RP one of Asia's most optimistic

A new international survey of satisfaction with life reveals the Philippines is one of the most optimistic in the region.

The AXA Asia Life survey, the first such outlook Index by the global insurance group, found that three developing economies--India, the Philippines, and China--are significantly more optimistic than their peers in the more developed economies of Hong Kong, Malaysia and Singapore.

India ranks as the most upbeat, with a score of 87.2 on a scale of 100, followed by Philippines' 85 and China's 75.1. The most pessimistic, at 59.2, was Singapore.

The survey drew its conclusions from interviews with 2,400 mass affluent residents between the ages of 25 and 50 in these eight markets in Asia, canvassing their views about life over the next five years.

The more ebullient mood of the mass affluent in the three most optimistic countries does not derive from their having a higher level of financial safeguards in place--as might well have been the case for their forebears--however.

The three most optimistic countries are also found to be less prudent in preparing for the future. AXA says 82% of the mass affluent in India, 69% in China and 78% in the Philippines declare they have not started making plans for retirement. That compares with the more retirement-conscious Hong Kong, at 47%, Singapore, at 41% and Malaysia, at 36%. Singapore's mass affluent begin retirement planning as early as the age of 34, ahead of Hong Kong's 35 and Malaysia's 37, in contrast with the regional average of 39.

"The study also revealed that while strong optimism obviously reflects a positive view of life, it appears in several markets to co-exist with a lack of awareness about life planning and could lead to a false sense of security about the future."

India and the Philippines are also the region's laggards in health planning, with only 7% in India and 21% in the Philippines having self-purchased health insurance.

Of the four issues at the center of Asian life planning--family, career, health and retirement--the region is unanimous in ranking retirement as the area it is least optimistic about, in spite the universal aspiration to retire at an earlier age.

AXA's survey ended on a high note itself, anticipating that the increasingly affluent populations in countries such as China and India will become more sophisticated and will prepare more diligently for the future as their societies advance. With growing need for financial planning and more elevated expectations for investment performance to secure their gains, there should be increased business for wealth management services across the region.

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Source: Good News Pilipinas