To be clear, the SSS pension alone will not be sufficient to support one’s retirement. Therefore, young Filipinos should start investing in a retirement savings plan early on to secure their future and enjoy a comfortable retirement.
It’s important for all SSS members to understand how to calculate their SSS pension as it will serve as a steady source of income during their retirement years.Got Enough for Retirement? Check This SSS Pension Computation Guide Although the amount may not be enough for a lavish lifestyle, it’s still better than having no pension at all.
To ensure that SSS members receive substantial benefits in their retirement, they must consistently pay their contributions. Currently, the contribution rate is 13% of an employee’s monthly salary credit and will increase by 1% every other year until 2025.
It’s crucial to manage expectations and have a clear understanding of the expected SSS pension amount in the future. Thus, it’s advisable to use a calculator and learn about SSS pension computation through a guide.
How to Compute SSS Pension
There are two ways to calculate a member’s monthly SSS pension: manually or online using the SSS website.
Manual SSS Pension Computation
Many SSS members wonder, “What will be my SSS pension?” The amount of the monthly pension from SSS is determined by the number of paid contributions, the number of active years as an SSS member, and the number of dependent minor children.
There are three different formulas used to calculate the SSS pension, but the formula that provides the highest amount will be used to determine the final pension.
Let’s focus on the first formula, as it will most likely yield the highest possible pension. However, the formula can be confusing to understand when written down, so let’s apply it in a specific scenario.
For example, let’s consider Senior Citizen John, who earns ₱30,000 and has contributed to SSS for 40 years. According to the current SSS contribution table, his AMSC is ₱20,000.
Using the first formula, his SSS pension computation will be:
Monthly Pension (MP) = ₱300 + (20% of AMSC) + [2% of AMSC x 30 years (40 years – 10)] + ₱1,000
MP = ₱300 + (0.20 x 20,000) + (0.02 x 20,000 x 30) + ₱1,000
MP = ₱300 + ₱4,000 + ₱12,000 + ₱1,000
Monthly SSS Pension = ₱17,300
Please note that this SSS pension computation does not take into account inflation. For a more accurate estimate of your expected pension, please consult your local SSS office.
Online SSS Pension Calculator
To simplify the process of computing for the SSS pension, you can use the SSS Retirement Benefit Estimator available on the SSS website. This tool only requires the birth date of the SSS member, the month and year they became an SSS member, and their monthly salary. After entering the captcha code, simply click the Compute button and the calculator will provide two sets of SSS monthly pensions – one for retirement at 60 years old and another for retirement at 65 years old. The SSS pension for the age of 65 is higher compared to the pension for 60-year-old retirees.
Who is Qualified for SSS Retirement Benefits?
The SSS pension is a form of payment given in cash to members who can no longer work due to old age. To be eligible for retirement benefits, an SSS member must meet certain requirements. Individuals who are 60 years old and no longer employed or self-employed, must have made at least 120 monthly contributions to the SSS prior to the semester of their retirement. Those who are 65 years old, whether employed or not, must have also made at least 120 monthly SSS contributions prior to the semester of their retirement.
What are the SSS Pension Requirements?
Prior to submitting a request for retirement benefits, it is important to gather the necessary SSS retirement claim requirements. These requirements include the completed Retirement Claim Application (RCA) Form or Application for DDR Benefit Form (if applicable), a valid form of identification such as an SSS ID, UMID card, or SS Form E-6 Acknowledgment Stub with two valid IDs (at least one with a photo and signature), an original and photocopy of a passbook/ATM card with the name or a copy of a bank-validated deposit slip or Cash Card Enrollment form, and a 1×1 photo.
If a representative will be submitting the retirement claim on behalf of the retiree-member, there are additional requirements to prepare. These include the authorized representative’s primary ID (SSS ID, UMID, PRC card, Seaman’s Book, or Alien Certificate of Registration) or two secondary IDs and a Letter of Authority (LOA) with the SSS member’s signature or Special Power of Attorney (SPA) that specifically states the authority to file on behalf of and sign for the member.
The SSS may require additional supporting documents for special cases, such as members aged 60 to 64, SSS employees, underground mineworkers, and others. Retirement benefit claims may be submitted at any SSS branch or representative office.
SSS Pension Application
SSS members have the choice of two methods to file for retirement benefits: applying in person by visiting an SSS branch, or using the My.SSS portal for online applications.
If the member opts to apply in person, they or their representative must provide all the necessary documents at the nearest SSS branch.
Qualifying Conditions for Filing an SSS Retirement Claim Online
The Social Security System (SSS) has specific conditions that must be met before members can apply online. Firstly, they must have a disbursement account enrolled in Mine.SSS’s Bank Enrollment Module, which can include UMID-ATM, UBP Quick Card, or any PESONet-accredited bank.
If the SSS member is applying for a monthly pension, they must have made at least 120 monthly contributions to the SSS before the semester of claiming. On the other hand, if the member is filing for a lump sum benefit, they need to have at least one posted monthly contribution, no dependent child/children, and no outstanding loan balance under the Vocational Technology Loan, Educational Loan, Stock Investment Loan, or Privatization Fund Programs, and no canceled or multiple SSS number/s.
SSS Online Pension Application
Here are the steps to file for a retirement claim via Mine.SSS Portal:
- Visit the SSS website at www.sss.gov.ph and log in to My.SSS.
- Click Member Account.
- Click Submit Retirement Claim Application under the E-Services tab.
- For Covered Employee, enter the date of separation.
- Check that the address, contact information, employment history, and other personal details are correct. Then proceed to check your eligibility for the retirement benefit.
- Answer the questions regarding employment as a mineworker and racehorse jockey and having dependent children.
- If qualified, you’ll receive the proceeds in your UMID-ATM, or the bank account enrolled in the Bank Enrollment Module.
How You Will Receive Your SSS Pension?
To apply for retirement benefits from the Social Security System (SSS), individuals need to open a savings account and provide a copy of their passbook, ATM card, initial deposit slip, bank statement, or Visa Cash Card enrollment form. The SSS will then send pension payments to the designated bank branch closest to the individual’s residence. Retirement benefits can be received through direct deposit or through a Visa Cash Card.
Lifetime monthly pension. The monthly pension will commence once the retirement benefit application is submitted. However, if the member chooses to resume employment after turning 60, the monthly pension payment will be put on hold until they reach the age of 65.
Lump-sum payment. SSS members have the option to receive their first 18 months of pension at a reduced rate set by the SSS. After that period, their monthly pension will return to its regular amount.
The lump sum referred to in the SSS pertains to the total amount of contributions made by the member and their employer, plus any accumulated interest.
Possible Deductions in SSS Retirement Benefit
Some members may not receive the monthly pension in full because SSS deducts the following when applicable:
- All unpaid SSS loans
- Overlapping SSS sickness and partial disability benefits
- Overpaid pension due to dependent’s death, employment, or marriage
Other SSS Retirement Benefits in the Philippines
The SSS Retirement Program offers more than just a pension. Retirees will also receive additional benefits, including:
- A 13th-month pension is paid every December
- Automatic PhilHealth membership if the member is not already a member after turning 65
- PhilHealth hospitalization benefits for both the member and their dependents (provided that the member has made at least 120 PhilHealth contributions)
- A dependents’ allowance is equal to 10% of the pension or ₱250, whichever is higher. The allowance is limited to five children, regardless of their blood relation or legitimacy. The allowance will continue until each child reaches the age of 21.
- Upon the member’s death, their primary beneficiaries listed as of the date of retirement will receive 100% of their pension.
- If the member passes away within 60 days of receiving the monthly pension and has no primary beneficiaries listed, the secondary beneficiaries will receive a lump-sum SSS benefit equal to the five-year guaranteed period, excluding the dependents’ pension.
Some Tips to Maximize Your SSS Retirement Benefit
When is it acceptable to cease paying SSS contributions? Is it possible to withdraw SSS contributions after a decade? According to Edgar Cruz, the chief actuary of SSS, not all of the 40.97 million members of SSS consistently make payments, putting their retirement benefits at risk. As a result, an estimated 20 million members may not receive significant insurance coverage.
To boost your SSS pension, consider the following suggestions:
Only apply for a pension once you are confident that you have made the required minimum of 120 SSS contributions. This guarantees that you will receive monthly pensions, which are preferable to one-time lump-sum cash payments given to members with less than 120 contributions. Check your posted contributions online to verify your total contributions.
Continue paying your SSS contributions as a voluntary member until you turn 65, even if you have already made more than 120 contributions. This will result in a higher retirement benefit.
If you are 65 or older but have not yet made the necessary 120 monthly contributions, you can choose to pay voluntary contributions for up to 120 months. This way, you can fully enjoy the monthly pension benefits of SSS.
If you plan to continue or resume regular or self-employment during your twilight years, claim your SSS pension at age 65 (not earlier). SSS suspends the monthly pension of members below 65 who are returning employees.
SSS Pension Computation FAQs
1. How many months of contributions do you need to avail of the SSS pension?
To be eligible for a monthly pension upon retirement, it is necessary to have made a minimum of 120 paid monthly contributions per semester. In case the total contributions made to the Social Security System (SSS) fall short of the required 120, the member will receive a one-time payment instead of a monthly pension.
2. How to compute the SSS pension of voluntary members?
The pension calculation for voluntary members is identical to the one described earlier. To calculate your retirement benefits as a voluntary member, you can utilize the SSS pension calculator. Furthermore, the requirements for SSS pensions for voluntary members remain unchanged.
3. How to compute for the AMSC in SSS?
To determine the Average Monthly Salary Credit for SSS members, you can follow this formula: Ad up the last 60 monthly salary credits before the contingency semester and divide it by 60. If this result is lower than the sum of all monthly salary credits paid prior to the contingency semester divided by the number of monthly contributions paid during that period, then use the latter as the AMSC instead.
For example, if your monthly salary credit is 20,000 pesos and you want to calculate your AMSC, you can either multiply 20,000 by 60 or by the number of paid monthly contributions made a semester before the contingency (or two consecutive quarters before retirement), whichever is greater.
4. How to compute the SSS pension for OFWs?
The same computation illustrated above applies to OFWs. Try doing your own calculations with the help of the pension calculator from SSS.
5. How much is the maximum SSS pension?
The computation of your SSS pension is based on the monthly salary credit and the number of years that you paid your SSS contributions. The higher the MSC and the longer you pay your contributions, the higher your SSS monthly pension will be. Retirees in the Philippines can receive as much as ₱18,495. The minimum monthly pension is ₱2,000.
6. When is the best time to claim your SSS pension?
What is the ideal age to start receiving your SSS pension? Is it 60, 65, or beyond? It is advisable to claim your pension at 65 or beyond because you can increase your contributions before retiring, which will result in a higher pension amount.
However, there are also benefits to claiming your SSS retirement benefit earlier. If you do so, your qualified dependents can receive 10% of your pension. Additionally, if you pass away, your primary dependents will receive a 100% monthly pension.
7. What is the technical retirement age of a mineworker?
The official retirement age for underground miners who have made less than 120 monthly payments is 60 years old. If they choose to retire early, they can do so at 55 years old. However, they can still make contributions voluntarily to reach the required 120 payments and receive their full pension benefits.
If you have parents or other older family members who have been paying SSS contributions for years and are nearing retirement, this guide should give you the basics of SSS pension computation and answers to frequently asked questions about SSS pension.
As earlier mentioned, the SSS retirement benefit won’t be enough to fund their daily living expenses during their retirement years, but it can supplement another pension or retirement fund.
As early as now, start mapping out your own golden years. To supplement the SSS pension, consider investing in stocks and real estate and build your retirement fund.
-  SSS Contributions Table and Payment Schedule (SSS Facebook Page)
-  SSS Retirement Benefit Estimator
-  Retirement Claim Application
-  Application for Death/Disability/Retirement Benefit Form
-  SSS List of Valid IDs and Documents
-  SSS raises alarm on pension benefits (The Philippine Star, September 2022)
-  Average Monthly Salary Credit (Social Security Act of 201