Let’s Talk About the Demographic Sweet Spot (again?) Will our country “get old before it gets rich?”
Last week I read an article that said, “PH enters ‘demographic sweet spot’ amid population growth projections by the Commission on Population and Development (CPD).” https://www.pna.gov.ph/articles/1267150
If you feel a sense of déjà vu hearing this, you’re not alone. We’ve been hearing this term for over a decade ago. Back then, economists heralded the “opening of the window”—the moment a country’s working-age population starts to outpace its dependents. This usually brings economic growth, as seen in developed countries that were able to take advantage of this demographic window.
The demographic sweet spot is not a surefire signal of robust economic development. It is a potential, a window of opportunity that we have to take advantage of, once we enter the era. When we were first talking about it and anticipating it to start by 2015, we were full of hope. We just received our first investment grade rating in 2013, our GDP growth rates and our stock market were among the best performing in the region, and our inflation was at healthy levels.
Today, after over a decade since we entered the window, we seem to have lost that optimism. With the stock market index at levels still below its decade-ago levels—and most of all, the blatant and gargantuan corruption that deprive the citizens of funds for education, health, and other services—the promise has dimmed. These stolen funds were supposed to have been used to lay down the infrastructure to realize our country’s ability to take advantage of this demographic window of opportunity.
Are we going to let this window pass? This window may last until the 2030s. But if we are not able to feed and educate our young generation well, create enough jobs, further invest in skills, health, and improve investment climate, we will totally miss the bus…again.
We are currently in a race against time. According to the CPD report, our fertility rate has declined to 1.9—below the replacement level of 2.1. While this creates a “sweet spot” today (fewer children to support), it also means our workforce will start shrinking soon. By the 2030s, the percentage of Filipinos aged 65 and above will hit 7%—the international threshold for an aging population. If we haven’t built significant national and personal wealth by then, we will face a crisis where a smaller, struggling workforce has to support a bigger aging population.
The question is: Will we be the country that got old before it got rich? (And that is, if it ever does.)
When a country “gets old before it gets rich,” it gets stuck. Productivity drops, healthcare costs skyrocket, and the “Filipino Dream” becomes a struggle for survival.
How to Not “Miss the Bus”
It is easy to look at the government, the persistent headlines of corruption, or the slow pace of infrastructure and feel like the bus will leave us behind again. We often wait for the system to get its act together before we start our own journey.
But here is the truth: The demographic window is a national event, but the demographic dividend may be a personal one. You cannot control the 2026 National Budget or how the government manages its “sweet spot” opportunities. But you have 100% control over your family’s budget and the ability to apply your own High FQ Design. (I discuss this step by step in FQ Book 3: High FQ By Design (Shape Your Environment For a Financially Healthy You).) If the country fails to maximize this window, you don’t have to fail with it.
To ensure that you and your family will “get rich before you get old,” you must be intentional with your financial life’s design.
1. Articulate where you want to go.
What does your ideal “rich” life look like? What resources do you need to accumulate to get there? Where are you now? Take the FQ Test to know where you stand in terms of this essential skill to achieve your dreams.
2. Design for Autopilot.
In our country, we often deal with “leakages”—whether it’s systemic corruption or just “family tax” (the pressure to support everyone). The best defense is to automate your saving and investing. By the time you see your salary, a portion should have already moved into your saving/investment funds. Some should go to your emergency fund, your dream funds, and your give back fund. This is the only way to ensure your wealth grows faster than the country’s aging rate, your lifestyle cost, and your own age.
3. Always invest in yourself and value integrity.
In order to continuously enhance not only your earning capacity but also your quality of life in general, always find ways to improve your skills and network. This way, you will earn more, save more, invest more, and get closer to achieving your goals. Even as you stay laser focused on your goals, remember to always enjoy the process. Have fun and keep your integrity. We all know that corruption is one of the primary barriers to our country’s development. It works the same way for our personal lives. So, work your way up honestly and take care of the quality of your relationships. In the end, these are the most important ingredients that will help you take advantage of the sweet spot and have a fulfilling life.
The Bottom Line
The government might miss the bus. They might squander this “sweet spot” through inefficiency or lack of foresight. But you have four years until 2030 to solidify your foundation. Don’t wait for the Philippines to become a wealthy nation before you become a wealthy individual or family. Use this window to design a life where you are financially healthy, regardless of the national census. You and I and every Filipino have four years. If we all do what’s supposed to be done to benefit from this sweet spot, then maybe, we can help lift our country from this quagmire of missed opportunities and eventually, build a developed Philippines that we can all be proud of.
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This article is also published in FQMom.com
