Revitalizing PERA: DragonFi breathes new life into retirement savings

MANILA, Philippines —  DragonFi Securities Inc., the stock brokerage arm of Edgar “Injap” Sia’s DoubleDragon Corp., is poised to revitalize the government’s Personal Equity and Retirement Account program, with the aim of almost tripling the current number of PERA accounts by next year.

Jon Carlo Lim, co-founder and CEO of DragonFi Securities, told The STAR the company targets to offer PERA by the start of the third quarter.

“We envision that during the first year of our PERA product, we will be able to garner around 10,000 to 12,000 PERA accounts, thereby almost tripling the current number of PERA accounts in the country,” Lim said.

DragonFi Securities is the first PERA administrator accredited by the Securities and Exchange Commission.

Lim said that DragonFi sought accreditation as a PERA administrator to align with its mission of promoting an investing culture and broadening the Philippine capital markets.

For Lim, the PERA program has the potential to address two critical challenges – the lack of financial preparedness for retirement among Filipinos and the underdevelopment of the Philippine Stock Exchange (PSE).

“Prior to our accreditation, only banks and trust companies were eligible to serve as PERA administrators. This limited approach resulted in minimal adoption of the program – only around 6,000 PERA accounts have been created since its launch in 2016,” Lim said.

By becoming the first broker-dealer PERA administrator, DragonFi aims to bring fresh energy and innovation to the initiative by offering PSE and dividend investors a tax-efficient way to grow their retirement savings.

“We see PERA as a transformative tool not only for individuals seeking a secure financial future but also as a means to deepen market liquidity and revitalize the PSE,” Lim said.

PERA was introduced by the Bangko Sentral ng Pilipinas in 2016 with support from the financial industry.

Established under Republic Act 9505, PERA is a voluntary retirement saving program available to the public in addition to existing retirement benefits from the Social Security System, Government Service Insurance System and employer-sponsored plans.

It offers contributors tax benefits not available in other retirement investment products to encourage Filipinos to save for their future.

Lim said Filipinos should invest in the PERA program because it offers a unique opportunity to build long-term financial security tax-efficiently.

“Essentially, PERA is another wealth-building tool that we offer to Filipino investors. The tax-advantaged nature of PERA will potentially allow Filipino investors to compound their investment at a higher rate,” Lim said.

Through DragonFi, Lim said that investing in PERA would be user-friendly and is as simple as opening a regular DragonFi account.

To do so, one must visit DragonFi’s website or download the DragonFi app to create a free account, then select PERA as the account type.

A registration process must then be completed by providing personal information and verifying identity.

To fund a PERA account, Philippine residents are eligible for a maximum annual contribution of P200,000. At the same time, overseas Filipinos can take advantage of a higher annual contribution limit of P400,000.

Account holders can also choose their PERA investments by browsing DragonFi’s PERA-eligible investment options, including stocks, REITs and UITFs.

Lim said any Filipino aged 18 or older with a tax identification number can open a PERA account.