Arthur Fuentes

Article (news)

Jekki Pascual

ABS-CBN News

MANILA — 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 ​SSS, GSIS pensions not enough; urges workers to invest in PERA

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BSP says ​SSS, GSIS pensions not enough; urges workers to invest in PERA

Jekki Pascual,

ABS-CBN News

Published July 09, 2026 05:41 PM PHT

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Updated July 09, 2026 06:10 PM PHT

Read More:

PERA

pesonal equity and retirement account

pension

retirement

GSIS

SSS

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BSP says SSS, GSIS pensions not enough; urges workers to invest in PERA

BSP says SSS, GSIS pensions not enough; urges workers to invest in PERA