In a bid to bolster financial security for Filipinos, the Bangko Sentral ng Pilipinas (BSP) and the Trust Officers Association of the Philippines (TOAP) recently emphasized the importance of smart retirement investments at the Personal Equity and Retirement Account (PERA) forum held at the BSP head office in Manila.
Invest wisely, Filipinos urged
With the theme “Investing for Your Retirement: Advancing Financial Security through PERA,” the forum brought together industry leaders, financial experts, and government officials to discuss how the PERA initiative empowers individuals to build substantial retirement funds while benefiting from tax incentives.
This timely conversation comes as the country grapples with the growing need for sustainable financial strategies in an increasingly uncertain economic landscape.
In a media advisory, BSP Deputy Governor Eduardo G. Bobier highlighted the critical role PERA plays in supporting Filipinos to achieve financial freedom, allowing them to enjoy comfortable lives during their retirement years. “PERA is more than just a savings plan; it is a key to unlocking financial independence for Filipinos. By leveraging this tool, our citizens can pave the way toward a more secure and fulfilling retirement,” Bobier stated.
Bobier also pointed out that PERA serves as a pilot use case for the BSP’s Open Finance initiative. This groundbreaking approach is set to transform the way Filipinos manage their finances by seamlessly linking their bank accounts with various financial service providers.
Such integration will empower individuals to make informed financial decisions with greater convenience and efficiency, further enhancing their financial planning capabilities.
Proactive financial planning for retirement
Meanwhile, BSP Deputy Governor Chuchi G. Fonacier stressed the urgency of proactive financial planning for retirement. She urged Filipinos to develop disciplined savings habits and to be mindful of inflation when crafting their retirement investment strategies. “It is not just about setting aside money; it is about ensuring that your savings grow and retain their value over time. This requires careful planning and a clear understanding of the financial landscape,” Fonacier advised.
Fonacier also acknowledged the collaborative efforts of BSP’s partner agencies — including the Securities and Exchange Commission, Insurance Commission, Bureau of Internal Revenue (BIR), and Department of Finance — in making PERA more accessible and affordable for the general public. Their combined efforts have streamlined the investment process, making it easier for Filipinos to participate in this vital program.
TOAP President Christiane B. Alonzo-Velasco echoed the sentiments of the BSP leaders, underscoring the importance of having a clear and detailed vision of one’s retirement goals. “Planning for retirement is a journey that requires foresight and action. The earlier you start, the better positioned you will be to achieve your retirement aspirations,” Alonzo-Velasco noted.
The forum also featured insights from other prominent speakers, including BIR Deputy Commissioner Maridur V. Rosario, BSP Senior Director Jose Recon S. Tano, Wealth Arki and Consultancy Inc. Chief Financial Planner Fitz Gerald Villafuerte, and ATRAM Group Chief Executive Officer Michael V. Ferrer. They delved into various aspects of retirement planning, such as the mechanics of investing in PERA, the role of administrators, and the latest trends in PERA adoption among Filipinos.
One of the key takeaways from the forum was the critical need for individuals to incorporate inflation considerations into their retirement strategies. With the cost of living expected to rise over time, it is essential for retirement savings to not only grow but also to preserve purchasing power.
The forum also revisited the basics of financial planning, emphasizing the importance of setting realistic goals, maintaining disciplined savings habits, and regularly reviewing and adjusting one’s investment strategy to align with changing economic conditions.
In a similar forum held at the central bank’s head office, the BSP also highlighted the critical role of digitalization in enhancing bank operations. “Rural banks can be a linchpin for inclusive growth; hence, preserving their role and building up their strengths are crucial,” stated BSP Governor Eli M. Remolona, Jr. during the Rural Bank Strengthening Program (RBSP) Technology and Innovation Forum held in June this year.
PERA, established under Republic Act No. 9505, is a voluntary retirement savings program designed to supplement existing state-based pension plans and employer-sponsored retirement plans. It offers a flexible and advantageous option for Filipinos seeking to secure their financial future.
For more information about PERA and how it can help you achieve your retirement goals, visit the BSP’s official website.