Why is the SSS Retirement Pension Lump Sum so small? You need to know!

by | Sep 16, 2023 | Retirement Pension | 39 comments

Why is the SSS Retirement Pension Lump Sum so small? You need to know!




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SSS Retirement Pension: Why is it Small? What You Need to Know!

Retirement is a phase in life that everyone looks forward to. It’s the time where you can finally relax and enjoy the fruits of your labor. One way to ensure a comfortable retirement is through the Social Security System (SSS) in the Philippines. However, many retirees often find their SSS retirement pension to be too small. In this article, we will discuss why this is the case and what you need to know.

Firstly, it’s crucial to understand the factors that determine the amount of your SSS retirement pension. The monthly benefit is calculated based on the number of contributions you have made throughout your working years, your average monthly salary credit, and the number of credited years of service. Simply put, the more contributions you have made, the higher your pension.

However, there are several reasons why the SSS retirement pension may still be smaller than expected. One reason is the limitation on the maximum monthly salary credit, which is currently set at Php 20,000. This means that even if you have been earning more than that amount, your contributions will still be based on the maximum ceiling. As a result, your pension may be lower compared to your actual income.

Another factor to consider is the number of credited years of service. To qualify for the retirement pension, you need to have at least 120 monthly contributions and you must be 60 years old or older. If you have contributed less than this requirement, your pension will be prorated. This means that the fewer contributions you have, the smaller your monthly pension will be.

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Additionally, the SSS pension system follows a progressive formula, which means that those with low-income levels receive a higher percentage of replacement income compared to those with higher income levels. This is meant to provide a more balanced distribution of benefits among retirees. However, it may result in smaller pensions for individuals who have earned higher salaries throughout their working years.

It’s important to note that the SSS retirement pension should not be seen as the sole source of income during retirement. It is intended to supplement other retirement plans or savings that you may have. The goal is to create a diversified portfolio that includes your SSS pension, personal savings, or any additional investments you have made.

To ensure a more robust retirement income, it’s advisable to start planning early and explore other retirement savings options. Consider contributing to a private retirement plan, such as an Individual retirement account (IRA) or a company-sponsored pension plan. These additional sources of income can significantly enhance your financial security during retirement.

In conclusion, while the SSS retirement pension may seem small for some, it is a valuable benefit that can contribute to a comfortable retirement. Understanding the factors influencing its size allows you to make informed decisions and plan accordingly. Remember, relying solely on the SSS pension may not be sufficient, so it’s essential to diversify your retirement savings to ensure a financially stable future.

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39 Comments

  1. Teddy Almendrala

    Ang hirap po dyan sa branch office eh hindi nila kung magkano ang naihulog ng asawa ko. Patay na po asawa ko ngayon po ay malinaw para sa akin kung may lump sum.kailangan po ba na puntahan sa main office eh senior kn at hirap sa bumayahe .

  2. Susana Paez

    good pm po tanong kulang bat mabagal at matagal mag verify ang sss office with regards ng sss retirement pension o lumpsum

  3. judy

    Tanong kolang po cno po ba ang pwede magclaim ng lumpsum ng father ko namatay po cya 2017 burial plang po ang nakuha nmin,hinde nman po pwede ang 2nd wife nya mag monthly pension dahil hinde po sya accept as primary beneficiaries?

  4. Mhikz Tv

    Hello po ung sa tita ko po 91 contribution at retiree na din pwede po ba nya ma i lumpsum? Thank you

  5. Dan Allan Sarthou

    Lump sum per monthly annual, Such retirement benefits could no longer work. Due to old age, Features fully wrinkled and premature aging. Saggy skin face?

  6. Ediliza Palma

    Sir, ano po binabasehan start counting 18 months lumpsum Yun effective retirement July 2021 ( my bday)or Yun lumpsum naman na received December 2 021. Sa effective month po simula bilang Ng 18 months or Yun month na received. Thanks for reply. God bless. Qualified po ako sa monthly pension Kasi po umabot ako 209 months contribution.

  7. Evans Habacon

    Nalito ako sabi pag nag lump sum isahang bigay but just now sabi mo after 18 months ay tatanggap sya ng monthly pay out

  8. Brian Enaje

    Pwede po bang elumpsum ang hulog kahit hindi pa 60years old?

  9. Jame Lentigan

    Mam may tanong po ako, nagavail po kc ng tatay ko ng lumpsum na 18months, and approve nmn po. And nagtext smen na on or before sept2 2022 (yesterday) eh mkkuha nmen sa atm n nlgay nmen sa disbursement account.. Upon checking nmen kgb wla po pmpasok sa atm nmen, until now wla po.. Nagcheck po ako sa sss online, and nklgay dun sa status sa bank eh no credit response yet .. Anu po kaya ang possible way nito sir? Maghhntay po b kmi or klngan ng pmnta sa sss?? Slamat sa sgot. Godbless

  10. Carl Yo

    Mali yata Explanation sa Lump Sum Pension.

  11. Myles

    If he reach of 206 month how much is the lumpsum?and how much is the monthly pension?at the age of 45 he stopped remit now july 4 is he's 60th ..

  12. Giovania Miracle

    Ilang months ba after mareceive ang lumpsum na equivalent ng 18months ng total contribution ng retiree ang monthly pension?

  13. june villaruel

    pwedi ba mag loan or lumsup ang life time disability thnx plz…

  14. Marben pol Salar

    Sir maitanung po ako.
    Kapatid ko po Kasi Namatay na.
    Ngayun po Yung anak nya Mai pension na..Mai makukuha paba kami lumpsum..

  15. Elyrose Santos

    Hi good morning po sir … 63 years old na po ang tatay ko at Buhay pa po pwd po ba nya ilump sum ang 3 years na hulog nya 2004 to 2007

  16. Jessie Siarot

    Good day po pwd kna m avail ang lumsum ko 38yrs old plng ako wla nku work posible kya

  17. Nowa5T

    Pag naglump sum wala kang burial pag namatay ka na

  18. Jun lee Oranda

    79 month magkano lunsum makoha at retirement 65 years old na po?

  19. Jun Ereve

    Magrally tau Ibigay UN 1 k dagdag pensyon kwwa UN minimum Ang pensyon

  20. Reynaldo Henson

    halimbawa po sir naka advance ako sa 18 month lumpsum pension may makukuha ba akong 13month ngayong dcember

  21. Nj Avanzado

    My lumpsum pa po ba makukuha ang isang namatay na ng pepension n..slamat po sa sasagot

  22. vanessa ordonio

    Pano po ung mama ko lagpas 120 moths o higit pa pero namatay na si mama ko ano po ba mga benefits

  23. Casiano Hernandez

    Bkit po 2200 lang ang aking pension pero ang hulog sa buwanan eh 330 paano ang nangyari doun sa pension ko nag ttnong lang po

  24. May Cadam

    Klan po makakarecib ng monthly pension after marecib ang 18 months pay.

  25. roaida bernados

    ask lang po ang binan ko 20years ng patay makoha paba yong lumsam

  26. Josh Carl Dual

    If 20 months lang po ang contribution… Makaka avail po ba ng lumpsum???

  27. Violeta s Aladin

    Paano baagonline sa sss kv gusto ko magrenew ng sslary loan retired nako n nagpepension na tapos na kmi sa loan ko kaya magrenew ako ng loan uli pls helpme kc hindi na pwede punta sss ofc eh im osca n pwd pls helpme tnx

  28. armando labrador

    hell po sir good good morning ,good pm po sir ako po ay si armando f. labrador matagal nang members ng sss pero mula po akong nag abroad hindi po ako nakahulog hanggang retired na ako sa idad ko ,66 napo ako ngayon pueding kukunin ko na lang yon sir datey kung hinulog dyan sa sss makukuha kopa ba yon sences maaring 1974 pa yata yon salamat god bless

  29. Romeo Reales

    Na experience ko nalang ang mga pabigat na interest sa mga lending investor at sa banko dahil sinuway nila ang batas subrang taas na interest kaya natalo sila…

  30. Susana Chua

    Paano po malalaman Kung tama ang pension n nakukuha ko?

  31. ajie

    Sir, mali ang paliwanag mo. Ang tukoy mong lump sum ay 18 months advance pension. Ito ay option kung gustong mag advance ng pension ang isang RetirementPensioner.
    Ang Lump sum ay hindi pension Isang bigayan po ito sa mga hindi nakahulog ng 120 months para sa retirement.

  32. romjulzab Monsanto

    good evening.. pwede na po ba makapagprocess para sa pension kung nakumpleto na ang 120months na required contribution , ngayong month lang po ng february nakumpleto ang hulog at self employed po…

    magoopen na po sana kami ng bank account para sa mama ko. pero kailangan pa daw po ng LETTER OF INTODUCTION sabi po ng bangko.

    nagpunta po kami sa SSS para kumuha ng LOI pero hindi po kami bnigyan dahil hindi pa daw po kami pwede mgprocess ng pension,.

    *last posted contribution is july 2021.

    *qualified for pension january 2022.

    yan po ang binigay na info sa amin.
    hindi po kami nabigyan ng LOI, at sinabi rin na by december 2021 pa daw po kmi posible na makakuha ng LOI at mkapagopen ng account sa bangko.

    halos 10months pa po ang hihintayin namin bago po kami mgproseso para sa pension??

  33. Letty Balagtas

    Maliit nga mga pe sinsion nmin eh pera dn namin n kinakaltas tuwing katapusan ng buwan

  34. Jesy Durango

    NO VOTE FOR MORENO SYAY ISANG KOMUNISTA SALOT KA SA LIPUNAN AYAW KONG MAGING KOMUNISTA ANG PILIPINAS

  35. Jenie Omaweng

    My nakalagay nmn pong service un available please try again d ka po mkapg fill up matagal n pong ganito

  36. Lily Racoma

    Hello po sir ask ko lng po kng ano ang pede kng gawin, ako po ay na stroke last April 24 2020 ng file po ako ng dsability claim ko last Sept. 2020 pero hangang ngaun po wla pa pong kasagutan dun sa fenile ko dna man po ako mkapunta at bawal po dnman po ako marunong mg onlyn ,salamat po

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