In 2008, the Personal Equity and Retirement Account (PERA) Law was signed in the Philippines. Eight years later, there was still no progress on the actual implementation until September of 2016 when BDO was accredited as the first PERA Administrator.
Retirement accounts are usually set up by a government in order to encourage its citizens to save money in the long term. One major benefit for the government to do this is that it tones down government-sponsored pension expenses and so effectively reduces the amount of money needed to support their retired population. One drawback for this is that citizens are now being asked to manage their own retirements instead of relying on the government or the businesses that they are employed in to handle those investments. It is therefore important for everyone to educate themselves on the advantages and benefits in properly managing their retirement accounts.