Arthur Fuentes

Article (news)

Jekki Pascual

ABS-CBN News

MANILA (UPDATED) — The Bangko Sentral ng Pilipinas is urging Filipinos to plan their retirement ahead of time, asserting that the monthly pension of the Social Security System (SSS) or the Government Service Insurance System (GSIS) is not enough.BSP Finance Supervision Department Senior Director Jose Recon Tano said the public may consider the PERA program, which stands for Personal Equity and Retirement Account.“Average monthly pension for SSS is less than P5,000 and then for the GSIS pensioners, mababa rin less than P14,000. Yung monthly pension nakukuha mo most likely hindi sapat matustusan pangangailangan mo pag nag retire ka,” said Tano.PERA is a voluntary retirement savings program that supplements the existing retirement benefits of SSS or GSIS. This is open to those at least 18 years old and has a Tax Identification Number.An individual can contribute any amount with a maximum annual contribution of P200,000, while Overseas Filipinos can contribute up to P400,000 per year. Contributions can be invested in various investment products like shares of stock, mutual funds, insurance pension products, government securities, exchange-traded bonds, and more.“Yung kita mo hindi nababawasan ng tax. Yung kita mo this year, kikita ulit next year. Over time, [the] power of compounding [interest] mas mabilis ang paglago ng pera,” Tano added.A member can withdraw all his or her contributions tax-free upon reaching the age of 55 years old and if he or she has contributed for at least five years. Member, however, may still withdraw even without fulfilling the requirements, subject to withdrawal penalties.Aside from tax-free earnings, contributors will also get a 5 percent tax credit, which can be used to pay for income tax liabilities.BSP now urges companies to join the Employee-Sponsored Program. This will allow PERA to be offered to employees, and employers will also contribute. Companies will also get tax incentives.“For the employers, you can claim up to 150 percent of your contributions as tax deductions. Dati 100 percent lang,” Tano said.BSP Governor Eli Remolona Jr. also called on employers to join the PERA program for the benefit of employees and the companies as well.“For employers, PERA is a way to enhance benefits and improve hiring, retention and performance… You can be a catalyst for signing up employees across the country,” Remolona said.To apply for a PERA account, one can check the six accredited PERA administrators, such as ATRAM, BDO, BPI Wealth, DragonFi, Luna Securities, and Zalamea.Tano reminds Filipinos to start planning for the future at a young age, and this PERA is a good way to start. “Isang common misconception retirement planning starts when you retire, but actually retirement planning starts when you go to the workplace.”

PERA is a voluntary retirement savings program that supplements the existing retirement benefits of SSS or GSIS.

PERA is a voluntary retirement savings program that supplements the existing retirement benefits of SSS or GSIS.

BSP says ​PERA to complement SSS, GSIS pensions

News

Entertainment

Lifestyle

Sports

Metro.Style

More

BINI

Sudoku

Word of the Day

Lotto

Horoscope

Business

BSP says ​PERA to complement SSS, GSIS pensions

Jekki Pascual,

ABS-CBN News

Published July 09, 2026 05:41 PM PHT

|

Updated July 11, 2026 10:23 PM PHT

Read More:

PERA

pesonal equity and retirement account

pension

retirement

GSIS

SSS

ABS-CBN Newsletter

Your go-to source for the latest news, entertainment highlights, exclusive interviews, and updates on your favorite Kapamilya stars.

ABS-CBN Newsletter

Your go-to source for the latest news, entertainment highlights, exclusive interviews, and updates on your favorite Kapamilya stars.

Sign Up

I have read and agree to the Terms and Privacy Policy.

Haven't received our newsletter?

Check your inbox to verify and confirm your subscription.

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

Corporate

Investors

Governance

International Distribution

Corporate

Governance

Investors

International Distribution

NPC Seal of Registration

Privacy Policy

AI Policy

Terms of Service

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

BSP says PERA to complement SSS, GSIS pensions

BSP says PERA to complement SSS, GSIS pensions