Aging Philippines: Why fintech firms should pay attention to the country’s silver economy

Special Report by Arianna Aguiluz, Correspondent

The Philippines is on track to become an “aging population” by 2030, with citizens aged 65 and older projected to account for 7 percent of the total population, according to the Philippine Statistics Authority (PSA).

While this shift reflects improved health outcomes and longer life expectancy, economists and policymakers warn that it may also redefine how the country manages economic growth — and how fintech firms design financial products for an older, slower-growing market.

The Commission on Population and Development (CPD) confirmed that the Philippines’ population growth rate has dropped significantly — from 1.6 percent between 2015 and 2020 to just 0.8 percent between 2020 and 2024. This means the country’s once-youthful demographic is gradually thinning out, while the proportion of working-age and elderly Filipinos grows.

CPD Deputy Executive Director Lolito Tacardon

“If the government can optimize this transition, it can positively contribute to economic development. But failure to provide jobs and opportunities will mean more dependence on government resources,” said CPD Deputy Executive Director Lolito Tacardon during a media interview held at the sidelines of the 10th National Population, Health, and Education Conference.

A looming economic shift

The trend reflects broader global demographic shifts. The World Health Organization (WHO) estimates that by 2050, the global population aged 60 and older will double to 2.1 billion, with two-thirds living in low- and middle-income countries — including the Philippines.

IMAGE CREDIT: https://www.pids.gov.ph/

By mid-century, around 12 percent of Filipinos could be aged 65 and above, pushing the nation deeper into the ranks of aging societies. Experts say this will have major implications for labor productivity, public spending, and consumer behavior, particularly in sectors like financial services, health tech, and digital banking.

For fintech firms, this evolving landscape presents both a challenge and an opportunity. On one hand, fewer young workers may slow loan growth and reduce demand for high-risk financial products.

On the other, an expanding elderly population opens up new markets for retirement planning, health insurance, digital savings, and micro-investment platforms tailored for seniors and near-retirees.

“Financial institutions — especially fintechs — will need to rethink how they engage an older, less tech-native audience,” said a senior economist from the Philippine Institute for Development Studies (PIDS). “This includes developing low-friction mobile banking tools, accessible interfaces, and personalized financial products that address the needs of retirees and informal workers.”

Health, pensions, and the need for systemic reform

Dr. Grace Cruz (in pink), presenting the results of Aging and Health 2. CREDIT: Jefferson Villacruz

A separate report, the Longitudinal Study of Aging and Health in the Philippines (LSAHP) Wave 2, underscores the urgency of this demographic shift. Conducted by the UP Population Institute and partner organizations, the study found that many older Filipinos still lack access to basic health services and financial security.

Only 31 percent of hypertensive and 18 percent of diabetic older persons consistently receive free medication from public health facilities. Awareness of vaccination programs remains low, with fewer than half of respondents familiar with free flu and pneumonia shots available to indigent senior citizens.

Despite laws such as the Expanded Senior Citizens Act of 2010 (RA 9994) and the Universal Health Care Law of 2019 (RA 11223), researchers warn that policies for seniors remain fragmented and outdated. The LSAHP study recommends streamlining overlapping mandates, raising pension rates, and investing in long-term care homes to address the growing economic vulnerability among the elderly.

“Many older persons remain dependent on family support, but intergenerational assistance is declining in Asian societies,” said Dr. Grace T. Cruz, LSAHP project lead. “We need a cultural and policy shift that enables active, financially independent aging.”

Fintech’s role in building an inclusive silver economy

As traditional support systems weaken, fintech innovation may play a key role in bridging financial and social gaps.

Digital banks, for instance, can expand pension distribution, while e-wallets and microfinance apps could simplify benefit claims and payments. Insurtech firms can design affordable microinsurance for health or funeral costs, and AI-powered advisory tools can help seniors manage savings and investments.

However, accessibility remains an issue. “Fintech platforms must ensure digital inclusivity,” Cruz added. “Older Filipinos are not necessarily digital natives. Usability and trust will be critical.”

For now, the Philippines stands at a demographic crossroads — balancing between the promise of a productive workforce and the rising needs of an aging population. How the government, private sector, and fintech ecosystem respond will determine whether this transition becomes a burden or a breakthrough.

Tacardon summarizes it nicely, saying, “The aging of our population isn’t just a social concern — it’s an economic reality. The earlier we prepare for it, the better our chances of turning it into an opportunity for growth.”