Life Expectancy At The Philippines

1795 Words8 Pages
Other reason why there was a deficiency in the SSS was because investments are linked to political and social considerations, limiting income and growth. Labor law, rules and regulations that protect workers’ economic security provides ways for employers to avoid the cost of social insurance, hence poor enrollment in SSS (DeCastro, 2015).
Unlike Indonesia, the Philippines have a mandatory retirement age at 65 years old, even though individuals can retire as early as 60. But the life expectancy at birth for the Philippines is lower compared to Indonesia. The 2013 life expectancy at birth for the Philippines was 68.7 years , although the estimate life expectancy at the age of 65 using a life table was 13.5 years . The pension age for Indonesia is 9 years lower than the Philippines right now, but will gradually increase to 65 by 2043.
According to the UN Population Division, the Philippines are currently experiencing decreasing child dependency ratio, while old-age dependency ratio will hover below 10% until it starts rising to 14% around 2050.

Conclusion
Unlike Thailand, Indonesia and Vietnam, the Philippines have a relatively complicated benefit calculation. Replacement rates were too high for non-high earners, up to 78.1% for an average earner, therefore not achieving the pension goal of providing old-age financial security. Learning from the Philippines, we see that actuarial valuations need to be done every few years to review the sustainability of the pension fund and
Get Access