BAGUIO CITY (PIA) — A member of Home Development Mutual Fund (HDMF), more popularly known as Pag-IBIG, can retire as a millionaire by increasing his or her investment through the Fund’s Savings Program.
Pag-IBIG Ilocos Region Area head Merriam Pamittan shared this in the Kapihan sa Bagong Pilipinas forum where HDMF accomplishments and new programs under the Marcos Jr. administration were presented.
Pamittan explained that new graduates when they get employed and become become PAGIBIG members are deducted a mandatory P200 monthly contribution while the employer also provides a P200 counterpart for a total of P400 savings per month under the Regular Savings Program.
Given the 20 years maturity period for Pag-IBIG regular savings program, a member with P400 savings a month will have a P96,000 savings plus around P76,000 dividend applying the Fund’s six percent dividend rate, she said.
Pamittan shared that what is good is that Pag-IBIG provides its members the option to top up or increase their monthly savings.
“Now if they top it up to P1,000, inclusive of employer share, the member can claim P430,885.24. But if they can top up savings to P2,400 per month, they will retire as a millionaire (from their Pag-IBIG saving alone) because they will be claiming more than P1 million when their Pag-IBIG savings mature,” Pamittan explained.
As of September 2024, Pag-IBIG Fund is serving 16.37 million active members that collectively saved around P96.72 billion for the first three quarters of the year.
For Pag-IBIG members who are into strictly managing their financial resources, there is also the Modified Pag-IBIG or MP2 Savings Program, which has become a favorite investment program for members because of its higher returns and shorter maturity period compared to the regular savings.
In 2023, MP2 savers received a return rate of 7.05 percent for their savings. (CCD-PIA CAR)
