Where can parents save for their children’s college education? Many pre-need firms in the Philippines have collapsed.
Where can we save and invest? So we will have money for our kids’ college tuition?
There are investments like stocks, mutual funds and bonds, but we must learn about how they work first. If you want to learn about mutual funds, the website of BPI, bpiexpressonline.com, is one site that you can explore.
There are also still reliable insurance and pre-need companies in the Philippines, but you need to research about their backgrounds, their performance, and how they went through past economic crisis worldwide and in the Philippines.
There are also 5-year time deposits or auto-renew time deposits offered by banks, but don’t expect big interests. Avoid investing in rural banks’ time deposits that offer interest rates much much higher than those offered by big commercial banks. The website of PDIC, pdic.gov.ph, gives advice on time deposits.
Here are 2 investment options: Pag-ibig MP2 and SSS Flexi-Fund.
One of the big advantages of Pag-ibig MP2 and SSS Flexi-Fund over pre-need or insurance plans is the reality that you will never lose your savings in Pag-ibig MP2 and in SSS Flexi-Fund in case you lose your job or business and you are not able to continue adding to your MP2 and Flexi-Fund savings.
With pre-need or insurance plans, you will lose a BIG portion or ALL of what you have paid to these plans if you are not able to continue making your monthly payments.
Pag-ibig MP2 is offered to all Pag-ibig members while SSS Flexi-Fund is only for OFWs who are paying the SSS maximum monthly contribution, which is 1,760 pesos.
This chart below shows estimates of how much money you will get after paying 1,500 pesos monthly for 5 years.
|YEAR||PRE-NEED||PAG-IBIG MP2||SSS FLEXI-FUND|
|12th Year||Get 20,000|
|11th Year||Get 20,000|
|10th Year||Get 20,000|
|9th Year||Get 20,000|
|8th Year||Get 20,000|
|7th Year||Get 5,000|
|6th Year||Get 5,000||Get 104,500||Get 104,900|
|1st year to 5th Year||Pay 1,500 for 5 years. Total Payment is 90,000.||Pay 1,500 for 5 years. Total Payment is 90,000.||Pay 1,500 for 5 years. Total Payment is 90,000.|
|Has Credit Insurance, No Government Guarantee||No Credit Insurance, Has Government Guarantee||No Credit Insurance, Has Government Guarantee|
. Credit Insurance means the pre-need firm will pay the 1,500 monthly premiums if the payor dies within the paying period
. Some pre-need plans do not give 5,000 on the 6th and 7th year. Instead they give 20,000 on the 13th year.
. The pre-need plan above may not represent all pre-need plans.
1.Can I pay in advance for SSS Flexi fund? i mean for the year 2018 and remaining month in 2017?
–> No. You can only invest in Flexi-fund if you over-pay your maximum dues for a particular month. Anything in excess of P1,760 will be spilled over to the Flexi-fund. That’s the only way to do it because SSS uses only one number. However, you may contribute as much as you want in any given month, say, the entire money you intend to invest in 2018. The earlier you pour your money in Fleix-fund, the higher interest and yield they would get at the end of the year or at the end of maturity. Even though you have already paid the rest of your 2017 dues, you may still invest in Flexi-fund for this year if you pay your January 2018 contribution. For example, you have P100,000 right now. And let’s say, you have P1,760 for January 2018 contribution. You should contribute all of your P101,760 to your January 2018 dues. The P1,760 will go to the basic contribution and the P100,000 will go to your Flexi-fund. The P100,000 will still earn interest at the end of the year because it will be added to the earning instruments of SSS.
Next time, just pay your SSS contribution on a monthly basis because you will never know when you’re gonna have some extra cash that you’d like to put into your Flexi-fund. Besides, the last day of paying for an entire year’s worth of contribution is on the 31st of December of any given year. Also, if you missed your last 3 months of contribution (Oct-Dec), you can still pay for them until the 31st January of the following year.
2. Actually I forgot to pay Month of April 2017, I have payed from January -December 2017 , I invested already 20k plus only this year but when i Checked to the Website of SSS it shows Flexi-Fund Subsidiary Ledger Contribution is 300 Pesos? i am really Confused?
–> The total amount you paid for Jan-Dec 2017 was P21,420 (P1,760 x 12 = P21,120), which went all to the basic contribution. That’s why the money that only went to your Flexi-Fund was P300. What you should have done was pay the entire P21,420 to your January 2017 due alone. This way, the P1,760 should have gone to the basic contribution and the P19,660 should have gone to your Flexi-fund.
Good day Ms Nora,
Upon Reading your blog I got interest to ask question related on this
May I ask please if I can pay in advanced for SSS Flexi fund? i mean for the year 2018 and remaining month in 2017?? Actually I forgot to pay Month of April 2017, I have payed from January -December 2017 , I invested already 20k plus only this year but when i Checked to the Website of SSS it shows Flexi-Fund Subsidiary Ledger Contribution is 300 Pesos? i am really Confused?
looking forward to hear from you Ms. Nora
GODBLESS & more Power
Hello Ms Nora, Im an OFW and have already contributed 23 months while I was working in the Philippines and continued contributing it since 2015 until now as an OFW.Can I be granted a personal loan for house renovation? What are my requirements and where should I go to process it.Does it take a long time for them to grant me the said loan?Hope to hear from you soon.Thank you and God bless
Hi melissa, wow, your 2014 dividend rate is super high! And your compounding is monthly! Super wow! Then it’s much better to save with your Meralco association than with MP2. Thanks for sharing info.
Hi Cesar, ideally, you should be paying your savings in one branch only, to facilitate claims, but if needed, you can consolidate your savings in one branch with this form: Transfer of Member’s Records
Hi Cesar, yes, you can continue saving with MP2. That’s a good decision. Yes. Pag-ibig MID and MP2 are different numbers. Your main ID no. is Pag-ibig MID. Your MP2 saving has an account no. You can have 2 or more MP2 accounts. You can email firstname.lastname@example.org and ask your MID and MP2 numbers, so you can be sure about your numbers. Provide your personal data (name, birthdate, birthplace, gender, address, employers) so they can check.
Tita Nors, I’ve been paying MP2 in Pampanga. What If I begin paying at the bulacan branch? Won’t I have difficulty claiming later on?
Tita Nors, I’ve been paying pag-ibig 1 since 2008 for only 100 pesos a month, and also paid pag ibig 2, but was able to save only 500 pesos per month. Can I continue saving with MP2? Are Pag-ibig MID and MP2 different?
Thank you so much. I have an with meralco saving and loan assoc. Their computation for dividends is different. For example, declared dividend for 2014 was 17%. 17% will be computed from my january 2014 savings, then for succeeding months, prorated dividends, depending on the amount I saved in the succeeding months. That’s why i asked you on how MP2 dividend is computed by Pag-ibig. Again po, thanks a lot po
Hi melissa, dividends are computed annually, usually in March/April the following year. In March/April 2016, Pag-ibig will compute total earnings for the year 2015, and then decide the dividend rate for the year 2015. Past rates ranged from 4% to 5%. Your total savings as of Dec 31 2015 will be multiplied by the dividend rate — this will be your dividend for 2015. If you have saved 30k as of Dec 31 2015, your dividend will be 30k x .05 = 1,500. I based my reply on Pag-ibig’s computations shown on my TAV report and on news reports. Applause to you for saving. God bless you too.
hi Ms Nora – am a MP2 member already – just would like to inquire on how dividend is computed…DO you have any idea po? Thanks and God bless.
Hi sugar, if you’re an active Pag-ibig 1 member, even if you have existing loans, you can get your MP2 account no. and then start paying. http://pag-ibigphilippines.blogspot.com/2014/12/how-to-register-for-pag-ibig-mp2-account.html About your short-term loan: usually Pag-ibig uses members’ contributions to pay for delinquent STL loans (called offset). But you can pay your total arrears (12 x monthly amortization) and after this payment is posted, apply for a loan.
Hello Nora, I’m also interested in applying for MP2? What are the requirements. Can I still apply for this even if I have an existing housing loan and a delinquent salary short term loan? With regard to my STL loan or Salary Loan, I am already 1Yr delinquent, how am I going to settle this enable for me to qualify for a re-loan? Thank you so much. Sugar
Hi Kim, thanks again. About the double posting, it’s okay, no problem. I can just delete the 2nd comment if I see that it’s a duplicate. There are duplicates that appear from time to time, and the glitch is likely caused by our server or our template, not on your end. Continued blessings for you too.
Hi Ms Nora,
Thanks you for your prompt response. That’s what I did last week since I couldn’t get through and missed spotting the line saying “No Pag-ibig MID no.”. I enrolled myself on the Membership Registration found on the online services menu and received an sms stating my tracking number afterwards. I’ll give it a try.
Sorry about the double comment sent. I noticed that you have deleted it already. When I clicked on the Post Comment button, an error dialog box appears stating that I have already posted my comment when in fact I just clicked on it the first time after finalizing my review on my words. I’m not sure if it’s glitch from my end so I decided to remove an extra space from my composition and hit on the comment button again. Then a few moments by, just before I close off my browser, I noticed that my message here appeared twice. Should have been a bit more patient on waiting maybe a minute or two before doing that.
Anyway, thank you for the advise. More power to you. Kim 🙂
Hi Kim, thanks for appreciating my blog. Comments like yours inspire us.
About your MP2 enrollment, try clicking “No Pag-ibig MID No.”. You will need only your tracking no. If you forgot your tracking no., enroll in Pag-ibig 1 again, even if you already have your Pag-ibig MID no. You will be given a tracking no. different from your first tracking no., but you will be given the same Pag-ibig MID no. You can then use this new tracking no. in your MP2 enrollment.
I admire you for your determination to save. I wish all young people are like you. Keep going!
Good day Ms Nora,
After reading this article I get interested on enrolling myself on Pag-ibig MP2 and think of investing part of my savings there. When I started working I have been regularly setting aside a portion of my salary on savings no matter how small it is. We all know the fact that banks will not make our money grow much to our liking and more than we ever hope for.
Having read this article, I decided to give Pag-ibig website a visit right away and find my way to the online services page and click on the MP2 enrollment (https://www.pagibigfundservices.com/). However, I get stuck right after supplying the MID number for the Security Code it requires. Where do I get my security code?
Unfortunately, I don’t have my HDMF ID with me. It doesn’t have much use unlike my ATM (salary) and loyalty cards (purchases on groceries, medicines, school supplies, etc.) so I left it at home, and most probably would have to look for it this weekend. I got my HDMF ID way back in 2004 and as far as I can remember I don’t think it bears the security code on it.
Thanking you in advance for shedding light on my inquiry and thanks also for sharing information, and your thoughts on the above and other articles you have relating to this. Companies won’t bother sharing this to their employees on seminars, meetings, and updates. Its not that they don’t care but employees should find for themselves.
Keep up the good work. Maraming salamat po! Kim
Thank you Ms.Nora Sa reply…God bless at more power po
Hi Cathy, This is how to get your Pag-ibig MID no. Even if you’re not technically OFW, since you’re overseas, you can check OFW so you can check your contributions on the Pag-ibig website. Non-OFWs do not have this service. You can pay your contributions (minimum is 500 pesos for overseas Filipinos) through IREMIT, PNB or Landbank remittance partners.
About calamity loan, you can file your loan if you already have at least 24 contributions, and after your new contributions have already been posted (to show you are active).
About paying retroactively: we cannot pay contributions for past months.
Thank you very much for appreciating my efforts. Have another great day too
How are you?
Leslie is right,making tulong mo Sa amin ,really.
May problem ako about Pag ibig ko,Kasi lahat Lang sabi2x ang naririnig ko,kaya nag decide na ako magbakasakalu dito Kasi nag email na ako Sa Kabila pero walang reply same with sss,philhealth,owwa and pag ibig.
Pag ibig member ako since 1998-2009 Sa government 2010 nagbayad ako pero di napatuloy Kasi d Pala hinuhulugan Ng ano as part Ng contract ko Sa Kabila.nagbatad ulit ako tapos nag iba ako Ng employer kaya nastop.huli ko bayad is 2012,october..ngayon gusto ko Sana ipagpatuloy maghulog para naman ako makaloan Ng calamity para Sa family ko Sa eastern Samar na affected Ng bagyong Yolanda or mutual loan,is ut possible kaya makalosn if emerged nila lahat contributions ko at pwd ko kaya mabayaran mga lapses?paano ko kaya malaman number ko at paano kumuha bg MID #
Hi Leslie, thank you for appreciating my blog. Makes me very happy. Yes, the old Pag-ibig no. can be the same or different from the new Pag-ibig MID. I think it would depend on when the old number was issued. Anyway, it would not be so much a problem because when you register at pagibigfund.gov.ph to get your Pag-ibig MID no., Pag-ibig will give you the same Pag-ibig MID if they see that you already have your proper Pag-ibig MID no. This is how to get your Pag-ibig MID no.
After getting your Pag-ibig MID no., you can check your contributions on pagibigfund.gov.ph. Click E-Services. As of now, only OFWs have this service.
For Pag-ibig 1 savings (original Pag-ibig or mandatory savings), you can get your savings at age 60. Puedeng at age 45 if you’ve accumulated 240 contributions. For Pag-ibig 2 or MP2, you can get your savings after 5 years.
For housing loan, I suggest you file your housing loan while you’re still an OFW because it’s easier to prove your source of income. Also, for OFWs, the ITR is not required. If you already have at least 24 contributions (P1 or mandatory Pag-ibig), you qualify. These are the documents required for a Pag-ibig housing loan: will get back. Thank you very much again for your inspiring comments.
Dear Maám Nora,
Hi po! I am an avid reader of your blog and you helped me with my maternity claims back in 2012. Please continue this blog to inspire and to guide people. You have been such a blessing.
Anyway, I just wanted to ask again, I am continuing my Pagibig now and paying around 2k a month or sometimes less but minimum of 1k. I wanted to use this in the future as my housing loan but then I dont know how to go about it. I have seen others’ blogs telling the people that for OFWs, the old number tend to be disregarded and in fact not recognized because it is not under an employee in pinas. Parang panibago na hulugan na sha. Now I wonder, do I continue saving in Pagibig or wag nalang. Im really confused on how to get the money unlike sa sss na mejo mas madali coz you can see your contributions online. Some more, yung unified id doesn’t help as well since iba iba pa din ung number that you have to remember.
I wanted to get a housing loan in the future and refinance thru pagibig. Yet I am very confused and some more ang layo ko to do my research.
Anyway hope to hear from you soon maám nora!