Finance Secretary Frederick Go is looking at improvements to the Personal Equity and Retirement Account (PERA) program to encourage more Filipinos to save for retirement.
In a statement on Tuesday, the Department of Finance (DOF) said Go is looking into examining adjustments to the current annual contribution limits to determine how these could enable contributors to set aside more money for retirement.
Go is likewise eyeing to establish a uniform annual contribution limit to simplify rules and promote greater equity.
At present, regular contributors may contribute up to PHP200,000 annually, while overseas Filipino workers are allowed up to PHP400,000 per year.
The review will also consider other policy and regulatory improvements that could address barriers to participation, strengthen awareness of the program, and enhance its overall effectiveness.
PERA is a voluntary retirement savings program that allows eligible individuals to invest in approved financial products while receiving tax incentives, subject to applicable rules.
It aims to supplement retirement benefits from the Social Security System (SSS), Government Service Insurance System (GSIS), and other programs.
Stakeholders from the financial and investment sectors, employers, labor groups, retirement and pension institutions, and other relevant organizations are encouraged to submit their inputs and recommendations on how to make PERA more accessible, beneficial, and attractive to Filipino workers, OFWs, and other eligible contributors.
“Our goal is to make PERA a more effective tool for helping Filipinos prepare for retirement. We welcome stakeholder recommendations on how to improve the program, strengthen its incentives, and encourage more people to build long-term savings,” Go said. (PNA)