Pag-IBIG MP2 vs SSS PESO Fund: Which is Better?

Posted by under General Information, In Focus, Investing . Published: December 13, 2018

Which is a better investment, the Pag-IBIG MP2 or the SSS PESO Fund? That’s a question a reader recently asked me and that’s what we’ll try to compare and analyze today.

Pag-IBIG MP2 and SSS PESO Fund are both government savings programs offered to their respective members. The hope is to encourage more Filipinos to save and invest, especially for their retirement.

But first, if you’re not familiar with any of these, then here are some facts about each savings program.

Pag-IBIG MP2

The MP2 Savings Program is a voluntary savings program for members who wish to save more and earn higher dividends than the regular Pag-IBIG Savings Program.

This is open to all active Pag-IBIG Fund Members. And also open to former Pag-IBIG Fund Members with a monthly source of income, including pensioners, regardless of age.

To sign up for Pag-IBIG MP2, you need to submit your duly accomplished MP2 Savings Application Form at a Pag-IBIG Fund Branch, along with a Valid Identification Card and the Passbook or ATM Card of your nominated bank account.

SSS PESO Fund

The SSS P.E.S.O. Fund (Personal Equity and Savings Option) is a voluntary provident fund offered exclusively to SSS members in addition to the regular SSS program.

This is open to all employees, self-employed (SE), voluntary (VM), and OFW members who have met the following qualifications:

  • Below 55 years of age;
  • Have paid contributions in the regular SSS program for at least six (6) consecutive months within the 12-month period immediately prior to the month of enrollment;
  • SE, VM, and OFW members should be paying the maximum amount of contributions under the regular SSS program;
  • Have not filed any final claim under the regular SSS program.

To join and invest in the SSS PESO Fund, you can enroll over-the-counter at any SSS branch. You may also register via the My.SSS web site under the “e-services” tab.

Similarities between Pag-IBIG MP2 and SSS Peso Fund

  • They’re both an optional savings program.
  • Your investments are tax-free.
  • They are guaranteed by the Philippine government. This means there’s zero-risk of losing money.
  • Aside from local workers, both are also open to OFWs, as long as they’re regular members.
  • They both earn higher interest rates than an ordinary bank savings account.
  • Invest only when you want. It’s not required to invest monthly. You can just invest one-time if you want.
  • Contributions can be set up as an automatic salary deduction for those locally employed.
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Pag-IBIG MP2 vs SSS PESO Fund

Now let’s see the important differences between the two programs.

Pag-IBIG MP2
SSS PESO Fund
Age LimitNo age limit55 years old
Minimum InvestmentPhp 500Php 1,000
Maximum InvestmentNo limitPhp 100,000 per year
Historical Growth4.58% to 8.11% per year1.85% to 3.75% per year
Number of Accounts You Can OpenNo limitOne account only
Withdrawal (Other terms apply)All after 5 years, with option to renew for another 5 yearsMaximum of 35% after 5 years, then all the rest at age 60 or upon retirement / total disability

So which is better?

As always, the better investment depends on your financial goals.

However, it looks like that the Pag-IBIG MP2 has more advantages than the SSS PESO Fund because it has easier eligibility, better contribution requirements, higher past performance, and less restrictions.

The Pag-IBIG MP2 is a good investment for most medium and long-term financial goals. While the SSS PESO Fund is more designed for people seeking a low-risk investment for their retirement fund.

Furthermore, do consider which among the two programs would be more convenient for you to open and manage. Learning about Pag-IBIG MP2 and SSS PESO Loan is just the first step. Actually opening an account is your next move.

Lastly, if you want to learn more about these programs, then you can read and download the FAQ PDFs here or contact them directly.

Pag-IBIG Fund Contact Details:
Email: contactus@pagibigfund.gov.ph
Phone: (+632) 724-4244
Website: www.pagibigfund.gov.ph

SSS Contact Details:
Email: member_relations@sss.gov.ph
Phone: (+632) 920-6446 to 55
Website: www.sss.gov.ph

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3 Responses to “Pag-IBIG MP2 vs SSS PESO Fund: Which is Better?”


  1. Ram Gustilo says:

    Thanks a lot for this article sir Fritz. As always, you’ve been an excellent source for my literacy on personal finance since 2010 🙂 God bless you always!

  2. Ram Gustilo says:

    Thanks a lot for this article sir Fitz. As always, you’ve been an excellent source for my literacy on personal finance since 2010 🙂 God bless you always!

  3. Very Informative SIR FRITZ.GOD BLESS.

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