings you don't need to use right away. If you're okay with not touching your money for a while, consider putting some of it into a time deposit.
   

Look into various investment opportunities

If you're not yet comfortable investing, start learning. A Fidelity study found that confidence plays a key role in investment success, and building that confidence starts with taking the first step.^[3]

1. Investment-linked insurance mix life insurance with investments. When you pay premiums, part goes to life insurance, and the rest is invested in funds like stocks or bonds. This way, you get insurance protection and a chance to grow your money. You can choose funds based on your risk level and goals and switch them if needed. Professional fund managers handle the investments, making it easier for you. An insurance plan like FWD Manifest which gives you strong life protection and smartly grows your wealth. It lets you invest money with minimum market knowledge and maximum opportunity for ROI. It also comes with multiple benefits and rewards too that help fast track your financial plans.
   
2. Investing in funds is a smart way to grow your money over time. Funds pool money from many investors to buy a diversified mix of stocks, bonds, or other assets, which helps spread out risk. Begin by researching different types of funds, such as mutual funds or exchange-traded funds (ETFs), and choose ones that align with your financial goals and risk tolerance.
   
3. The Personal Equity Retirement Account (PERA) is the Filipino counterpart of the 401k or IRA in the United States. It’s a voluntary retirement investment program available through accredited banks, insurance companies, or administrators. You can save and invest up to ₱100,000 annually (₱200,000 for OFWs), with tax-free returns on your investment income. Withdrawals can be made at age 55 after at least five years of contributions, either as a lump sum or monthly pension. Early withdrawals are subject to penalties and funds are subject to market fluctuations.
   
4. Invest in real estate. Over time, the value of your house or condominium unit tends to appreciate, particularly if it's located in a desirable area. Additionally, your property can serve as a source of income in retirement by being rented out. This not only provides financial security but also ensures a steady stream of revenue during your golden years.

Keep finances strong despite health surprises along the way

Living a long life is a wonderful goal, but longevity doesn't always guarantee good health. As we age, the likelihood of facing serious health challenges increases. This is where critical illness insurance becomes essential. It provides a financial safety net during times of severe health crises, ensuring that you and your family are protected from the financial strain that often accompanies critical illnesses.

A plan like FWD Set for Health Critical Illness Insurance offers zero-waste protection that ensures every premium you pay works for you. With this plan, you can claim up to three times for unrelated major critical illnesses. Plus, if you never make a claim, you'll get back 100% of your premiums paid, making it a win-win situation. Additionally, if you pass away before age 75, your family will receive 100% of the Benefit Amount, offering peace of mind and financial security for your loved ones. Get an instant quote.

Learn more about Set for Health and other FWD critical illness insurance.

Family and money

You may be a pro at juggling the household budget, but don’t forget to look out for yourself too. It’s natural to rely on family for support in your elder years, but life can be unpredictable. So, take action now to ensures you have a safety net no matter what happens. Treat savings and investments as a monthly must-have – because they are.

In the Philippines, money and family are deeply connected. Every household has its own way of handling finances. Taking care of loved ones is important, but your long-term financial well-being matters just as much. When you’re financially secure, you’re in a stronger position to help those you care about. Set aside something for yourself. It’s not selfish. It’s smart. For them and for you.

Start planning your finances for a long life

FWD’s investment-linked products are designed for practical go-getters, to help secure your future while time is on your side. Whether it’s growing wealth, staying healthy, or ensuring a comfortable retirement, these solutions keep you financially confident for the long run.

Living longer is a blessing.  By making wise moves now, you’re setting yourself up for a future where you can thrive —without worrying that you might run short.

So, invest, plan, and make sure your wealth lasts as long as you do. Future you is counting on it!