Australia: My Experience With The Stock Market - Part 4

Aside from stonks, I was also researching about ETFs (exchange traded funds). It's like mutual funds but no. Then I came across spaceship voyager  then raiz .  If you want to know more about the two, you can refer to this  article . Below is a summary: 📌Make sure you understand the product and the risks involved before investing.  Source: Update: I opened an account with Raiz and will do a review after a few months 😊 . If you want to get started, maybe you can use my referral link here  to have  $5 for me, $5 for you! Thanks!   

How to Manually Compute Your SSS Pension?

Knowing how much pension you will be getting upon retirement will help you plan whether it is enough or not. If not, then you need to find other retirement investment vehicles.

According to SSS, there are two types of retirement benefits:

1) Lump sum amount - pensioners who were not able to meet the required total 120 monthly contributions or 10 year contribution.

2) Monthly pension - lifetime cash benefit for those who paid at least 120 monthly contributions.

To know how much is your monthly pension, 3 formulas are provided in their website and SSS quotes, "The monthly pension depends on the member’s paid contributions, his credited years of service (CYS), and the number of his dependent minor children that must not exceed five. The monthly pension will be the highest amount resulting from either one of the three pension formulae."

1) Total pension = 300 + (AMSC* x 20%) + (AMSC x 2% x excess of 10 years)
2) Total pension = 40% x AMSC
3) Total pension = P1,200 if CYS is at least 10 years but less than 20 years or P2,400 if CYS is above 20 years or more 

*AMSC - average monthly salary credit or monthly salary credit

Example: If you are an OFW and have been contributing the minimum contribution of P110 for 20 years, your pension will be the highest of the three:
1) 300 + (1000 x 20%) + (1000 x 2% x 10years) = P700
2) 1000 x 40% = P400
3) P2,400 (20 years)

What if you paid the maximum contribution of P1,760 for 20 years;
1) 300 + (16000 x 20%) + (16000 x 2% x 10years) = P6,700
2) 16000 x 40% = P6,400
3) P2,400

For those who have different SSS monthly contributions due to the increase of salary, another way to compute your estimated pension is thru the SSS website. You need to register to be able to do that. (kindly check this blog)

Updated SSS table


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