PIDS: OFW financial literacy initiatives lack impact

A Philippine Institute for Development Studies (PIDS) paper highlights that the communication of government financial literacy initiatives for overseas Filipino workers (OFWs) has not been systematic enough to make a significant impact.

The study, titled "Long-Term Effects of Labor Migration in the Philippines," found that young OFWs aspire for early retirement but may not receive systematic support for financial literacy.

Remittances from OFWs constitute at least 10% of the Philippines' gross domestic product (GDP), with 47.4% allocated for consumption, 24.8% for savings, and 12.6% for investments.

While the Bangko Sentral ng Pilipinas has initiatives like PiTaKa, which includes info sessions on Personal Equity and Retirement Account (PERA), the PIDS paper suggests existing financial literacy programs need further development and promotion.

The paper urges the government to enhance financial literacy, social protections, and skills for OFWs to 'futureproof' them and their families and encourage investments beneficial to the Philippine economy.