The Home
Development Mutual Fund (HDMF) or PAG-IBIG Fund is much known to every
Filipinos as a government institution intended to provide affordable shelter
financing to all Filipinos. Aside from this, its members look at it as another
lending institution to borrow money from with lesser interest rate compared to those
offered by banks or loan sharks.
On the
undesirable side, some employees perceive the HDMF as another burden that takes
away another deduction from their hard-earned money on a monthly basis. Other
cuts being the income taxes, the Philhealth and the SSS contributions.
Unknown to
many, however, PAG-IBIG Fund is a very good retirement savings vehicle for the
fund’s members. As a member of the fund, your contributions were growing due to
dividends the fund is generating from the loans borrowed by its members and other income generating operations it ventures.
At present, the
fund have the following loan programs available for its members.
1. The
Multi-Purpose Loan (MPL) Program which aims to address the member’s immediate
financial needs.
2. The
Calamity Loan Program which is made available to members whose place of
residence has been placed under a state of calamity after a natural disaster.
3. The
Housing Loan Program which is a financial assistance for the purchase or
construction of a residential unit.
With these
loan programs and other income generating operations by the fund, PAG-IBIG Fund
members’ contributions could grow into a very good amount they can use during
their retirement age.
With an
assumption of 4% dividend performance annually (based on previous years
performances), members’ contributions could grow into the given figures on the
table above within the span of 20 years.
To check on the above-mentioned table, you can go on the PAG-IBIG Fund report on their website through the link below:
To verify or
play around yourself on the PAG-IBIG Fund dividend rate on the given table
above, I have prepared a PAG-IBIG Fund Savings Growth Calculator in Excel File
which you can use to assume your calculations.
You can
download your copy of the calculator on the link below:
Cheers
towards your financial freedom…. Juan!