As the Philippines approaches upper middle-income status, widening gaps in old-age income security have renewed interest in universal pensions. This Policy Note examines whether the country can transition toward a universal old-age pension in a fiscally sustainable manner. It notes that despite the substantial reach of the existing targeted Social Pension program, vulnerabilities remain, driven primarily by pervasive informality and limited contributory pension coverage. Drawing on international experience, this Note recommends gradual, age-phased expansion, modest initial benefit levels, and a layered system that complements contributory schemes. It argues that careful sequencing and sustainable financing are essential given tight fiscal space and elevated public debt.
