“An investment in knowledge pays the best interest." — Benjamin Franklin
I first wrote about Pag-IBIG’s MP2 savings program last July 2024. I got a number of positive comments about it from my readers. Some said it was their first time to learn about the program and how they wish they had known about it much earlier. But I wonder how the others responded. If you were one of those who read it last year, have you taken action and set up your own MP2 account? Or did you just consider it a nice article but did nothing about it?
About 3 weeks ago, Pag-IBIG announced a 7.10% return rate for its MP2 savings in 2024. Question: Were you able to participate in that gains or did you again miss the opportunity to grow your money?
I am passionate in sharing the MP2 program because I experienced both missing it and enjoying it. I missed it the first time it was introduced to me since I did not exert effort to fully know and understand it. The opportunity to grow our money starts with knowing how. In investment, nothing will pay us off more than educating ourselves. That’s why the 2nd time it was discussed with me, I studied and learned about the whole program. Then I took action!
Pleased to share with you, my dear readers, that going into my 2nd year with MP2, my savings already grew by 12%. As I am not taking out the annual dividends, my savings is benefitting from and enjoying the wonders of compounding interest. Compared with the return rates of most of the savings and investment instruments available in the market today, you will agree with me that MP2’s is such a welcome treat for a retiree-investor like me.
Now, as I cannot “force” you into the program, I will just provide you again with the know-how, hoping that if the first bite didn’t get you, the second one will! And just like me, this time around, you will really learn it and take the next step!
The MP2 Savings is a special savings facility (in addition to the Regular Pag-IBIG regular savings) with a 5-year maturity, designed for both Pag-IBIG Fund current and former members. Yes, retirees like me can participate.
What I like most about the program?
It’s a government-guaranteed savings program. As the Philippine government guarantees it, you won’t lose your principal. Can you imagine a savings/investment program where your principal is 100% protected and still participate in the upside? Pag-IBIG Fund sets aside at least 70% of its annual net income and credits it proportionately to its members’ Pag-IBIG Savings as dividends. Since it started, it has never missed a “dividend year”. But, even if there will be no dividends in a given year, the best value you can get is the original amount of your accumulated investment. Only upside, no downside!
It’s a flexible and affordable investment. You can either invest monthly or choose to remit a one-time lump sum amount for the whole 5-year period. As a retiree, I did a lump-sum investment. But my son, who is employed, is doing it via salary deduction. Even minimum wage earners can participate as minimum starts at P500/month. My son told me that according to their HR, more of their employees are now asking about MP2. People just need triggers!
It offers high dividend rate. The MP2 returns are higher than that of the regular Pag-IBIG savings program. For 2024, its regular savings has 6.6% dividend rate while MP2’s was 7.10%. However, as it depends on the profit made by Pag-IBIG for the year, MP2 may not pay out dividends. Fortunately, since it started, the program has consistently paid out dividends with the lowest return at 4.58% in 2013 and the highest in 2017 at 8.11%. During the pandemic, when almost all investment rates were down, it’s return was still in the 6% range. The best part of it all, you’ll receive your MP2 dividends TAX FREE and NO FEES, ensuring full retention of dividends. You may opt to either receive the dividends annually or reinvest to enjoy the beauty of compounding interest and receive them after the 5-year period. Dividends high and full!
It can be created in multiple accounts. You can open as many MP2 accounts as you like and can afford. As each account has a 5-year maturity period, this is good fund source for any of your mid to long term goals such as house renovation, car purchase or travel. I recently opened another MP2 account to fund a legacy project. Those who are doing monthly can create one account for the lump sum maturity amount and another account to continue their monthly contributions. The more, the better!
Those who have MP2 accounts can certainly vouch for the above. The popular TV Patrol anchor Alvin Elchico posted a video last Jan 27 where he shared his excitement while claiming his MP2 maturity benefit after 5 years. In his video, he shared that under MP2, his money, which he’s earmarked for a personal project, grew almost 20% in 5 years and he’s getting the full amount TAX-FREE. And because he’s too happy with MP2’s performance, he has created another MP2 account which he is excited to claim again after 5 years.
Just like Alvin, myself and many other MP2 investors, you too can participate and enjoy the benefits of Pag-IBIG’s MP2 program. I hope that more employers (both government and private) can actively promote and encourage their workforce into MP2. It’s one of the best options in the market to protect and grow our employees’ hard-earned money.
Don’t overthink anymore. Visit the nearest Pag-IBIG office or their website to create your MP2 account. Because… Pag-IBIG MP2 delivers.
