PERA is a voluntary retirement account under Philippine law. Here is what it means, how it works, and why we chose to document our own account.
Originally published: September 26, 2026 · Last updated: September 26, 2026
Links to related posts
- The PERA Micro Harvesting Journey So Far
- How Our PERA Journey Began: Pay Ourselves First
- A Long-Term Goal with an Active Method
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- Capital Markets
What PERA means
Kapag sinabi naming “PERA,” maaaring isipin na dagdag ito sa suweldo o pangalan lang ng aming investment strategy. Ang ibig sabihin nito ay Personal Equity and Retirement Account. It is a voluntary retirement savings program established under Republic Act No. 9505. It supplements benefits from SSS, GSIS, or an employer-sponsored retirement plan; it does not replace them. The Bangko Sentral ng Pilipinas (BSP) introduces PERA as a way for Filipinos to prepare more deliberately for retirement. Read the BSP introduction.The account is a container for eligible retirement investments. A contribution is money we put into that container. What happens next depends on the products selected, their risks, costs, and investment results. A deposit is not a profit, and a PERA account does not guarantee a return.
How it works
A contributor opens a PERA account through an authorized administrator, assesses the available eligible products, and chooses investments suited to their goals and risk tolerance. The BSP lists several categories, including approved funds, government securities, and locally listed shares or other securities, subject to PERA eligibility. Its FAQ also explains the account-opening process and the roles of the administrator and, where applicable, a custodian or investment manager. See the BSP PERA FAQs.Our own account uses eligible local equities available through our PERA provider. That is our portfolio choice, not a requirement for everyone with PERA. Other contributors may choose a different mix among the products available to them.
Benefits and limits
PERA has tax incentives, subject to the applicable rules. The BSP describes a tax credit on qualified contributions, tax treatment of eligible investment income, and tax-free qualified retirement distributions. It also explains the general 55-and-5 rule: qualified retirement distribution upon reaching age 55 after at least five years of qualified contributions. Early withdrawals have separate conditions and possible penalties. Check the current rules and your administrator’s records before making a tax or withdrawal decision. See the BSP benefits and withdrawal FAQs.Tax treatment does not remove investment risk. A stock or fund inside PERA can lose value; fees and poor decisions can reduce the account. That is why we keep contributions, purchases, sales, dividends, costs, and results as separate parts of our record.
Our journey
We began contributing in December 2025 because we wanted to build a retirement account with a habit we could sustain. We call our way of managing it PERA Micro Harvesting: a long-term retirement purpose with selective investment decisions inside the account. That name describes our method. PERA itself is the retirement framework established by law.If you are beginning with us, continue with The PERA Micro Harvesting Journey So Far and how our first contribution began. We will add the live links when those articles are published.
This post explains PERA in general and documents our own account choice. It is not personalized tax or investment advice, a trade alert, or a promise of results.
Para sa opisyal na panimula ng Bangko Sentral ng Pilipinas tungkol sa PERA:Banko Sentral ng Pilipinas: Inclusive Finance - PERA - Introduction
Shariah Compliance Advisory (Updated September 9, 2026)
The Philippine Stock Exchange (PSE) has officially confirmed that it has ceased publishing its list of Shariah-compliant securities.
In November 2025, the PSE informed Micro Stock Trader that its Shariah initiative had been temporarily paused for an internal evaluation. In a subsequent email dated September 9, 2026, the PSE clarified:
“Please be informed that PSE has officially ceased publication of Shariah-compliant securities.”
Accordingly, Micro Stock Trader will continue applying a conservative, independently screened approach to its halal-focused investment strategies, in shā’ Allāh. This screening forms part of our personal portfolio governance and does not constitute an official Shariah certification or religious ruling.
Ang aming mga post ay bahagi ng personal learning journey ng Micro Stock Trader sa securities analysis, portfolio management, at capital markets. The information, strategies, frameworks, and examples presented are for educational and documentation purposes only. They reflect our personal methodologies and experiences, do not constitute investment advice, and do not guarantee future performance.
Any discussion of interest-based instruments, conventional bonds, preferred shares, or other financial arrangements is provided solely for academic and analytical context—not as a recommendation or endorsement. Readers should perform their own due diligence and consult qualified financial professionals before making investment decisions.
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