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Rappler Business

Senior citizens: The forgotten sector in Marcos’ 2026 SONA

Around 80% of Filipino seniors do not hold formal pensions from the SSS or GSIS, leaving them completely unprotected against inflation or sudden medical shocks

Context & Analysis

The omission is telling because the country’s social protection architecture still assumes a formal employment pathway that many families never take. State pension schemes such as SSS and GSIS anchor retirement security for covered workers, but their reach has historically trailed informal work, agriculture, self-employment, and gig jobs where many households operate. When older Filipinos leave paid work without a reliable contribution record, they often depend on family support, savings, or irregular income, which can make household budgets more fragile.

For businesses, this is not only a social issue but a market signal. As more households age, demand shifts toward services and products linked to daily living: groceries with longer shelf life, affordable healthcare, pharmacy chains, home care, mobility aids, senior-friendly housing, insurance, and financial planning tools. Companies that ignore this transition risk missing a growing consumer segment, while those that adapt can build loyalty by offering clearer pricing, flexible payment options, and customer service suited to older users. For consumers, the weak pension base raises household caution: families may save more aggressively, delay big purchases, or depend on remittances and informal safety nets, which can slow discretionary spending even when growth looks healthy on paper.

The regulatory angle matters too. Financial regulators, insurers, and consumer-protection agencies will increasingly face questions about whether products marketed to seniors are fair, understandable, and accessible beyond Metro Manila. Digital platforms may also need to consider usability for older customers as cashless payments expand. Politically, the SONA gap leaves room for civil society, local governments, and private firms to push for stronger social protection, better health financing, and inclusion of informal workers in future policy reforms.

What to watch next is whether pension coverage gets treated as a growth issue rather than a welfare afterthought. Look for proposals that broaden contributions for self-employed workers, improve coordination between social security agencies and local health systems, or encourage private retirement savings through employer schemes. For Philippine businesses, the practical test will be simple: can they serve older customers without assuming formal pension income, and can they help families plan for a longer, more uncertain retirement?

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: rappler.com

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