Updated: September 19, 2020
PERA or the Personal Equity and Retirement Account is an investment specifically designed to build your retirement fund. It’s been available since early 2018.
I actually already invested in PERA through BPI when they offered it because it was more convenient for me to open the account with them.
But apart from BPI, the one other financial institution currently accredited to be an Administrator is Banco De Oro or BDO.
In the beginning, BDO only offered it to select clients. But now, it’s available to everyone. Even better, you can now open a PERA account online through BDO Invest Online.
Who can invest in PERA?
Any interested PERA Contributor should:
- Be a Filipino Citizen
- Be 18 years old and above
- Have Tax Identification Number (TIN)
- Have attended the required BDO PERA Seminar
- Have a BDO Current/Savings Account
- Bring photocopy of 2 valid IDs, and
- Have a copy of latest Income Tax Return (ITR) on hand as reference for the Employer’s TIN and Employer’s Name
Why invest in PERA?
As an investor or contributor, you will receive the following benefits through PERA:
- Income earned is tax exempt;
- Annual contributions are eligible to a 5% tax credit, subject to issuance of BIR regulation;
- Upon reaching 55 years of old and have made at least 5 years of contributions, withdrawals from the investment are not subject to income tax; and
- In the event of the untimely demise of the Contributor, the PERA funds are not subject to estate taxes.
Where will the money be invested?
When you open a PERA account with BDO, you will choose where your money will be invested. Currently, the available choices are their UITF products. Particularly:
- BDO PERA Short Term Fund (conservative)
- BDO PERA Bond Index Fund (moderate)
- BDO PERA Equity Index Fund (aggressive)
I’ve already maxed out the P100,000 limit for an individual account this year, which I made through BPI. So, my next opportunity to add to my PERA account is when the new year comes, and I plan to invest through BDO this time.
However, please note that if you’re living or working overseas (OFWs), then you can invest up to P200,000 per year; and not just P100,000 like me.
Also, you don’t have to invest that much amount. You can choose a smaller amount and voluntarily add to it as you have more cash available to you.
If you’re interested to learn more about BDO Personal Equity and Retirement Account, then you can visit the BDO website.
To learn more about PERA, you can read the primer I wrote before: PERA Facts: Personal Equity and Retirement Account