HOW TO CALCULATE SSS PENSION 2023 – You can check the details below if you want to compute your estimated pension from the Social Security System.
One of the best ways to prepare for your retirement years is to maintain an account to a social insurance institution in the pursuit of a retirement benefit. In the case of the Social Security System, it has either a monthly pension or a lump sum under its Retirement Benefit offer. You can calculate your estimated SSS pension if you wish to know the amount.
SSS Pension Computation — Here’s How You Can Calculate Your Retirement Benefit
Guide on SSS Pension Computation for Member-Retirees
SSS PENSION COMPUTATION – Here is a guide on how you can calculate an estimate of your Retirement Benefit from the Social Security System.
A lot of Filipinos are Social Security System members or more popularly called SSS. It is a state-run social insurance institution in the country and one of the giants in the field. Its member population is composed of people from different walks of life.
Most of the members of the SSS are employees of the private companies in the Philippines. Most firms mandate SSS membership to its employees to widen the resources of the workers. There are also a lot of self-employed members of the state-run social insurance institution as well as overseas Filipino workers (OFWs).
SSS members have benefits to turn to in times of sickness, maternity, retirement, etc. Undeniably, among the benefit offers, the one that most workers turn to is the Retirement Benefit.
The Retirement Benefit is for members who reached 60 years old and stopped working due to old age. Under this benefit offer, the retiree may avail either an SSS monthly pension or an SSS lump sum.
SSS retirees who have reached a total of 120 monthly contributions may be eligible to claim the monthly pension while retirees who have not reached the said total number of contributions may get the lump sum or continue paying until they get the required number of contributions before they turn 66 years old.
Surely, what most members look forward to is the monthly pension. That is why many are curious about the SSS Pension computation.
With regards to the SSS pension computation, there are three (3) different manual ways to get an estimate of the retirement benefit that you might get. Here are the sample formula:
- Php 300 + 20% of average monthly salary credit (AMSC) + 2% of AMSC for each credited year of service (CYS) in excess of ten years + Php 1,000
- 40% of the average AMSC + Php 1,000
- Php 1,200 if CYS is somewhere between 10-20 years; Php 2,400 if CYS is 20 years or more + Php 1,000
The amount that the pensioner will get depends on the formula that will yield the highest amount. Let us use the first formula which has the biggest chance of getting the highest result in an example. If SSS member-retiree Lucas is earning Php 25,000, has contributed for 30 years and the AMSC is Php 26,000, here’s how to compute the SSS monthly pension:
- Monthly Pension (MP) = Php 300 + (20% of AMSC) + [2% of AMSC x 20 years (30 years – 10)] + Php 1,000
- Monthly Pension = Php 300 + (0.20 x 20,000) + (0.02 x 20,000 x 20 years) + Php 1,000
- Monthly Pension = Php 300 + P4,000 + Php 8,000 + Php 1,000
- Monthly Pension = Php 13,300
The monthly pension stated above is only a rough estimate based on the given situation. There are other factors that might affect the total pension like the loans and benefits availed by the member-retiree.
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