SSS Retirement Benefit Claims and Computation Guide [2024]

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Written by Emie Rose Navarro

How to apply for SSS retirement benefit?

SSS Retirement Benefit Claims and Computation Guide
SSS Retirement Benefit Claims and Computation Guide

Reaching the age of retirement is a significant milestone for everybody, especially those who are in the workforce. During this time, retirees live off their pension and spend more time with their families.

Some people may decide to pack their bags and travel the world, while others want to spend more time with their families. This kind of life is what they deserve after years of labor. 

But before you can enjoy these benefits, you must first ensure that you are up to date with your Social Security System (SSS) payments. The program gives a monetary benefit to an SSS member who can no longer work due to old age.

Below, we provide an explainer on how the SSS retirement pension benefits work.

How much will you get from SSS when you retire?

How much is the SSS retirement benefit?
How much is the SSS retirement benefit?

Your paid contributions and the number of service years credited determine how much you will get as SSS retirement pension benefits. The greater your contributions and years of service, the larger your monthly pension will be.

Moreover, there are two ways to claim your SSS benefits: as a lifetime cash benefit paid to you or as a lump sum amount.

Choosing the lifetime cash option means you will get your retirement benefit claims every month, like a salary.

Conversely, the lump sum option allows you to withdraw your pension as a one-time payment in its entirety.

How to compute your SSS retirement pension?

  • Determine your salary credits
  • Calculate your years of service
  • Factor your age of retirement
  • Consider your dependents

Determine your salary credits each month

Find your monthly income for the previous five years by looking through your records. A system of income brackets is used to determine how many salary credits you are entitled to each month; the higher your monthly income, the more salary credits you are entitled to.

You must know what income category your monthly income comes into in order to calculate your monthly salary credits. The monthly income categories are shown on the official SSS chart.

Calculate your credited service years

You must total the years you have paid into the SSS in order to determine your credited years of service. Additionally, you can see this data on your SSS contribution record.  

Other factors influence the amount of your SSS pension, in addition to the monthly salary credit and the credited years of service.

Factor in your age of retirement

For SSS members, 60 is the retirement age. Nevertheless, you could choose to retire at age 65 to obtain a higher pension.

Consider your dependents

You are eligible for additional benefits if you have dependents like a spouse or children. Your dependents may be granted a lump sum benefit equal to 60 months of your pension or a monthly pension equal to 10% of your pension. 

Who qualifies for SSS retirement?

When a member of SSS becomes old enough to retire from work, they will get a cash benefit known as a pension. To be eligible for retirement benefits, an SSS member must fulfill the following requirements:

  • Optional retirement: At least 60 years old, no longer employed or self-employed, an OFW, or a housekeeper.
  • Technical retirement: At least 65 years or older, whether employed, self-employed, working as an OFW, or working as a housekeeper.
  • At least 120 total contributions before the retirement semester.
  • A total disability pensioner who is at least 60 years old (or at least 55 years old for underground mine workers)

For members with less than 120 monthly contributions:

  • They may receive a lump sum equal to their total contributions
  • To qualify for the monthly pension, they may make additional contributions to complete the minimum 120 months requirement

How much is the SSS retirement benefit?

The SSS retirement benefit is based on member contributions and retirement age. 

A member’s monthly SSS pension can be calculated online using the SSS website or manually.

SSS Pension Calculation

An SSS monthly pension is mostly based on three things:

  • contributions made
  • number of years that a member has been actively contributing (CYS)
  • the number of dependent kids they have

SSS provides three formulas to calculate pensions. But which one should you use? Generally, the formula that applies is the one with the greatest yield.

  1. Based on creditable years of service (CYS)
    • a. If the CYS is between 10 to 20 years: Php 1,200
    • b. If the CYS is 20 years or more: Php 2,400 + Php 1,000
  2. If more than ten (10) years: 20% of the average monthly salary credit (AMSC) + Php 300 and Php 1,000 + 2% of the AMSC for every credited year of service over ten years
  3. Average AMSC: Php 1,000 + 40% of Average AMSC

Note the following in the computation:

  • AMSC is the average monthly salary credit in the last 60 months before retirement or disability
  • CYS counts the number of years you have contributed to SSS (10 years maximum)
  • The pension percentage is based on a multiplier table that factors your age and CYS.

Sample SSS Monthly Pension Computation

Using the second SSS pension formula (highest yield), a simplified SSS computation is as follows.

Suppose a senior citizen has the following:

  • Php 50,000 salary
  • SSS contributions for 15 years
  • AMSC of Php 25,000

Here is how the SSS pension cash benefit granted will be calculated:

Monthly Pension = 300 + (20% of average monthly salary credit) + [2% of average monthly salary credit x 30 years (40 years – 10)] + ₱1,000

= 300 + (0.20 x 25,000) + (0.02 x 25,000 x 30) + ₱1,000

= 300 + ₱5,000 + ₱15,000 + ₱1,000

SSS Pension monthly = Php 21,300

You may also check an estimate of your monthly pension using the SSS pension calculator.

What are the benefits of retirement in SSS?

Aside from the cash benefit monthly, qualified members of the SSS retirement pension are also eligible for the following benefits:

Automatic PhilHealth Registration

Retired members who are not currently PhilHealth members will be automatically registered in the program and have access to its benefits.

13th Month Pay

Retired members who made at least one contribution in the calendar year are eligible for a 13th-month salary equivalent to one-twelfth of their annual retirement income.

Funeral Benefits

The primary beneficiaries or closest living relatives will receive a one-time cash reward equal to the members-only pension times the number of years of service.

How much is the maximum SSS pension?

As of 2024, the maximum Social Security System (SSS) pension in the Philippines is Php 18,495 per month, while the minimum is Php 2,000.

How can I file my SSS retirement claim online?

How to file SSS retirement claim online?
How to file SSS retirement claim online?

Here are the steps in filing for an SSS retirement claim online:

  • Log into My.SSS by visiting the SSS website at www.sss.gov.ph
  • Select Member Account. 
  • On the E-Services page, click Submit Retirement Claim Application. 
  • Put the date of separation for the covered employee. 
  • Verify the accuracy of the address, contact data, employment history, and other personal information. Next, check to see if you qualify for the retirement benefit. 
  • Answer the questions on having dependent children and working as a mineworker.
  • If eligible, the funds will be deposited into your UMID-ATM or bank account listed on the Bank Enrollment Module. 

Members should also ensure the following before filing an SSS retirement claim:

  1. They don’t have any SS numbers that have been canceled
  2. They don’t have more than one SS numbers
  3. They don’t have any dependents
  4. There are no unpaid loan balances under the following:
  • Privatization Fund Loan Program
  • Stock Investment Loan Program
  • Vocational Technology or Educational Loan Program

(Only calamity loans or unpaid SSS salaries, including those taken out through the Salary Loan Early Renewal Program, are permitted.)

Related:

What are the documents needed for SSS retirement?
What are the documents needed for SSS retirement?

SSS Retirement Requirements: Documents

Make sure you have the following requirements available before applying for SSS retirement benefits:

  • Application form for SSS retirement claim
  • IDs, both primary and secondary
  • ATM card, passbook, or cash card enrollment form, in original or photocopy, with name on it.
  • Birth certificate
  • Marriage certificate
  • If the member is under 65, a certificate of separation from their previous employer must be submitted.
  • If necessary, additional supporting documents

Visit your local SSS branch or the SSS website if you need clarifications or have questions about the documents required for SSS retirement benefits. 

Read more: Retirement Law for Employees in the Philippines

SSS Retirement Lump Sum Requirements

The general requirements for claiming retirement SSS lump sum benefits in the Philippines include:

  1. Membership Qualifications:
    • The member must be at least 60 years old, separated from employment, and has paid at least 120 monthly contributions prior to the semester of retirement.
  2. Application for Retirement Benefits:
    • The member must file an application for retirement with the SSS.
  3. UMID (Unified Multi-Purpose ID) or SSS biometrics ID:
    • Members need to present a valid UMID card or SSS biometrics ID.
  4. Bank Enrollment for Payout:
    • The retiree needs to enroll their bank account for the monthly pension. The SSS prefers disbursing benefits through banks.
  5. Retirement Claim Application (SSS Form DDR):
    • The retiree must accomplish and submit the Retirement Claim Application form (SSS Form DDR) to the nearest SSS branch.
  6. If Member is Not Present:
    • If the member cannot personally claim the benefit, an authorized representative may do so. The representative must present an Authorization Letter, a valid ID, and the ID of the retiree.
  7. Proof of Termination of Employment:
    • If the member is already separated from employment, a Certificate of Separation from the last employer or a duly notarized affidavit of cessation of business or professional practice is required.
  8. Proof of Pensioner’s Bank Account:
    • A copy of the passbook or ATM card showing the pensioner’s name, account number, and bank branch is required.

You may also check with the official SSS website or visit an SSS branch to get the most accurate and up-to-date information. Additionally, consulting with an SSS representative directly can provide personalized guidance based on your specific situation.

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Retirement plans are a significant benefit that influences employees’ life both now and in the future. 

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