BSP encourages pinoys to save for retirement through PERA

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The Bangko Sentral ng Pilipinas (BSP) encourages Filipinos to take full advantage of the benefits offered under the Personal Equity and Retirement Account (PERA).

“Compared to other retirement and investment products, PERA provides contributors or investors exclusive tax benefits which enable them to accumulate their retirement savings at a faster pace,” according to BSP Governor Benjamin E. Diokno.

Income earned from PERA investments is exempted from final withholding, capital gains and regular income tax. PERA contributors are also entitled to a five percent tax credit on contributions for the year that can be used to pay or lower annual income tax due; while qualified PERA withdrawals are not subject to taxes.

In addition, in case of the death of the contributor, the PERA asset will be released to the beneficiaries without paying estate tax.

The digitalization of PERA has 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.

“Digital PERA has significantly reduced processing time and transaction cost. Account opening is simpler as only a valid ID and tax identification number are required to open an account,” the Governor explained.

As of end February 2022, total PERA contributions amounted to P265.5 million. The bulk or 71 percent of PERA contributors are employees while the rest are self-employed individuals and overseas Filipinos.

Moving forward, the BSP will continue to conduct public information campaign and collaborate with various stakeholders such as industry organizations and advocacy groups, to expand the PERA ecosystem.

“As we transition into the post-COVID-19 economy, we hope more Filipinos, especially our kababayans abroad, will be able to participate in PERA,” Governor Diokno said.

To know more about PERA, you may visit the BSP PERA microsite at