PERA contributions rise 24% in 2024

MANILA, Philippines — Voluntary retirement contributions rose by 24 percent to P491.39 million in 2024 from P396.31 million in 2023, as Filipinos prioritized savings amid economic uncertainties and rising living costs, according to the Bangko Sentral ng Pilipinas.
Data from the BSP showed the number of contributors to the Personal Equity and Retirement Account (PERA) stood at 5,912 as of December 2024, 6.4 percent higher than the 5,555 a year ago.
Broken down, 4,211 employed individuals contributed P341.75 million to the fund as of end-2024, followed by 789 overseas Filipino workers (OFWs) with P82.25 million and 912 self-employed individuals with P67.39 million.
John Paolo Rivera, senior research fellow at the Philippine Institute for Development Studies, said the increase in PERA contributions last year reflect a growing awareness among Filipinos about the value of retirement planning, despite the relatively low number of participants.
“More Filipinos, especially the employed sector, are recognizing the need to secure their retirement, given economic uncertainties and the rising cost of living,” he said.
“Efforts by the BSP, financial institutions, and employers to promote PERA and educate workers on its tax incentives and long-term benefits may be gaining traction,” he added.
According to Rivera, certain groups like OFWs and employed professionals have more financial flexibility to set aside funds for retirement. Some workers may also be looking for alternative or supplemental retirement income sources.
“However, the number of contributors remains relatively low, indicating that challenges such as low savings capacity, financial literacy gaps and competing short-term financial needs still hinder broader participation. To encourage more Filipinos to save for retirement, stronger incentives, wider promotion and employer-driven contributions could be explored,” he said.
Created under Republic Act 9505, PERA is a voluntary retirement savings program that supplements state-based pension plans from the Social Security System and the Government Service Insurance System, as well as employer-sponsored retirement plans.
The BSP introduced PERA in 2016 with support from the financial industry. Administrators include ATRAM Trust Corp. BDO Unibank and BPI Asset Management and Trust Corp.
Starting 2023, contributors aged 18 and above who are employed locally or self-employed are allowed to make a maximum annual investment of P200,000 in their PERA accounts, double the previous P100,000.
Meanwhile, OFWs are allowed to invest up to P400,000 a year from P200,000 previously. Each individual can have a maximum of five PERA accounts.
The BSP also encourages Filipinos to take full advantage of the benefits offered under PERA, including the exemption of earnings from taxes on final withholding, capital gains and regular income.
PERA contributors are also entitled to a five percent tax credit on contributions for the year that can be used to pay national income tax liabilities. Qualified PERA withdrawals are not subject to taxes.
When a contributor reaches 55 years old and an investment period of at least five years, he or she can redeem the PERA investment free of taxes.
The number of contributors rose sharply when Digital PERA was launched in September 2020. Digital PERA is an online one-stop shop where investors can conveniently open an account, browse various PERA products, monitor their PERA accounts, and settle transactions via InstaPay and PESONet.
The digitalization of PERA also enabled Filipinos here and abroad to conveniently open an account, invest in different PERA products and access their PERA investments using mobile devices at any time.
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