If you are still in your 20s, the concept of saving for your retirement is still very unusual. You might think that you are still young and have plenty of time.
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| "man-sitting-on-wooden-bench-wearing-black-leather-jacket" by Huy Phan is licensed under CC0 |
But when you are busy with everything happening in your life, the years do come and go too fast. And before you knew it, you are already a pensioner.
You might be thinking that the social security pension plan provided by SSS will be your safety net when you retire.
Will it be enough? That is the million-dollar question.
According to the Philippine News Agency, the average SSS pension is Php5,123, while the average GSIS pension is Php18,525.
Aside from this meager pension, there is also inflation. This year is at 3%. If you want to know your pension's future monetary value, use this inflation calculator.
Now, picture yourself having a Php5,123 pension every month in the year 2060. You don't need to crunch the numbers to get to the answer that it is not enough.
Use the calculator below to have a rough estimate of your monthly pension in the future.
SSS Pension Calculator
Instruction: Do not add a comma when inputting values. For example, you need to enter 1700 instead of 1,700 to calculate the values correctly.
| Mandatory Retirement Age | |
| Retirement Year | |
| Total Working Years | |
| Monthly Salary Credit |
| Your Monthly Contribution | ||
| First Formula | Second Formula | Third Formula |
| Your Monthly Pension When You Retire | ||
Closing Thoughts
The calculator will only give you an estimate. This is by no means the exact amount you will be receiving. SSS also has a pension calculator. Use this to calculate a much closer value to your actual pension amount.
Though both will give the same results that it is not enough.
What you should do today
Do you have any investments that can help you in your old age? Share your perspective in the comments below.
Want to know how your pension is computed?
Read Next: The Social Security Pension Plan - Is it enough to cover your retirement?
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