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.
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