Pag-IBIG savings program hits record P25.9 billion

MANILA, Philippines — The voluntary savings program for members of state-run Home Development Mutual Fund or Pag-IBIG almost doubled from P13.23 billion in 2020 to an all-time high of P25.95 billion last year.

As a voluntary facility, the Modified Pag-IBIG 2 (MP2) savings program provides Pag-IBIG members with increased dividends they can withdraw upon reaching maturity in five years.

The yield from the MP2 rose to a high of 8.11 percent in 2017 from just 4.63 percent in 2011 when the savings program was opened. However, it fell to 6.12 percent last year on the impact of the pandemic on the financial market.

Housing Secretary Eduardo del Rosario said Pag-IBIG members invest their excess income on MP2 because the voluntary savings reward them with yields exceeding standard rates.

“Because the MP2 has traditionally provided higher return on savings, more and more members are preferring to grow their hard-earned savings in Pag-IBIG Fund,” Del Rosario said.

“As we finalize all of the reports for the year, we will be announcing the dividend rates for 2021 very soon,” he said.

Pag-IBIG CEO Acmad Rizaldy Moti, for his part, said the number of MP2 savers grew by about 42 percent to 721,980 last year, from 508,522 in 2020.

“We thank our members for their enduring support for the MP2 even in these challenging times. Because you choose to save in MP2, it has always been one of our most impressive programs,” he said.

Pag-IBIG members can start an MP2 account for a minimum deposit of P500, and withdraw their returns when the savings mature in five years.

Apart from regular members, the program welcomes workers who were formerly contributing to the housing fund, as well as pensioners and retirees for as long as they have at least two years in savings prior to retirement.