Go mulls higher PERA savings cap for Filipinos

The government is considering changes to the country’s voluntary retirement savings program, including higher contribution limits and simplified rules, to encourage more Filipinos to build financial security for their retirement years.

Finance Secretary Frederick Go said the Department of Finance (DOF) is reviewing possible improvements to the Personal Equity and Retirement Account (PERA) program, particularly its annual contribution ceilings, to make long-term savings more accessible to Filipino workers and overseas Filipinos.

Under existing rules, regular contributors can set aside up to ₱200,000 annually, while overseas Filipino workers (OFWs) are allowed to contribute as much as ₱400,000 a year.

Go is also considering a uniform annual contribution limit to simplify the system and promote greater equity among participants.

The review will take into account changes in income levels, financial requirements and prevailing economic conditions, while exploring policy and regulatory adjustments to address barriers that have discouraged wider participation.

Established under Republic Act No. 9505, or the PERA Act of 2008, the program allows eligible individuals to invest in approved financial products while enjoying tax incentives, subject to applicable regulations.

It is designed to supplement retirement benefits from the Social Security System (SSS), Government Service Insurance System (GSIS) and other pension programs.

The DOF is also seeking recommendations from financial institutions, investment firms, employers, labor organizations, pension providers and other stakeholders on ways to make PERA more attractive and beneficial.

Go said the objective is to strengthen the program’s incentives, expand participation in long-term investments and encourage more Filipinos to prepare financially for retirement.

The proposed adjustments remain under study, with the finance department yet to announce specific changes or an implementation timetable.