Calculate Your SSS Pension Fund (2024)

FAQs

How do I calculate my Social Security pension? ›

Social Security benefits are typically computed using "average indexed monthly earnings." This average summarizes up to 35 years of a worker's indexed earnings. We apply a formula to this average to compute the primary insurance amount (PIA). The PIA is the basis for the benefits that are paid to an individual.

Multipliers are sometimes known by other terms, such as “accrual rate” or “crediting rate” but they mean the same thing. A typical multiplier is 2%. So, if you work 30 years, and your final average salary is $75,000, then your pension would be 30 x 2% x $75,000 = $45,000 a year.

Look for your monthly income bracket in the Range of Compensation column. Go to the rightmost column of the Monthly Salary Credit section, then get your corresponding MSC. Compute your monthly SSS contribution using this formula: MSC x Contribution Rate = Monthly Contribution Amount.

SSS Pension Formula 2:

The second formula calculates your monthly pension using your credited years of service (CYS) and the minimum guaranteed pension. Your monthly pension is ₱1,200 if your CYS is between 10 and 20 years. Your monthly pension is ₱3,400 (₱2,400 + ₱1,000) if your CYS is 20 years or more.

The amount of pension is 50% of the emoluments or average emoluments whichever is beneficial. Minimum pension presently is Rs. 9000 per month. Maximum limit on pension is 50% of the highest pay in the Government of India (presently Rs. 1,25,000) per month. Pension is payable up to and including the date of death.

Social Security payments vary widely from person to person, but the average monthly payout as of September 2023 is just under $1,707, while the maximum payment—for someone whose annual career earnings average $160,200 or more and retires at full retirement age—is $3,627.

You must have worked and paid Social Security taxes in five of the last 10 years. If you also get a pension from a job where you didn't pay Social Security taxes (e.g., a civil service or teacher's pension), your Social Security benefit might be reduced.

I estimate that you'd be offered $470,000 for a $3,000 monthly pension that is about to start at age 65. (I can only estimate because plans vary in how quickly they adopt interest rate updates.) If you are a 65-year-old nonsmoking female, the pension is worth more like $626,000.

If you are in a defined contribution pension scheme, you will get a statement each year from the pension provider telling you how much you have saved into it, and what you might receive if you carry on saving into it.

To calculate the present value of an annuity benefit, you need to use this formula: Present value = Payment x [(1 - 1 / (1 + discount rate) ^ number of years) / discount rate] For example, if you are offered a pension of $1,000 per month for 20 years, starting in 10 years, and the discount rate is 5%, the present value ...

How do I calculate my SSS pension? ›

“Retirement benefit is a cash benefit being granted by SSS to a member who can no longer work due to old age. Members who paid at least 120 monthly contributions will get a lifetime monthly pension while those with less than 120 monthly contributions will receive a one-time lump sum amount,” Villacorta explained.

However, once you become a covered SSS member, you become a member for life. The contributions that you remit become savings for the future that will serve as basis for the granting of social security benefits in times of contingencies. Membership cannot be withdrawn and contributions paid cannot refunded.

An SSS retiree is entitled to monthly pension for as long as he lives. However, granting of monthly pension to an SSS retiree below 65 years old will be suspended if he becomes gainfully re-employed or resumes self-employment, upon which he is again subject to mandatory coverage until his compulsory retirement.