Maybe you are wondering why you are making your monthly contributions to Pag-IBIG Fund. What is it for? There are many benefits to making Pag-IBIG contributions. You have access to various Pag-IBIG Fund loan programs. One of the best here is the housing loan. Yes, you can reach your dream of having your own house with just a little interest.
But what if you don’t want to take out a loan? Where will your contributions go? Your contributions won’t go away. After all, your contributions are your savings in life. Once the maturity period of your regular savings has been reached, you can withdraw it anytime.
You don’t have to wait until retirement to access the funds you’ve set aside through the Pag-IBIG Fund. Make sure to read all the way to the end of this brief tutorial if you want to discover when you may use your regular Pag-IBIG funds.
This guide is exclusively for regular savings and not MP2 savings. However, if your wish to know more about the Pag-IBIG MP2 Savings, you can read the full article here.
What You Need To Know
Employees in the Philippines often pay off their member contributions at work on a monthly or voluntary basis, in addition to creating a savings account with their preferred bank. This member contribution, on the other hand, isn’t just a recurring cost that you pay and then forget about for a few years – assuming you haven’t completely forgotten about it.
You, like many Filipinos, put your money in a bank account with the expectation of earning interest.
Interested in earning higher interest? You might want to read about Pag-IBIG MP2 Savings Program here.
You can borrow money from Pag-IBIG as an active member to cover other requirements, such as buying a new house or upgrading an old one.
You do not have to wait till you reach retirement age to withdraw your Pag-IBIG Fund contributions. However, if you leave your assets in the fund for longer and continue to invest in it after you stop working, you might expect to get bigger rewards than if you withdraw sooner.
There are several instances in which you may be able to withdraw your Pag-IBIG funds. These are the following:
- If the member has a critical illness certified by licensed physician
- Separation from service due to medical grounds set by Pag-IBIG
- After 20 years maturity period or 240 monthly payments
- Permanent emigration from the country
- Retirement at the age of 60 (voluntary) or 65 (mandatory)
- Total and permanent disability or insanity
- Upon death, his lawful heirs will get his TAV (Total Accumulated Value) as well as an extra death benefit.
So, are you qualified to withdraw your Pag-IBIG Fund savings? If you answered yes, now is an excellent time to keep some cash on hand, especially given the current economic situation.
If you have any queries or issues concerning Pag-IBIG, please contact their customer service center at 8724-4244 or go to the Pag-IBIG branch/office nearest to you.
Related Reading: How to Check Your Pag-IBIG Contributions Online in 2022