Digital PERA enhances retirement savings law: BSP

ABS-CBN News

Posted at Sep 11 2020 11:07 AM

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MANILA - The improved digital Personal Equity and Retirement Account (PERA) platform launched by the Bangko Sentral ng Pilipinas will help Filipinos save for retirement, Gov. Benjamin Diokno said Friday.

At least 80 percent of senior citizens 60 and above have no retirement benefits, Diokno told Teleradyo. 

The digital PERA platform is an "enhancement" of the PERA law which was signed in 2008. By going digital Filipinos can have access to their accounts 24/7. Even overseas Filipinos can invest, Diokno said.

"Ang objective nito ay bigyan ng pagkakataon ang ating mga kababayan na makapag-subi naman for their retirement... Magandang batas ito na natulog... Ang role ng BSP ay i-enhance natin ito," Diokno said.

(The objective is to give Filipinos a chance to save for their retirement. This is a great law that has been idle. The BSP's role is to enhance it)

Those interested to open PERA accounts can reach out to partner banks and insurance companies, Diokno said.

The financial instrument is fit for retirement savings since it cannot be withdrawn until after the policy holder turns 55 or in select circumstances, he said.

Interest or returns, Diokno said, would depend on the investor's risk appetite. The amount of savings will depend on the consumers' preference, he said. 

Diokno said the program's target was to reach at least 5 million Filipinos within 5 years.