Finance Secretary Carlos G. Dominguez III urged the millennials, particularly young overseas Filipinos workers (OFWs), to start investing and saving to ensure they enjoy their retirement in style.
Dominguez, 74, said the younger generations should save a portion their hard-earned money and invest in voluntary retirement account, noting there are digitally available, safe, affordable investment and retirement products for Filipinos.
In keeping with the government’s goal of broadening financial inclusion among Filipinos, Dominguez said they have launched various investment and retirement savings products under the Personal Equity and Retirement Account (PERA).
PERA, a digital investing platform, allows Filipinos to access affordable retirement savings options at any time and anywhere in the world.
Dominguez said this Digital PERA platform benefits the OFWs, as it opens opportunity to make the most of their hard-earned pay by saving a portion of it through the various PERA products available.
“Initiatives such as the Digital PERA is the least this government can do for the heroic Filipinos working overseas and helping support our economy,” said Dominguez in his videotaped message during the launching of the Digital PERA platform.
“This is a major step towards the broadening of financial inclusion by enabling a convenient, safe, and seamless medium for both investment and retirement savings for the Filipino people,” he added.
Dominguez said Digital PERA will enable many Filipinos to get acquainted with financial products and eventually develop financial literacy, while producing a new source of capital to power the nation’s growth.
“It will help deepen the country’s local debt market, as it would convert savings into investable funds that can be tapped by Philippine companies,” he said.
Created under Republic Act (RA) No. 9505, the PERA is a voluntary retirement account that aims to promote capital market development and financial security for Filipinos here and abroad.
The PERA Law was enacted in 2008, but its implementation was delayed because of taxation and regulatory issues.
Dominguez said that with the successful launching of digital PERA, the government should encourage life insurance and pre-need companies to also take on an active role in promoting savings mobilization through PERA.
“We will certainly need a massive public information campaign about the benefits of building a personal retirement fund—so the Filipino people can take full control of their future through personal financial management,” he said.
Dominguez encouraged young Filipinos “priming to enjoy their retirement in style” to likewise invest in PERA through the means that they are most familiar with—a digital platform available on their smartphones 24/7.
On top of widening access to PERA products, the leap to digital transactions will also reduce processing time and lower transaction costs for millions of potential PERA investors.
“The Department of Finance (DOF) has always advocated for the adoption of new financial technologies or Fintech to reduce transaction costs and to improve revenue monitoring across the board,” Dominguez said.
“Through the current pandemic that we are experiencing, the importance of this transition to digital transactions has been magnified. The digital PERA is a historic step not only into the New Normal, but also into the New Economy,” he noted.