Manila:Finance Secretary Frederick Go is seeking to implement improvements to the Personal Equity and Retirement Account (PERA) program, aiming to motivate more Filipinos to save for their retirement.

According to Philippines News Agency, Go is considering adjustments to the existing annual contribution limits of the PERA program. The objective is to determine how these adjustments can enable contributors to allocate more funds towards retirement savings. Moreover, Go is contemplating the establishment of a uniform annual contribution limit to simplify the rules and foster greater equity among contributors.

Currently, regular contributors can contribute up to PHP200,000 annually, while overseas Filipino workers are permitted to contribute up to PHP400,000 each year. The review process will also explore other policy and regulatory enhancements to overcome participation barriers, boost program awareness, and improve its overall effectiveness.

The PERA program is a voluntary retirement savings scheme that allows eligible individuals to invest in approved financial products while availing tax incentives, under certain rules. It is designed to complement retirement benefits from the Social Security System (SSS), Government Service Insurance System (GSIS), and other programs.

Stakeholders from various sectors, including finance and investment, employers, labor groups, and retirement institutions, are invited to provide their suggestions on enhancing the accessibility, utility, and appeal of the PERA program for Filipino workers, overseas Filipino workers, and other eligible contributors.

"Our goal is to make PERA a more effective tool for helping Filipinos prepare for retirement. We welcome stakeholder recommendations on how to improve the program, strengthen its incentives, and encourage more people to build long-term savings," Go stated.