Wednesday, November 24, 2010

Pag-IBIG Fund as Retirement Savings

I worked in Pag-IBIG Fund for 3 years right after graduation. During that time the Fund was voluntary because of the backlashed that the Fund was a creation of Marcos. I have an open mind being a neophyte that a job in the government is better than not earning a single cent.

Im an activist during my college days but being with Pag-IBIG Fund for 3 years convinced me that the Fund was one of the good legacy of Mr. Marcos.

The idea is simple, Pag-IBIG will be provident savings program that is fast, easy and affordable way to save for future needs.

Since we as a people are slackers when it comes to savings, the government forced us to save thru salary deduction. The process is proven correct because the contributions I made as a member makes together with my employer counterpart are credited to my Total Accumulated Value (TAV).

This means double savings immediately with the addition of the employer counterpart contribution.

Aside from being fully guaranteed by the national government, members’ contributions are deducted from the gross income prior to computation of the income tax.

Members’ savings earn annual dividends that are also tax-free. The dividend rate varies depending on the net income of the Fund at yearend.

I bought my house thru Pag-IBIG Fund Housing program and I now have around P100,000 total accumulated savings since I started to be a member in 1989.

The vision of Pag-IBIG Fund is to promote and integrate a nationwide sound and viable tax exempt mutual provident savings system suitable to the needs of the employed and other earning groups, and to motivate them to better plan and provide for their housing needs by membership in the Home Development Mutual Fund, with mandatory contributory support of the employers in the spirit of social justice and the pursuit of national development.

My Pag-IBIG savings will be my supplementary retirement pay and because of this I am convinced that Pag-IBIG Fund is doing a good job and deserve a praise.

My friends at Pag-IBIG Fund, specially in Lucena Regional Office, I salute you!

next topic: Investing in Mutual Fund


  1. Anonymous4:19 AM

    Anna C. Vergara BSBA-4FM

  2. Anonymous7:38 PM

    Jennelyn E. Castilleja BSBA-2B

  3. Anonymous10:53 PM

    Shiena R. Latoreña