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The Bangko Sentral ng Pilipinas (BSP) reported on Friday an increase in investors in the Personal Equity and Retirement Account (PERA) a quarter after presenting its digital version.
In a virtual briefing, BSP Governor Benjamin Diokno said that the number of Filipinos investing in PERA soared by nearly 50 percent.
The number of PERA taxpayers increased to 2,506 as of December 8, which generated additional investments for a value of 18.9 million pesos in various PERA products.
“The BSP is making early gains after PERA went digital. While the numbers remain modest, we are confident that the number will continue to grow as more Filipinos can access PERA conveniently, anytime, anywhere, ”Diokno said.
PERA is a voluntary retirement savings program that complements existing retirement benefits from the Social Security System, the Government Services Insurance System, and employers. Its goal is to allow Filipinos to live comfortably into their retirement years.
Launched in September, Digital PERA created a comprehensive digital experience for investor education, client onboarding, transaction settlement, and tracking of these retirement investments.
With this platform, Filipinos can access their PERA account and invest anytime, anywhere using a mobile device. The cost of the online transaction is also cheaper, as taxpayers can send funds through InstaPay and other digital means.
To maintain the growth momentum, Diokno said that BSP was working with various stakeholders to improve its information campaign on PERA.
“In line with this, the BSP held PERA webinars for foreign Filipinos in Hong Kong, Macao, and South Korea in October and November this year. With great pleasure, our Kababayan (compatriots) showed great interest in iPERA, ”he added.
The head of Bangko Sentral also assured investors that the regulator will also engage market participants to expand the product offering and further enhance PERA’s digital experience.
“We will remain active in promoting financial security and encouraging more Filipinos to prepare for their final years through PERA,” he emphasized.
Diokno added that the central bank also supports the suggestion to review the maximum annual contribution in PERA.
“Considering the effect of inflation, there may be room to adjust the cap upwards. This will give Filipinos more flexibility to choose the right PERA products and better prepare for retirement, ”he said.
The BSP will coordinate with the Finance Department and the Internal Revenue Office, as the proposal will also have fiscal implications, the central bank chief added.
Unlike existing national or corporate pension plans, PERA does not require a salary deduction to accumulate funds. Instead, it is based on an individual’s decision to invest up to P100,000 annually.
Filipino workers abroad receive the added benefit of being able to invest twice the normal limit or up to P200,000 per year.
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