PERA: Personal Equity and Retirement Account

What it is

PERA (Personal Equity and Retirement Account) or also known as RA 9505 (PERA Act of 2008) promotes capital market development and savings mobilization in the Philippines. It is a voluntary and personal account, established by any person with the capacity to contract and possesses a Tax Identification Number (TIN), for the purpose of being invested solely in PERA investment products.

What it is


PERA’s objective is to promote capital market development and savings mobilization, to contribute to long-term fiscal sustainability through the provision of long-term financing, and to reduce the need for social pension benefits. You may use PERA to slowly build up additional funds which you may use upon retirement, even if you are employed and are entitled to receive retirement benefits from your employer.


Who Can Apply

An individual who (1) has the capacity to contract and (2) possesses a Tax Identification Number (TIN)

Who can apply

How to Join

  • Choose an authorized administrator. E.g. BPI or BDO
  • Visit one of their major branches
  • Choose custodian and an investment
  • Custodian will receive your contribution
  • Contribution will be put in chosen investment.
How to join

How to Contribute

  • Open a PERA account in “Bank A” (administrator). Assign “Investment Manager B” as your custodian. Choose “Mutual Fund C” (investment product).
  • Your money will be received by Investment Manager B and put it in Mutual Fund C. Any question or concern about your PERA account, you simply contact Bank A for information and assistance.
  • After a year, you decide to contribute P100,000 again. This time, you can choose “Equity Fund D” that “Investment Manager E” is offering.
  • Each person can have a maximum of 5 investment products, as long as the total amount does not exceed your annual limit of P100,000 (or P200,000 for OFWs).
How to Contribute


As a retirement savings program, the contributor is entitled to receive back the total amount contributed, plus all income associated with his or her PERA account, upon retirement. In addition, the contributor receives the following benefits through:

  • The maximum annual contribution, until the age of 55, is entitled to a 5% income tax credit;
  • All income earned from the PERA investment upon reaching retirement or death are tax exempt;
  • Unlike in SSS or GSIS, the contributor makes all the investment decisions, with the help of the Investment Managers, in choosing which investment assets to to put his or her money.

Withdrawing Conditions

Are there exemptions from early withdrawal penalties? Yes, the following situations will not be subject to Early Withdrawal Penalty:

  • Immediate transfer of proceeds to another Qualified/Eligible PERA investment Product and/or another Administrator within 2 working days from the withdrawal
  • For payment of accident or illness-related hospitalization in excess of thirty (30) days – needs a duly notarized doctor’s certificate

For payment to a Contributor who has been subsequently rendered permanently totally disabled as defined under the Employees Compensation Law or Social Security System Law – needs certification from pertinent government agency

Withdrawing Conditions