How to Grow your Money with Pag-ibig and SSS Savings Program

Do you know that aside from paying your monthly contributions to Pag-ibig and SSS, you can also invest your money with them?

Yes, that’s right and what’s good about this is that your money earns more compared to when you save it in the bank.

This is exactly the reason why our government is encouraging us to invest in Pag-ibig and SSS.

Pag-ibig Fund Savings Program

With Pag-ibig Fund, your total accumulated savings and the dividend earnings will be given to you after 20 years or 240 months.

Your total savings and dividend earnings will depend on the amount of your monthly contributions/savings to Pag-ibig. The table below is from the Pag-ibig Fund website that shows you how much you’re going to earn after 20 years with 4% annual dividends.


Note: *This 4% dividend rate is indicative only based on previous years’ dividends. Actual dividends will be based on the yearly income of the Fund.

How to Increase your Monthly Savings with Pag-ibig Fund

  • For employed members – Just inform your HR officer that you want to pay more than the minimum savings of Php 100 per month.
  • For individual payors (voluntary, self-employed, OFW, etc) – Just pay the higher monthly savings to Pag-ibig. Instead of paying P200, just add more if you want to save more.

What is Modified Pag-ibig 2 Savings (MP2)

This is another savings program of Pag-ibig Fund that allows you to deposit a minimum of Php 500 and there’s no maximum amount.

The maturity of this is 5 years but you can renew it if you want to continue saving which is good because your dividend earnings will be a bit higher.

In 2016, dividend rate of the regular Pag-ibig savings reached 6.9% while MP2 reached 7.4%. This is way better than putting your money in a bank savings account with an interest rate of 0.25% per year.

SSS Investment Programs

The Philippine Social Security System or SSS also has investment programs including:

  • SSS PESO Fund – This Personal Equity and Savings Option (PESO) Fund is a voluntary provident fund offered exclusively to SSS members in addition to the regular SSS program.

Meaning, you can add a minimum contribution of Php 1,000 and maximum of Php 100,000 to your SSS account if you have the capacity to contribute and save more. Click here for more info.

  • SSS Flexi Fund – These are the savings that are built from payments of at least P200 remitted on top of the SSS contributions of an OFW member, who is paying the maximum amount of P1,760 per month.

In 2014, member’s Flexi-fund savings earned at an average guaranteed interest rate of 1.3%

According to Ms. Judy Frances See, SSS Senior Vice President for International Operations Division, “SSS Flexi-Fund is safe and secure investment, which means they will get their savings as well as the interest earned in full to supplement their retirement fund or whatever benefits they will get from the regular SSS program in the future.”

Why Invest in Pag-ibig Fund and SSS Savings Program?

Since this is backed by the government, you are guaranteed that your savings are safe and secure and you will get it upon its maturity plus it’s TAX-FREE!

So, if you have extra funds and you still don’t know where to save or invest it, try these two government savings program now.

Watch this video from GMA 24 Oras.

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