BSP doubles maximum contribution to retirement savings program, scraps deposit security for adminsitrators

By Eileen Mencias

The government has taken steps to encourage more Filipinos to prepare for retirement through the Personal Equity and Retirement Account (PERA) program.

The Bangko Sentral ng Pilipinas (BSP) has doubled the maximum annual contribution to PERA and removed the basic security deposit for PERA administrators, according to a statement released by the BSP.

The annual limits have been raised to P200,000 from P100,000 for locally employed and self-employed individuals and to P400,000 from P200,000 for overseas Filipino workers, effective immediately.

The BSP hopes the increase in limits will provide Filipinos with greater opportunities to ensure their financial security and support the government’s efforts to mobilize individual savings for capital market development and generate funds for long-term projects.

PERA is a voluntary retirement savings program launched in 2016 that supplements state-based pension plans and employer-sponsored retirement plans.