THE Asian Development Bank (ADB) said pension reforms are needed to protect the elderly from falling into poverty, with the elderly expected to account for one-fifth of the Philippine population by 2066.
In a working paper released in July, the bank also estimated the 60 and above age cohort to make up 10% of the population by 2029.
“The Lao People’s Democratic Republic (Lao PDR), the Philippines, and Timor-Leste will be the last three Southeast Asian economies to reach the milestone of older people constituting 10% of the population,” it said.
The ADB said Singapore and Thailand hit the 20% milestone in 2020. Brunei Darussalam and Vietnam are expected to hit 20% by 2037.
“There is a clear need to strengthen social protection systems, particularly pension and healthcare services, to support the needs of the growing population of older people and minimize their risk of falling into poverty,” it said.
Government Service Insurance System, the Social Security System, the Social Pension for Indigent Senior Citizens (SPISC), Philippine Health Insurance Corp. (PhilHealth) health insurance, and senior citizen discount and tax incentives remain available, but the population still have low to minimal access, the ADB said.
“The healthcare infrastructure will face mounting pressure to expand long-term care services while managing the growing burden on the PhilHealth system and public health facilities,” it said.
According to the 2026 National Expenditure Program, the government allocated P53.2 billion for PhilHealth in 2026 after granting it no subsidies this year.
The Department of Health was allocated P320.5 billion in next year’s budget, up 29%.
With healthcare costs expected to surge, the ADB urged the government to focus on increasing access to affordable healthcare and improvements in preventive care.
“The existing PhilHealth health insurance coverage may not be sufficient to cover the healthcare costs of older people,” the ADB said.
“With life expectancy projected to improve by 2050, healthcare systems are expected to experience increased demand, creating a need to strengthen existing infrastructure to ensure accessible care for older people,” it added.
Another challenge for the suggested reform is the expansion and accessibility of pensions especially for older people who were previously informal workers, older women, and those from the lowest income categories, it said.
Currently, these demographics are marginalized and underserved by the system, the ADB said.
At the same time, the ADB warned that poverty rates increase as individuals age. This vulnerability is also coupled by the higher essential spending for their food and healthcare, and lower asset ownership.
Citing 2021 Philippine Family Income and Expenditure Survey, the bank said 4.4% of older individuals in the 60–64 age group face extreme poverty.
The corresponding rate for those in the 65 to 69 age group was 5.2%. For the 70 to 74 cohort, the rate was 6.7%.
The 75 and over age group has the highest rate of extreme poverty at 8.1%. It also has the highest percentage in the moderately poor category, at 29.9%, compared to other age groups. — Aubrey Rose A. Inosante