Filipinos preparing for retirement may now tap unit investment trust funds (UITFs) with overseas exposure under the Personal Equity and Retirement Account (PERA), the Bangko Sentral ng Pilipinas (BSP) announced.
In a memo issued last week but released to the media on Wednesday, BSP clarified that UITFs created locally but invested in foreign-issued securities—such as feeder funds and fund-of-funds—are now accredited as PERA products.
These funds pool investor money and channel it into global bonds, equities, or other assets, expanding the menu for retirement savers.
“UITFs with foreign exposures may qualify for accreditation as PERA investment products subject to the existing approval process,” BSP Deputy Governor Lyn Javier said.
She added that the move gives contributors more options to diversify, an essential buffer in volatile markets.
More accessible system
PERA was established in 2016 as a voluntary, tax-incentivized savings program to supplement retirement benefits from SSS, GSIS, or employer plans. But uptake has been slow, with only a fraction of the workforce enrolled. The BSP has since pushed reforms to make the system more accessible.
Going digital in 2020 was a turning point. Open finance now allows Filipinos to set up PERA accounts entirely online, skipping paperwork and ID submissions.
Apps such as GCash and Maya, along with banks like Land Bank, Metrobank, PNB, RCBC, and UnionBank, offer PERA products, while fund managers ATRAM Trust, BDO, and BPI Wealth administer investments.
Bigger benefits
To encourage participation, BSP doubled annual contribution caps last year—up to P200,000 for locally employed and self-employed workers, and P400,000 for overseas Filipinos.
Savers also enjoy generous perks: a 5 percent income tax credit on contributions, tax-exempt earnings, and estate tax waivers for beneficiaries.
At present, 17 UITF products qualify as PERA investments, mainly in government securities, corporate bonds, and equities. With the inclusion of funds with global exposure, the BSP hopes to attract more Filipinos to long-term savings and broaden the country’s capital market.
The challenge ahead
Despite the incentives, PERA remains underutilized. Many Filipinos are still unfamiliar with investment products, or prefer short-term instruments like time deposits. By expanding choices and making enrollment seamless, BSP aims to shift behavior from consumption to savings, and from domestic-only investments to globally diversified portfolios.
The central bank said it will continue adding eligible instruments to keep PERA competitive, making it not just a supplement but a genuine pillar of retirement security.
