An average overseas Filipino worker (OFW) needs an estimated 18.11 years or 217 months abroad to accumulate P3 million in savings before reuniting back with family, according to a study commissioned by the Philippine American Life and General Insurance Co. (Philam Life) and conducted by Taylor Nelson Sofres (TNS).
The study revealed that each OFW on average saves roughly P13,800 a month — combining his or her savings of P9,658 and P4,142 saved by family in the Philippines. Therefore, to save P3 million, an OFW needs to spend close to two decades away from the family.
Philam Life chief marketing officer Jaime Jose Javier Jr. said that 97 percent of OFWs still prefer bank savings account, although the same percentage of Filipinos abroad are aware of other means of investments such as personal life insurance, non-life insurance, pre-need plans and other investment portfolios.
Increasing yields of savings and investments several fold, Javier said, can shorten the number of years OFWs need to spend away from families.
The findings came from TNS survey where 74 per cent of respondents belong to the 50-to-55-year-old age group. The same group believes P3 million is the right amount they need to send home.
The group’s top four conditions for returning to the Philippines include setting up own business, children finished studies, owning a house and having a car. At the same time, their top fears that could derail their plans are the risk of getting sick, losing job, calamities and prevailing poverty.
The study showed that the top investment options for OFWs are investmenting money in real estate (house/condo, lot), jewelry, business, car, retirement plans, insurance, dollar funds and memorial plans.