mamaravesph's blog: How to Compute for Your SSS Monthly Pension (UPDATED)

Is Your Monthly SSS Pension Enough for your Retirement?

Is it? Do you know how much will you get from your SSS contribution when you retire?

A lot of Filipinos are depending on their SSS contribution hoping it will be sufficient enough for their retirement. I cannot say much because it will depend on your contribution and your need that time. I researched this online through the SSS website and I hope I can shed some light on that particular question.

First, you need to know the bracket of your salary and how much contribution you and your employer gives to SSS. For your reference, here is the table below:

Second you need to know your Average Monthly Salary Credit. To know your AMSC, please refer to column 2 of the table above.

Please be guided that there is a maximum of Php16,000 AMSC. So no matter how much you want to make your SSS pension higher by making sure you get a salary increase each year from your employer, there is a ceiling amount for that.

This data is from http://www.sss.gov.ph/sss/printversion.jsp?id=53&file=ben3000.html.

How much monthly pension will a retiree receive?

The monthly pension depends on the members paid contributions, including the credited years of service (CYS) and the number of dependent minor children but not to exceed five. The amount of monthly pension will be the highest of:

1.) the sum of P300 plus 20 percent of the average monthly salary credit plus 2 per cent of the average monthly salary credit for each accredited year of service (CYS) in excess of ten years; or

2.) 40 percent of the average monthly salary credit; or

3.) P1,200, provided that the credited years of service (CYS) is at least 10 or more but less than 20 or P2,000, if the CYS is 20 or more. The monthly pension is paid for not less than 60 months.

A retiree has the option to receive the first 18 monthly pension in lump sum discounted at a preferential rate of interest to be determined by the SSS. The option should be exercised upon filing of the first retirement claim. Only advance payments shall be discounted on the date of the payment. The dependents' pension and 13th month pensions are excluded from the 18 months lump sum pension.

The member will receive the monthly pension on the 19th month and every month thereafter.

This is an excerpt from https://www.sss.gov.ph/sss/index2.jsp?secid=73&cat=4&pg=null

For example:

Given: Mr. A worked for 30 years, Monthly salary is Php30,000/month at age of retirement and Mr. A is now 60 years old and eligible to retire.

How much monthly SSS pension do you get?

Monthly SSS Pension = (AMSC) 20% + (AMSC) 2% for year of service in excess of 10 years + Php300

*AMSC = Average Monthly Salary Credit. So, to compute for your monthly pension:

Monthly SSS Pension = (Php16,000) 20% + ((Php16,000) 2%)20 + Php300

Monthly SSS Pension = Php3,200 + Php6,400 + Php300

Monthly SSS Pension = Php9,900

*Please take note of Php16,000 maximum Average Monthly Salary Credit. Even if Mr. A is earning Php30,000 at the time of his retirement, his AMSC is only Php16,000. Or you will get:

40% of your Average Monthly Salary Credit

Monthly SSS Pension = (Php16,000) 40%

Monthly SSS Pension = Php6,400

According to the guide from the SSS website, you will get the higher value, so you will be given the Monthly SSS Pension of Php9,900. That gave you the answer.

But the real question here is.. Is Php9,900 enough for you to retire? Is it enough for you to depend on that money? You decide.

The key here is RETIREMENT PLANNING. But that is a different topic. ;)

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