Pag-IBIG Fund, the government agency that provides affordable housing loans to Filipino workers, has announced its highest dividend rates since the COVID-19 pandemic began. The Regular Savings dividend rate for 2022 reached 6.53%, while the Modified Pag-IBIG 2 (MP2) Savings surged to 7.03% per annum.
The announcement was made by Pag-IBIG Fund Chairman, Secretary Jose Rizalino Acuzar, during the agency’s annual gathering of members, partners, and stakeholders at the SMX Convention Center on March 28.
The event was attended by President Ferdinand R. Marcos Jr., who lauded the agency’s high dividend rates and its success in fulfilling its mandate of serving the Filipino workforce.
In his speech, Marcos expressed his pride in the agency’s stewardship of the national savings program, which has provided affordable shelter financing for the people.
He also urged the agency to sustain transparency and accountability in all its work and to continue the legacy of quality public service established by his father during the establishment of the Pag-IBIG Fund.
Pag-IBIG Fund’s net income for 2022 reached a record high of P44.50 billion, a 28% increase from the previous year.
The agency also reported record figures for home loans, total membership savings, loan payments, and new homes secured through its housing loan programs. The agency ended the year with total assets at their highest, amounting to P827.40 billion.
According to Secretary Acuzar, the high dividend rates are a result of the agency’s record-high net income and the highest dividend payout ratio approved by the Pag-IBIG Board.
While the agency is required to give back at least 70% of its annual net income as dividends, the Pag-IBIG Board approved a 97% payout ratio, resulting in a dividend amount of P42.70 billion – the highest in the agency’s history.
The DHSUD chief assured members that Pag-IBIG Fund will continue to keep the returns on their savings high while ensuring the Fund’s sustainability and stability.
He added that when Pag-IBIG Fund performs well, it is the members who benefit the most, and the agency shall be their reliable partner as they pursue a better and more secure future.
‘OFWs should start investing now’
Dubai-based Financial Coach, Jay Tolentino, suggests that PAG-IBIG MP2 is a perfect savings method for Overseas Filipino Workers (OFWs) who have a low-risk appetite.
“Investing in the Pag-IBIG MP2 program is a fantastic strategy to save money and achieve your future financial objectives. It’s also a terrific way to generate passive income by allowing a tiny amount of money to work for you,” said Tolentino.
The Modified Pag-IBIG II (Pag-IBIG MP2) Savings Program is a voluntary savings facility with a 5-year maturity, aimed at active Pag-IBIG Fund members who wish to increase their savings and earn higher dividends, in addition to their Pag-IBIG Regular Savings.
The program is available to members who have made at least one monthly savings contribution within the last six months. Former Pag-IBIG Fund members, such as pensioners and retirees, who have other sources of monthly income and have made at least 24 monthly savings prior to retirement, are also eligible to join.
To start saving, a member can contribute a minimum of Five Hundred Pesos (P500.00), which will be recorded as the payment date.
The Modified Pag-IBIG II (Pag-IBIG MP2) Savings Program provides two ways for members to earn: through annual dividend payout or compounding of dividends after five years.
In his podcast titled “Pera & Purpose,” Tolentino delved into the intricacies of how PAG-IBIG MP2 operates. You can listen to it by clicking the link below:
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