As an SSS member, you are entitled to retirement benefits as soon as you hit your 60s. This can be a lump sum amount that you can use to start a small business, or go on a trip as a reward to yourself. Or you can choose to receive a monthly pension, as if you are still being salaried monthly by an employer.
Can you at least have a ball park figure of how much pension you can expect to receive from the SSS later on? You may still have about 40 years ahead of you before you hit your 60s but it won’t hurt to get a glimpse. This way, you can think of alternative ways to secure your finances when you finally become a Senior Citizen.
SSS follows three formulas when computing for a member’s pension. Keep in mind too that the amount of your pension will largely depend on the salary you received during your employment years, and the amount of contribution you religiously remitted to the system.
If your monthly salary is P30,000.00 and you decide to retire at the age of 60, and you have a total of 30 years of employment behind you with 30 years’ worth of contributions, your pension will be based on whichever amount is higher based on the following calculations:
Example: Average total contribution is P1,790.00 x 30 years x 12 months = P644,400.00
a. The sum of P300 + 20% of average MSC + 2% of the average MSC for each credited year of service in excess of 10 years.
P300 + 20% (AMSC) + 2% (AMSC) for each year of service in excess of 10 years
P300 + (P16,000*20%) + (P16,000 *2%*20 years)
P300 + P3,200 + P6,400
b. 40% of the AMSC
P16,000 * 40%
c. P1,200 if the CYS is at least 10 but less than 20; or P2,400 if the CYS is 20 or more.
Pension: P2,400 since you have more than 20 CYS.
Given the above, the retiree will be granted the P9,900 pension as it is the highest value yielded by any of the formulas.
Remember that you shall qualify as a pensioner only if you have contributed at least 120 months or 10 years to the SSS. If not, you shall be granted a lump sum amount equivalent to your total contribution plus interests.
Most of us may still have about 20 or so years to go before we start thinking about retiring and claiming our monthly pension; but if we start right now, we would be reaping the rewards in due time. It is our responsibility to ourselves and our families to secure our future and make sure that we shall be properly compensated for all the hard work.
One way to monitor the timely and proper posting of your contributions is by creating an online SSS account. This way, you can check all the details of your SSS account even without going to an SSS office.