SSS Retirement Benefit Claims and Computation Guide [2023]

How to apply for a SSS retirement benefit?

When you turned 50, you began to consider the next ten years, as well as how you would like to take advantage of the benefits you would receive after you reached retirement age.

Some people decide to pack their bags and travel the world, while others want to spend more time with their families. Enjoying your spare time and resources while trying new experiences and activities is a huge comfort. This kind of life is what you deserve after years of labor. 

However, some people who plan to retire are concerned about how they will fund their lifestyle after they retire. So the best and wisest course of action is always to start saving for retirement. This is when SSS retirement benefits become essential. The program gives a monetary benefit to a Social Security System (SSS) member who can no longer work due to old age.

Here, we will go through all the information you need regarding SSS retirement pension benefits.

How much will you get from SSS when you retire?

Your paid contributions and the number of service years that have been credited determine how much you will get in SSS retirement pension benefits. The greater your contributions and credited 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 with withdraw your pension as a one-time payment in its entirety.

How to compute your SSS retirement pension?

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 work, they will get a cash benefit known as a pension. In order to be eligible for retirement benefits, an SSS member must:

• At least 60 years old, not any longer employed or self-employed, and an OFW housekeeper. (Optional retirement)
• At least 65 years of age or older, whether employed, self-employed, working as an OFW, or working as a housekeeper. (Technical retirement)
• At least 120 total contributions paid before the retirement semester.
• If the member has made less than 120 monthly contributions, they are entitled to a lump sum payment equal to the entire amount of contributions made by them and on their behalf. However, to qualify for a monthly pension, a member may choose to make additional contributions until the 120 months have been completed. 
• A total disability pensioner who is at least 60 years old (or at least 55 years old if an underground mine worker)

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 Manual Pension Calculation

The SSS monthly pension is mostly based on three things:

• contributions made
• number of years that a member has been actively contributing
• 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:

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 can I file my 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 of SSS should also be aware of the following before filing an SSS retirement claim:

1. They don’t have any SS numbers that have been canceled or have more than one.
2. 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.)

3. They don’t have any dependent kids.

Related:

• Accessing Your SSS Online Portal Account
• How to apply for a Salary Loan in SSS?

What are the documents needed for SSS retirement?

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

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