45 Responses to “PERA Facts: Personal Equity and Retirement Account Philippines”


  1. melanie says:

    Thanks Fits for this one! I’m also on a “stand-by” mode for PERA since 1st quarter of 2009. I hope the govt would make it available very soon.

  2. Cris says:

    May I ask how much the earning potential of PERA, hows the profits computed? I’m looking forward to invest on this too

  3. Fitz says:

    @melanie
    Yes, a lot of people I know are really excited for PERA and have already set aside money for it since last year.

    @Cris
    Earning potential depends on what product you will choose.

    Your administrator and custodian will ideally give you an assessment test to determine if you should invest in conservative, moderate or aggressive products. They should also be able to explain to you how exactly you will earn from it.

    But if you want an idea, you can research on the performance of UITFs and Bond Funds for the past years. I expect the products that will be available to PERA will have very similar performance and earning potential.

    Lastly, it’s important to realize that PERA products will not make you rich. It will however, at the very least, ensure that you will have a comfortable and sustainable lifestyle when you retire at 55.

  4. mildie says:

    I actually inquired about PERA last year from my bank, and they still do not know anything about it… I’m glad you posted this. Hope you can post more info about it when it does take effect… I also set aside money for this.

  5. Very informative post. I would study this PERA in the future. Thanks.

  6. Jean says:

    Hi! I’m happy to know that we have this bill which is very similar to HSA (health savings accounts) in the U.S. The only difference is PERA focuses more on retirement savings while HSA is a combination of a tax-favored savings plus a qualifying health insurance. It would be better if PERA also allows us to deposit tax-deductible funds into this account that we can use to cover medical costs and help save 40%-50% on our health insurance. This way, every Filipino can have health insurance plus retirement savings!

  7. Jaze says:

    Wow, thank you so much for this!

    I do hope PERA could be implemented soon. I honestly believe that SSS is not enough.

  8. masinopinoy says:

    Thanks Fitz for the info. Have you started investing through this scheme or do you know someone who have opened a PERA account? I am asking this because I need some clarification regarding investment costs when one decides to invest his money through PERA. PERA is really a good opportunity for Filipinos to build a retirement fund due to the tax advantages (zero tax on income, 5% tax certificate). However, I find it too bureaucratic because one investor needs to deal with several agencies (Administrator & Custodian). Another issue linked to bureaucracy is cost. Investment cost will most likely increase since there will be additional layer of management. For example, if a person invest in mutual fund outside of PERA today, the cost would oly be the admin fee of around 2-4% being charged by the investment company, but when that person invest through PERA, admin cost would range 4-8% if the new player (the Administrator) will charge the same amount of admin fee. Please help shed light on this.

  9. Marie says:

    Hi, I heard about this PERA thing a few months ago and was very interested. It’s just sad that the implementation of this act is taking too long. Anyways, I’m looking forward for this to be offered to the public very soon.

  10. Hannah says:

    Any updates on this now?

  11. chol says:

    Hi, is this already implemented?

  12. Henry Chua says:

    Hi Fitz,

    Just want to ask if PERA is already available? Have you invested already? Please let me know. Thanks.

  13. Fitz says:

    Hi Henry, unfortunately, PERA is still unavailable. Hopefully, it will be soon.

  14. Can a juridical person apply as Contributor for PERA? I looked at the definition of “Contributor” and it states any person qualified to enter into a contract and has the TIN. The law is silent in including juridical persons having a TIN number. I am hoping if you can clarify me on this matter. Thank you.

  15. […] can be designed and accordingly adjusted to fit your financial capabilities. Products such as the Personal Equity and Retirement Account are even voluntary, which means you “spend” only what you can […]

  16. Joel says:

    I just want to point out a mistake in this post. You have confused tax credits with tax deductions. Tax credits are not deducted from the gross income but these are subtracted from the tax due itself. There’s a big difference!

  17. Fitz says:

    Thanks Joel for pointing out the mistake, I have now made the necessary corrections.

  18. Lianne says:

    Hi kuya Fitz, any update on PERA?

  19. Fitz says:

    Hi Lianne… still no updates, sorry.

  20. Cha says:

    Hi! Any update on PERA?

  21. frugal expat says:

    hi Fitz,

    I am researching about PERA and quite intrigue about it. it is nice to investment na hindi taxable though at age 55 pa. Do you have any new update sa PERA?

    Ask ko pala, you mention that you will choose your administrator and custodian. Do you have any idea how much will the fee?

    Thanks

  22. Fitz says:

    @frugal expat
    I tried to search in the past couple of days and it seems there’s still no significant update regarding PERA.

    As for the admin or custodian fee, I also don’t have any idea how much it will be. The couple of bank managers (in BPI and BDO) whom I was able to talk to, both don’t even know what PERA means.

    So I guess we don’t have a choice now but to just wait… for the next president perhaps? Haha.

    Let’s just hope for the best that this will be implemented soon.

  23. Fitz says:

    An update on this:

    My bank manager just informed me today that she’s expecting details regarding the status of PERA very soon (as advised by their main office). I’ll surely write here any information that she’ll get. Thanks.

  24. Dennis says:

    Can you have PERA account without a custodian? parang self-direct IRA sa US. Hope my updates na 🙂

  25. workhorse says:

    Hi!

    Any updates on PERA (e.g. admin fee, investment costs, etc)?

    Thank you very much!

  26. Tito Wee Sit says:

    I reside in Illinois, USA.

    Can I open an account at the office of the Consult General in Chicago?

    Tito

  27. Bob says:

    Any news on the implementation of PERA?

  28. Look says:

    I think wala pa. Pero I found this on the PSE site.

    http://pse.com.ph/resource/memos/2013/TPA_2013-0052.pdf

    Atleast there’s a progress.

  29. Bob says:

    @Look Thanks.

  30. dennis tomboc says:

    hi fitz,

    can u please up this blog and give us any updates…

  31. Fitz says:

    Hi Dennis. Yes, I’ll definitely blog about updates on this one very soon.

  32. […] can check out my primer about the PERA Law here to learn […]

  33. Look says:

    They featured PERA in ANC on the money a week or two ago. They’re targeting to launch it Q3 of 2014.

  34. I read a few articles about the PERA law and I don’t understand the difference between the PERA and Mutual Funds. Asides from the tax benefits, the investment vehicle is similar to mutual funds, UITF, or VUL. I also noticed that you’ll get penalized in case you withdraw your funds before 55. Isn’t that a huge disadvantage compared to the investment vehicles I mentioned? Won’t the there be additional fees like what masinopinoy mentioned? Anyway do you have any updates on this? I am really interested in learning the difference between this and other investment vehicles.

  35. CARivero says:

    Hi Fitz, any updates for this one? Thanks

  36. Ernie Batrde says:

    Is this PERA saving plan, those younger age group only are qualified to avail ? How about those individual who is already more than 55 yrs. old and still interested to invest on this kind of saving plan are they can’t avail anymore?

  37. Blessilda V.Calipusan says:

    Is PERA now launched? Where can we invest?

  38. Anna says:

    Hi i just read your article and check the bpi website already have this and im planning to open once i got home this year. My question is.. Is it really safe?

  39. Are these like government bonds wherein the interests are guaranteed? I’m just wondering if PERA is a better investment vehicle vs long-term stock investing (15 years or more) since I’ll be 55 after 15 years? 🙂

  40. […] first wrote about PERA back in 2010 and you can read there the updates it went through in the past 6 years. But for those who’s reading about PERA for the first […]

  41. […] PERA Facts: Personal Equity and Retirement Account Philippines […]

  42. nard says:

    hi fritz what is 5% income tax credit in PERA?

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