PERSONAL Equity and Retirement Account (PERA) contributions surged to P457.8 million as of end-June as more people signed up for the voluntary savings program, data from the Bangko Sentral ng Pilipinas (BSP) showed.

The tally is 24.4 percent higher than the year-earlier P367.9 million, and the number of contributors grew by 5.3 percent to 5,686 from 5,402.

Employed individuals contributed the most to the fund, with P315.7 million coming from about 4,024.

In addition, 782 overseas Filipino workers invested a total of P78.77 million, while 880 self-employed individuals added P63.12 million.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the increase in contributions was likely driven by favorable investment conditions.

"There is still room to further increase voluntary retirement funds ... by deploying more surplus funds as investments that issuing businesses/companies may also tap as alternative source of financing other than borrowings from banks," he added.

"This would also help increase investment returns by retirees to prepare as early as possible their future retirement funds/pensions to complement SSS (Social Security System) or GSIS (Government Service Insurance System) pensions."

The PERA program was launched by the BSP in 2016 by virtue of Republic Act 9505. The voluntary retirement savings program aims to support state-based pension plans and employer-sponsored retirement plans.

Opening a PERA is regarded as a superior retirement savings option owing to tax perks such as exemptions on earnings.