How Much Will Be My SSS Pension?

 

Question from Emy:

If I pay 770 pesos every month to SSS, how much will be my SSS pension when I
turn 60?
I’m 24 years old, and I have just started paying my contributions.

Answer:

Over the 36 years that will pass before you turn 60 years old, we can expect that there will be increases in SSS contributions and salary credits.

Your 770-peso monthly contribution will surely change over the years.

For this reason, whatever pension amount I come up with will not be accurate.
But I will compute on the assumption that your average monthly salary credit (AMSC) will be 7,000 pesos since you said you will pay 770 pesos every month.
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The salary credit for 770 pesos is 7,000 pesos.

I will use the following formula:

300 pesos
+ 20% of AMSC
+ 2% of AMSC x CYS in excess of 10

300 pesos
+ 20% of 7,000 pesos
+ 2% of 7,000 pesos x (36 years – 10 years)

300 pesos
+ .20 x 7,000 pesos
+ .02 x 7,000 pesos x 26 years

300 pesos
+ 1,400 pesos
+ 140 pesos x 26 years

300 pesos
+ 1,400 pesos
+ 3,640 pesos

= 5,340 pesos

Your monthly SSS pension will be 5,340 pesos

REMINDER:

My computation is only an ESTIMATE.
Surely, your AMSC will not be 7,000 pesos.
It can increase or decrease, depending on your future contributions and
changes in SSS contributions and salary credits.

 

Is it worth paying 770 pesos monthly for 36 years?

770 pesos x 12 months x 36 years
= 332,640 pesos

This means you will contribute a total of 332,640 pesos over 36 years.

Assuming you will live until age 90, you will receive your pension for a period of 30 years.

5,340 pesos x 12 months x 30 years = 1,922,400 pesos

Your total pension for 30 years is 1,922,400 pesos

NOTE:

You can see the other SSS pension formulas here:

How to Compute Your SSS Pension

How to Check Your Estimated SSS Pension Amount Online 

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