SSS Pension Computation in the Philippines: All about Retirement Benefits

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Whether you dream of traveling the world or spending quality time with family, early financial planning ensures you can enjoy your retirement years without financial worries.

While the SSS pension offers a safety net for retirees, the benefits alone might not suffice and Investing in additional retirement savings plans is a smart move to ensure a comfortable life post-retirement.

With a contribution rate of 14% of monthly salary credit, set to rise by 1% every other year until 15% in 2025 (1) , it’s vital to understand how these contributions impact future benefits. Simply put, the more you contribute, the better you’ll be set for retirement.

Here’s a brief overview of the SSS retirement benefits and why they’re a key part of your retirement plan.

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What is an SSS Pension in the Philippines

The pension is a monthly monetary benefit that the Social Security System (SSS) of the Philippines assigns to its members when they reach retirement age and after they apply for retirement benefits. This can be a monthly pension or a lump sum benefit. The lump sum is an option for those who have not completed the required 120 monthly contributions to qualify for the monthly pension.

The pension amount is primarily based on the member’s number of credited years of service and average monthly salary credit, and their age at retirement. While age determines eligibility, the calculation for the pension amount involves more factors.

There are two SSS retirement ages:

• 60 years old (optional) – with at least 120 monthly contributions.
• 65 years old (mandatory)

The optional retirement age of 60 is given that the member has completed at least 120 monthly contributions.

On the other hand, mining workers are exempted as they can retire at 55 (optimal age) or 60 and above (mandatory retirement age).

How to Compute SSS Pension in the Philippines

Members of the SSS can figure out their monthly pension in two ways: by hand or through the online sss pension calculator based on contribution. A common concern among SSS members is determining the amount they will receive as their SSS pension. This amount is primarily influenced by the contributions paid, the duration of membership in SSS, and the presence of dependent minor children.

To compute the SSS pension, three different formulas are applied. The one that results in the greatest amount will be used to finalize the pension value:

Sample Computation of the SSS Pension

Let’s apply the same SSS pension formula to a different scenario, making it easier to understand through a practical example.

Imagine a person, who has a monthly salary of ₱40,000 and has been contributing to the SSS for 35 years. Based on the latest SSS contribution table, their Average Monthly Salary Credit (AMSC) is ₱40,000.

Here’s how SSS pension would be computed:

Monthly Pension (MP) = ₱300 + (20% of AMSC) + [2% of AMSC x 25 years (35 years – 10)] + ₱1,000

MP = ₱300 + (0.20 x 40,000) + (0.02 x 40,000 x 25) + ₱1,000

MP = ₱300 + ₱8,000 + ₱20,000 + ₱1,000

Monthly SSS Pension = ₱29,300*

*This example is simplified and does not take into account any potential changes in contribution rates or other factors that may affect the final pension amount.

Online SSS Pension Calculator

Alternatively, if you don’t have the time to compute your SSS pension, you can consult the SSS Retirement Calculator (Benefit Estimator) (2) at sss.gov.ph website.

To compute your estimated SSS pension, just input your date of birth, the month and year that you started as an SSS member (started working or started your business), and your monthly salary or earnings. You will receive an approximate pension figure based on these criteria.

Here’s what the SSS pension calculator for voluntary members, employed and self-employed looks like on the website:

The calculator will also show two pension figures: your monthly pension when you retire at 60, and your monthly pension when you retire at 65. The latter amount is higher.

Take note that the computed amount of retirement benefits is just an estimate and may differ from the actual amount.

How can i check my sss pension online?

1. Register for a My.SSS Account: First, sign up for a My.SSS account at the official SSS website. Complete the registration process if you haven’t done so.
2. Log In: Use your user ID and password to log in. If you’ve forgotten these, the login page provides a way to reset them.
3. Navigate to Contributions: Hover over “Inquiry” on the main menu, then select “Contributions” to see your contribution history.
4. View Your Contributions: Examine the table of contributions for accuracy. Contact SSS or your employer for any discrepancies.
5. Use the SSS Mobile App: For convenience, the SSS mobile app offers quick access to your contributions after logging in.

What deductions might reduce my SSS retirement benefit?

Your SSS retirement benefit might not be paid out in full due to certain deductions applied by the SSS, if applicable. These can include any unpaid loans from SSS, any overlaps in sickness and partial disability benefits you’ve received, and adjustments for overpaid pension amounts that could occur with changes in your family status, such as the death of a dependent, getting employed after retirement, or getting married.

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SSS Pension Requirements

There are two ways to qualify for SSS retirement benefits. First, you must be an SSS member that is aged 60 and have been separated from employment or self-employment. You must have made at least 120 monthly contributions before the semester of your retirement. However, they can receive a lump sum payment that is equal to the total amount contributed plus interest.

Another way you can qualify is if you are an SSS member who is 65 years old and employed or not. You must have at least 120 monthly contributions before your semester of retirement.

Who Qualifies for the SSS Pension

Requirements for retirement benefits for employed, self-employed and requirements for SSS pension for voluntary members are the following:

• At least 55 years old and separated from employment or self-employment, if you’re an underground mineworker
• At least 60 years old, whether you’re still employed/self-employed or not, if an “underground mineworker” (technical retirement)
• You’re a total disability pensioner who has recovered from disability and is at least 60 years old (or at least 55 if an underground mineworker)
• A former retiree-pensioner whose monthly pension was suspended due to reemployment/self-employment and is now separated from employment or has ceased to be an SE
• A member who is 60 years old and above, but not yet 65, with 120 contributions or more may continue paying as VM up to 65 years old to avail of the higher amount of benefit

The SSS also has pension requirements for beneficiaries. To be considered a dependent, you must be:

A legitimate, legitimated, legally adopted, and illegitimate child who is:

• Unmarried
• Not gainfully employed
• Has not yet reached 21 years old; if already over 21 years old, you must be congenitally incapacitated or while still a minor when incapacitated
• A child who is in a common-law relationship and has not yet reached 18 years old

This table encapsulates both the retirement eligibility criteria for SSS members and the requirements for beneficiaries in a structured and easy-to-understand manner

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Required Documents for SSS Pension Application

To apply for retirement benefits, ensure you have these necessary documents ready:

• Fill out the Retirement Claim Application (RCA) Form (3) or the Application for Disability Retirement Benefit Form (applicable under the Portability Law) (4).
• Present an SSS ID, UMID card, or the receipt stub from SS Form E-6 (5) along with two other valid forms of identification (at least one should include a photograph and signature).
• Provide the original and a photocopy of your bank passbook, ATM card displaying your name, a bank-confirmed deposit slip, or a Cash Card Enrollment document.
• Submit a 1 x 1-inch photograph.

For those appointing a representative to submit a retirement claim:

• The appointed person must show a primary ID (SSS ID, UMID, PRC card, Seaman’s Book, or Alien Certificate of Registration) or two alternative forms of identification.
• A Letter of Authority (LOA) signed by the SSS member or a Special Power of Attorney (SPA) detailing the representative’s filing and signing privileges is required.
• Specific additional documents may be requested for unique circumstances (e.g., for individuals aged between 60 to 64, SSS employees, or underground mine workers).

Retirement benefits claims can be processed at any SSS office, through a designated representative or online application using the My.SSS portal.

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How to Apply for an SSS Pension

Applying for an SSS pension is a lot easier now thanks to the Internet. If you’re looking for a copy of the SSS retirement form, you can go to the SSS website.  To be eligible for online application, members must have a registered disbursement account through the My.SSS Bank Enrollment Module, which includes options like UMID-ATM, UBP Quick Card, or any bank accredited by PESONet.

Here’s how you can apply for an SSS retirement benefit or claim online:

• Go to the My.SSS member portal (6) then log in to your account. If you don’t have a My.SSS account yet, you can register using your email address.
• Go to the E-Services menu. Enroll your disbursement account/s in the Disbursement Account Enrollment Module (DAEM).
• Once you have approved DAEM account/s, you can file your retirement claim form under the SSS E-Services menu.
• Once approved, you will receive your retirement benefit on your chosen disbursement account. The benefit will be remitted to your designated bank.

Receiving Your SSS Pension

Applicants are advised to set up a dedicated savings account for their pension, providing a copy of their passbook, ATM card, the first deposit slip, bank statement, or enrollment form for a Visa Cash Card as part of the process.

Pensions from SSS are deposited through a chosen bank, preferably one close to the beneficiary’s residence. In addition, you can receive your SSS retirement benefit in two ways.

• If you opt for the lifetime monthly pension, you will receive your benefit right after filing for a retirement claim.
• If you choose the lump sum payment option, you can receive the first 18 months of your pension at a discounted rate. It will resume on the 19th month.

Take note that the benefits of SSS monthly pensioners will be suspended if they reach the age of 60 and choose to work again.

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Types of SSS Retirement Benefits

The SSS offers two types of retirement benefits for its members.

• The first is a SSS monthly pension, which is a lifetime cash benefit for a retired member with at least 120 monthly SSS contributions before the semester of retirement
• On the other hand, a lump sum amount will be given to a member-retiree who has not paid the required 120 contributions. The amount is equal to the member and his employer’s paid total contributions plus interest
• Member-retirees are entitled to receive a 13th month pension payable every December, similar to a Christmas bonus

Additional Retirement Benefits:

👉 PhilHealth Membership: Other retirement benefits available to SSS members include automatic National health insurance membership for those who are not yet members after 65 years.

👉 Hospitalization Coverage: While SSS doesn’t offer direct hospitalization benefits, PhilHealth covers these for retirees and their dependents. Hospitalization benefits for a retiree and their dependents only available to those with 120 contributions.

👉 Dependent’s Allowance: SSS provides a dependent’s allowance for up to five minor children of the pensioner, offering either 10% of the pension or Php 250 per child, until they turn 21 or for incapacitated children who cannot support themselves.

If an SSS member dies, the people they have named as their main beneficiaries at the time they retired will receive the full amount of the pension. However, if the member dies within 60 days after their monthly pension payments begin and didn’t name any main beneficiaries, then the backup beneficiaries will get a one-time SSS payment. This payment covers what would have been five years of pension payments, but it doesn’t include any extra money for dependents

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How to increase your SSS pension

But what if you’re worried about your pension not being able to sustain your retirement? Here are some tips on how to increase your SSS pension:

• Ensure Eligibility for Monthly Pension: Confirm that you’ve made at least 120 SSS contributions before applying. This threshold guarantees eligibility for continuous monthly pensions, a more beneficial arrangement than the lump-sum payment available to those with fewer contributions. Use the online SSS potal to check your contribution count.
• Continue Contributions After 120 Payments: Even after reaching the 120-contribution mark, keep contributing as a voluntary member until you’re 65 to augment your retirement benefit.
• Catch-Up Contributions for Late Starters: If you’re 65 or older and haven’t yet met the 120 monthly contribution requirement, you’re allowed to make voluntary contributions for up to 120 months. This enables you to qualify for monthly pension benefits.
• Wait Until 65 to Claim Pension If Working: If you intend to work beyond retirement age, it’s advisable to delay your pension claim until you’re 65. The SSS pauses monthly pensions for members under 65 who re-enter the workforce.
• Maximize Your Contributions: Aim to contribute at the highest possible rate relative to your salary. This increases your pension amount.
• Avoid Loan Penalties: Stay on top of your SSS loan repayments. Late payments can incur penalties and reduce your eventual pension amount.
• Maintain Continuous Contributions: Make sure that you’re paying your SSS contributions continuously to get a higher average monthly salary credit.

The SSS also offers pension loans for senior citizens online. Under the enhanced Pension Loan Program (PLP), qualified retirement pensioners can avail of loans equal to 3, 6, 9 or 12 times their basic monthly pension (BMP) plus a Php 1,000 benefit. The loanable amount must not exceed the maximum limit of Php 200,000.

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To qualify for PLP, a retirement pensioner:

• Must be 85 years old at the end of the last month of the loan term
• Must not have any outstanding SSS loan balance and benefit overpayment payable
• Must not have any existing advance pension under the SSS Calamity Assistance Package
• Must be receiving their regular monthly pension for at least 1 month with an active status

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Articles sources

• 1. SSS implements contribution hike
• 2. SSS Retirement Calculator - Estimator on SSS website
• 3. Retirement Claim Form on SSS website (PDF)
• 4. DDR Portability Application Form on SSS website (PDF)
• 5. SSS-E6 Form on DLSU website (PDF)
• 6. Member Page on SSS website

Authors

Alyssa Divina

Author pages:

Alyssa Divina pens blog articles about a wide range of topics, such as money matters and government transactions in the Philippines. Prior to joining Digido Finance Corp., she served as a journalist for Charlton Media Group, a business news magazine, for two years. She holds a degree in Journalism from the University of the Philippines Diliman.

Anna Kireeva

Author pages:

Anna is a marketing communications professional who specializes in digital marketing strategies and long-form content.

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