Question from Emy:
If I pay 770 pesos every month to SSS, how much will be my SSS pension when I
I’m 24 years old, and I have just started paying my contributions.
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.
The salary credit for 770 pesos is 7,000 pesos.
I will use the following formula:
+ 20% of AMSC
+ 2% of AMSC x CYS in excess of 10
+ 20% of 7,000 pesos
+ 2% of 7,000 pesos x (36 years – 10 years)
+ .20 x 7,000 pesos
+ .02 x 7,000 pesos x 26 years
+ 1,400 pesos
+ 140 pesos x 26 years
+ 1,400 pesos
+ 3,640 pesos
= 5,340 pesos
Your monthly SSS pension will be 5,340 pesos
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
You can see the other SSS pension formulas here: