PERA (Personal Equity and Retirement Account) is PHL's voluntary tax-advantaged retirement savings account, established by RA 9505.
Tax benefits (3 stages):
1. 5% tax credit on contributions
2. Tax-exempt growth of investments inside PERA
3. Tax-exempt withdrawal at age 55+
Contribution limit:
- ₱100,000/year (regular Filipinos)
- ₱200,000/year (OFWs)
Investments allowed: PERA-eligible mutual funds, UITFs, government securities.
Providers: BPI Wealth, BDO Trust, Sun Life, Manulife, ATR, COL Financial, others.
What it means for you:
- Massively underutilised in PHL — start one even with small contributions
- Combine with SSS (mandatory) for full retirement strategy
- Best ROI for long-horizon savings (compound growth + tax benefits)
- Multiple PERA accounts allowed (up to 5)
- Withdraw before 55 = lose tax benefits + repay credits