At last, PERA is here! After half a decade of waiting and being a #Paasa to many Filipinos, especially OFWs, the government has finally launched it to help promote long-term investments.
But what is PERA?
PERA is the acronym for PERSONAL EQUITY and RETIREMENT ACCOUNT. This is a voluntary retirement account, which an individual can set up for his/her exclusive use and benefit. It is similar to the 401(K) of the United States of America that serves as a financial instrument for retirement.
How Can A Filipino Be Qualified To Be A PERA Investor?
The main qualification for a Filipino to invest in PERA is to have a TIN or a Tax Identification Number. Now this is a problem I have encountered for several years. There are so many OFWs without TIN or may have forgotten theirs as they have been working for so many years already overseas.
There are two things that OFWs can do to have TIN:
1. Call the BIR Hotline (632)981-888 and ask for assistance to check if you already have a TIN. You may mention the names of the companies you worked with back in the Philippines to make it easier for them to help you.
2. Write an authorization letter that your representative back home can bring to the BIR. This letter should allow them to apply for a TIN for you. You should also send at least one of your Philippine government-issued ID to accompany your authorization letter.
Why Should OFWs Invest in PERA?
We always dream about how we should spend the rest of our golden years. As much as possible we want to enjoy our retirement years in simple yet comfortable lifestyle.
It is therefore very important, especially for OFWs, to plan everything to achieve whatever goals you have. Planning for retirement requires long term vision, discipline, and commitment. One also has to learn how establish funds, invest it in placements that grow to achieve the needed amount for retirement years, and preserve them in order to not derail those original plans.
Now that PERA is here, OFWs are finally blessed with another low-risk investment option to prepare for their retirement.
Here are just few reasons why PERA may be the most suitable investment vehicle for many OFWs:
1. Higher returns. Investing in PERA will grow faster and higher than just leaving your money in your bank savings deposit account. This is because your money will be invested either in stocks, mutual funds, bonds, UITF’s, and many other financial instruments.
2. Maximum limit on investment. Since many OFWs earn more than their fellow Filipinos back home, they are provided the benefit of being able to invest up to Php200,000 annually. Filipinos working in the Philippines can invest up to Php100,000 only.
3. Tax benefit for OFWs. OFWs are entitled to claim tax credit from any tax payable to the national government. For example, if you have real properties or similar assets, you can claim tax credits under your name in the Philippines. If you also withdraw your investment only after you are 55 years old, you are exempted from being taxed.
4. You may assign a representative to open a PERA account for you. For married OFs who cannot directly open a PERA, his/her legitimate spouse or legitimate spouse and children based in the Philippines may represent him/her in opening a PERA.
Excited to save now and lessen your unnecessary spending? Congratulations! Now’s your chance to start preparing for your retirement by investing in PERA this year!
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HI PO SIR, GUSTO KO PO MALAMAN PA PO DETAILS NG PERA, SAKA SA PAG OPEN DIN PO NG ACCOUNT. MARAMING SALAMAT PO