How to Open a PERA Account and Secure Your Future
PERA investment in BDO is one of the smartest ways to prepare for your retirement while taking advantage of tax perks you won’t find in most traditional savings accounts. If you’re seeking a low-maintenance, government-supported, and tax-efficient investment vehicle to grow your wealth over time, this could be the ideal option for you.
In this blog post, we’ll walk you through what PERA is all about, why choosing BDO is a solid move, and most importantly, how to open a PERA account in BDO. Whether you’re in your 20s, 30s, or already thinking of retirement, this guide is for you.
What is PERA?
PERA stands for Personal Equity and Retirement Account. It’s a voluntary retirement savings program in the Philippines introduced under the Republic Act 9505. Think of it as the Filipino version of the 401(k) in the U.S. or the RRSP in Canada.
Here’s what makes PERA special:
Tax-free investment income
Tax credit of 5% on your annual PERA contribution
Tax exemption on withdrawals (if done after age 55 and under the required conditions)
You can invest in various instruments like mutual funds, government securities, or unit investment trust funds (UITFs)
Why Choose BDO for PERA Investment?
BDO Unibank is one of the accredited PERA administrators in the Philippines. If you’re already banking with them, opening a PERA account is a seamless process. But even if you’re not yet a client, it’s still worth considering for these reasons:
✅ Trusted and Regulated
BDO is one of the most stable and trusted financial institutions in the Philippines. As a BSP-accredited PERA Administrator, they ensure your investments are properly handled.
✅ Easy Online Access
Once your account is open, you can manage your PERA contributions and monitor your investment performance via BDO’s secure online banking platform.
✅ Multiple Investment Options
BDO offers PERA investment options through its BDO UITFs, giving you a chance to choose the one that fits your risk appetite and long-term goals.
PERA Contribution Limits and Tax Benefits
Before we go into the steps on how to open a PERA account in BDO, let’s look at the numbers and perks.
💸 Contribution Limits:
Up to ₱200,000/year for Filipinos in the Philippines
Up to ₱400,000/year for Overseas Filipino Workers (OFWs)
🧾 Tax Perks:
5% tax credit based on your total contribution. This can be used against your income tax.
Investment income is tax-free.
Estate tax exemption on your PERA funds
So if you contribute ₱100,000 in a year, you can get a ₱5,000 tax credit—essentially getting rewarded by the government for investing in your future!
How to Open a PERA Account in BDO: Step-by-Step Guide
Here’s a simple and quick guide on how to open a PERA account in BDO, whether you’re doing it online or via a branch.
Step 1: Prepare Your Requirements
Valid government-issued ID (e.g., passport, driver’s license)
Tax Identification Number (TIN)
BDO account (for easier fund transfer)
Active email address and phone number
If you’re an OFW or currently overseas, you may also need to provide a Certificate of Employment or proof of overseas work.
Step 2: Visit BDO’s PERA Portal
Go to BDO’s PERA page and read the product disclosures. You can either:
Apply online, or
Visit the nearest BDO branch that offers PERA services
Pro Tip: Most people prefer to apply through the BDO Trust & Investments Group by appointment to receive personalized advice.
Step 3: Fill Out the Online Application or PERA Forms
If doing it online, register through the BDO Invest Online portal. Select your preferred investment product and complete your risk profile (to determine which fund best suits your investment style).
Step 4: Fund Your PERA Account
You can transfer money from your BDO account or make an over-the-counter deposit. The minimum initial investment amount is usually ₱1,000, depending on the fund you choose.
Step 5: Start Investing Regularly
You can contribute monthly, quarterly, or yearly—up to your annual limit. It’s flexible and works well with almost any budget.
If you’re saving for long-term retirement goals, PERA is the clear winner. You’ll earn more and keep more of your money.
Tips to Maximize Your PERA Investment in BDO
Start early. Time is your best friend when it comes to compounding interest.
Invest consistently. Even if it’s just ₱1,000 a month, it adds up.
Pick the right fund. Choose based on your goals and risk appetite.
Monitor your growth. Check your BDO PERA dashboard regularly.
Final Thoughts: Is PERA Investment in BDO Worth It?
Absolutely. PERA investment in BDO is one of the best-kept secrets when it comes to retirement planning in the Philippines. The combination of tax savings, low entry cost, and flexible investment options makes it a top choice for both beginners and experienced investors.
And now that you know how to open a PERA account in BDO, it’s easier than ever to get started. Don’t wait until your 50s to think about retirement—build your wealth while you still have time on your side.
Ready to open your PERA account today?
Visit your nearest BDO branch or sign up through the BDO Invest Online portal and take control of your future.
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Disclaimer:
This article is for general informational and educational purposes only and does not constitute professional financial advice. While we aim to provide accurate and updated information about PERA investment in BDO and related topics, we do not guarantee the completeness, reliability, or suitability of this content for your personal financial situation.
Investing always carries risks, and individual circumstances may vary. We strongly encourage you to consult with a licensed financial planner, investment advisor, or banking professional before making any investment decisions or opening a PERA account.
Wealthy Thrifter and its contributors are not liable for any losses, actions, or decisions made based on the content of this article. Always do your own research and seek expert guidance.
