Unlocking retirement security: How PERA and CMEPA empower Filipinos to save smarter

How prepared are you for retirement? For many Filipinos, saving for the future often takes a backseat to daily expenses.

- KRISTINA PAULINE GUTIERREZ

Recognizing this challenge, Republic Act 9505 or the Personal Equity and Retirement Account Act of 2008 was enacted to give Filipinos a tax-efficient option to build long-term financial security. PERA is a voluntary retirement savings account set up by individuals (contributors) for their exclusive use and benefit.

A contributor may open and maintain up to five PERA accounts at any given time, provided that only one administrator is designated to oversee all accounts. A contributor, who is a non-Overseas Filipino, may contribute up to P200,000 annually, while an overseas Filipino may contribute up to P400,000 per year. The Act establishes a legal framework that promotes financial security by encouraging Filipinos to build their own retirement savings through voluntary contributions.