You may have read about Pag-IBIG’s recent contribution increase over the past month, but did you know that your PHP 200 contribution (plus an additional PHP 200 from your employer) will go straight to your Pag-IBIG Regular Savings? It’s a program offered by the Home Development Mutual Fund (Pag-IBIG Fund), designed to help you secure a more stable retirement.
Retirement marks a significant transition in life, and a well-thought-out plan ensures that you can enjoy this phase without financial stress. With your Pag-IBIG monthly contributions, you gain:
- Financial independence: A carefully crafted retirement plan allows you to maintain your lifestyle and cover essential expenses without relying on others.
- Inflation protection: Over time, the cost of living rises, and a robust retirement plan can help you withstand the impact of inflation.
- Healthcare expenses: Healthcare costs increase as we age, but having a safety net through your retirement plan can easily accommodate unforeseen health challenges.
- Lifestyle choices: Retirement is an opportunity to pursue hobbies, travel, and enjoy leisure activities. With a well-funded retirement plan, you can enjoy life without compromising financial stability.
What makes Pag-IBIG Regular Savings worth it
Pag-IBIG Regular Savings is a voluntary savings program that provides Filipinos with a reliable avenue for saving money and earning dividends over time. With just PHP 200 deducted from your monthly salary, you can enjoy the following benefits:
- Competitive dividend rates
Pag-IBIG offers competitive dividend rates on Regular Savings, allowing your money to grow over the years. The compounding effect ensures that your savings work for you.
To make the most of this, remember that time is crucial in building wealth through compounding. This means that the earlier you start contributing to Pag-IBIG Regular Savings, the more time your money has to grow.
- Tax-free earnings
They say death and taxes are the only sure things in life, but your earnings from Pag-IBIG Regular Savings are exempt from income tax.
This means once your contributions mature after 15 and 20 years, you can take 100% of your savings through an optional withdrawal. The amount will have grown depending on the annual dividend rates.
You can also choose to withdraw it once you reach 60, but the final withdrawal will be when you reach 65. This provides a tax-efficient way to grow your retirement fund—the perfect piggy bank alternative!
- Flexible contribution options
The best thing about Pag-IBIG Regular Savings is that it allows you to contribute at your own pace. You can make it adaptable to your financial situation. Starting February 2024, the monthly required contribution will be PHP 200 per member, but you can opt for larger contributions for bigger savings.
The only thing you need to consider is consistency. Thankfully, making regular contributions to your Pag-IBIG Regular Savings account is easier than ever. You can pay online through the Virtual Pag-IBIG website or mobile application, with various payment channels like GCash, Paymaya[CDDL1] , and even credit or debit cards.
Tip: You can view your records hassle-free through the Virtual Pag-IBIG, apply for loans, and even claim your savings—it’s the perfect digital hub for all your needs.
- Loan privileges
Life can sometimes throw us into unexpected situations. Whether it be a chance to purchase your dream home finally or you need to get back up after a calamity, you can utilize Pag-IBIG Regular Savings for housing and calamity loans—all without depleting your retirement fund.
Pag-IBIG para sa’yo
Building a future-proof retirement plan is vital to enjoying a financially secure and fulfilling retirement.
Pag-IBIG Regular Savings offers a reliable and flexible avenue for Filipinos to grow their retirement fund, the perfect companion for significant strides towards a worry-free retirement. Remember: the financially secure future you want to build lies in your decisions today. With Pag-IBIG, you make it easier to achieve!
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