The Bangko Sentral ng Pilipinas (BSP) reported on Friday a surge in investors in the Personal Equity and Retirement Account (PERA) a quarter after introducing its digital version.
In a virtual briefing, BSP Governor Benjamin Diokno said the number of Filipinos investing in PERA soared by almost 50 percent.
The number of PERA contributors rose to 2,506 as of December 8, leading to additional investments worth P18.9 million in various PERA products.
“The BSP is seeing early gains after PERA became digital. While figures remain modest, we are confident that the number will continue to grow as more Filipinos are able to access PERA conveniently, anytime, anywhere,” Diokno said.
PERA is a voluntary retirement saving program that supplements the existing retirement benefits from the Social Security System, Government Service Insurance System and employers. It aims to enable Filipinos to live comfortably in their retirement years.
Launched in September, the Digital PERA created a one-stop-shop digital experience for investor education, client onboarding, settlement of transactions and monitoring of these retirement investments.
With this platform, Filipinos can access their PERA account and invest at any time and place by using a mobile gadget. The cost of the online transaction is also cheaper as contributors can send funds through InstaPay and other digital means.
To sustain the growth momentum, Diokno said the BSP was working with various stakeholders to enhance its information campaign on PERA.
“In line with this, the BSP held PERA webinars for overseas Filipinos in Hong Kong, Macau and South Korea in October and November this year. Gladly, our kababayan (countrymen) there showed keen interest iPERA,” he added.
The Bangko Sentral chief also assured investors that the regulator will also engage market participants to expand product offerings and further enhance the digital PERA experience.
“We’ll remain active in promoting financial security and in encouraging more Filipinos to prepare for their later years through PERA,” he stressed.
Diokno added that the central bank is also supportive of the suggestion to revisit the annual maximum contribution in PERA.
“Considering the effect of inflation, there may be scope to adjust the cap upward. This will give Filipinos more flexibility in choosing the right PERA products and better prepare for their retirement,” he said.
The BSP will coordinate with the Department of Finance and the Bureau of Internal Revenue as the proposal will also have fiscal implications, the central bank chief added.
Unlike existing national or corporate pension schemes, PERA does not require a deduction from one’s salary to accumulate funds. Instead, it relies on an individual’s decision to invest up to P100,000 annually.
Overseas Filipino workers are provided the additional benefit of being able to invest twice the normal limit or up to P200,000 annually.