BSP chief wants higher cap on retirement fund contributions
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno wants the cap on equity retirement investments raised as well as a more aggressive information campaign to encourage more Filipinos to prepare themselves financially for their retirement years.
In an online press briefing at the weekend, the central bank chief said the regulator was in discussions with the Department of Finance to see how the limit on contributions to Personal Equity and Retirement Accounts (Pera)—a law that was recently revitalized after being dormant since its enactment over a decade ago—could be increased.
At present, resident Filipinos can invest only up to P100,000 in their Pera accounts, while overseas Filipino workers can do so up to P200,000.
Diokno said the Pera scheme was formalized 12 years ago, and limits imposed then had since been affected adversely by inflation.
On the upside, however, the central bank chief said the number of Filipinos investing in these retirement pension schemes had risen by almost 50 percent just one quarter after the launch of Digital Pera initiative in September this year.
“The BSP is seeing early gains soon after Pera became digital,” he said. “While figures remain modest, the BSP is confident the number will continue to grow as more and more Filipinos are able to access Pera conveniently, anytime, anywhere.”
As of early December, the number of Pera contributors increased to 2,506, and has led to additional investments of P18.9 million in various investment products.
To sustain the momentum, the BSP is working with various stakeholders to intensify its information campaign on Pera. In line with this, the BSP conducted webinars for overseas Filipinos in Hong Kong, Macau and South Korea in October and November this year.
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 sunset years.
The benefits of Pera can now be enjoyed by more Filipinos with the end-to-end digitalization of the Pera environment. Aside from settlement of transactions and monitoring of investments, the digital Pera also serves as a one-stop-shop for investor education and client onboarding. INQ
