Retirement is a major life milestone that many individuals eagerly anticipate as they near the end of their professional careers. To support financial stability in retirement, the Social Security System (SSS) has introduced a savings program known as the MySSS Pension Booster. This initiative is a reliable, tax-exempt, and budget-friendly savings option designed to help members effectively plan for their golden years. The program consists of two distinct components: the Mandatory and Voluntary MySSS Pension Booster schemes.
Mandatory MySSS Pension Booster and Benefit
The Mandatory MySSS Pension Booster, previously referred to as the Workers’ Investment and Savings Program (WISP), caters to employees already making regular SSS contributions. This scheme is specifically for members whose Monthly Salary Credit (MSC) exceeds ₱20,000 and who have not yet applied for any final benefit claims. For these individuals, contributions above the ₱20,000 MSC are automatically allocated to their Mandatory MySSS Pension Booster account. Both the employer and the employee contribute to this fund, thus ensuring a collaborative effort to safeguard the members’ financial security in the future.
The primary goal of this program is to supplement retirement savings for higher-earning individuals, providing an extra layer of financial support beyond standard SSS benefits. The shared contribution between the employer and employee ensures that both parties are actively involved in preparing for a more comfortable and secure retirement.
Voluntary MySSS Pension Booster
The Voluntary MySSS Pension Booster is an upgraded version of the previous WISP Plus and is available to all SSS members, regardless of their Monthly Salary Credit. Any member who has made at least one posted contribution and has not yet applied for a final benefit claim and those who are registering for a new SSS number can join this scheme.
While this plan is open to everyone, it is mainly geared towards mid to high-income earners who are capable of making additional savings contributions. This includes self-employed individuals, maritime professionals, Overseas Filipino Workers (OFWs), and high-level corporate executives. By making extra contributions, these members can benefit from increased returns and, ultimately, a higher pension income at retirement.
Key Features of the MySSS Pension Booster
The MySSS Pension Booster offers some attractive features that make it a compelling option for those planning their retirement:
Affordable Contributions
The Voluntary MySSS Pension Booster allows members to contribute as little as ₱500 per payment, with no upper limit, depending on the payment method used through SSS partner agents. This flexibility ensures that members can contribute according to their financial capacity, making it accessible for many individuals.
Competitive Return on Investment (ROI)
In 2023, the voluntary savings fund accumulated a total of ₱386 million, boasting an ROI of 6.97%. The SSS is optimistic about improving this rate to 7.2% in the coming year, offering members a competitive return on their investments compared to traditional savings accounts or other low-risk investments.
Tax-Free Earnings
One of the significant advantages of the Mys Pension Booster, whether Mandatory or Voluntary, is that all contributions and accrued earnings are exempt from taxes. This means that members can grow their retirement savings without worrying about tax deductions, maximizing the value of their investments.
Convenient Contribution Process
Members can conveniently make contributions using a Payment Reference Number (PRN) through the SSS website, the SSS Mobile App, or the SSS partner platforms. Payments can also be made over the counter at SSS branches or partner offices, both locally and abroad, for those who prefer in-person transactions. This ensures that contributions can be made effortlessly, regardless of location.
Flexible Payment Terms
The MySSS Pension Booster offers flexibility in payment terms. Contributions can be made anytime, depending on the member’s financial ability. This flexibility allows members to adjust their savings plan according to their income and financial goals.
Real-Time Monitoring
Members can monitor their contributions in real-time via their My.SSS account. Shortly, investment earnings will also be available for viewing online, providing full transparency and control over the savings journey.
Withdrawal and Payout Options
Members of the MySSS Pension Booster can receive their accumulated contributions, including both the principal and investment earnings, completely tax-free. There are several options for how members can access these funds:
- Monthly Pension: Members can receive their accumulated savings as an additional monthly pension, supplementing their regular SSS pension benefits.
- Lump Sum Payment: Members may also withdraw their savings as a lump sum.
- Combination: Alternatively, a combination of monthly pension and lump sum can be arranged, depending on the member’s preference and financial needs.
Additional Benefits of the MySSS Pension Booster
Early Withdrawal Option
In cases of severe financial hardship, such as critical illness, involuntary job loss, or repatriation for OFWs, members are eligible to withdraw funds after the first year of enrollment, subject to approval by the SSS. This early withdrawal feature provides members with a financial safety net during unexpected challenges.
Partial Withdrawal
Members enrolled for two to four years may opt for a partial or full withdrawal of their savings. However, the interest earned may be reduced, depending on the length of time the funds were held.
Full Withdrawal After Five Years
Members who have been enrolled in the program for at least five years can withdraw their entire savings, or a portion thereof, without any reduction in value. This feature provides significant flexibility for those needing access to their funds while still allowing for long-term growth.
How to Enroll in the MySSS Pension Booster
For employees earning above ₱20,000, enrollment in the Mandatory MySSS Pension Booster is automatic, with contributions included in their employer’s monthly SSS remittance. Other members, including the self-employed, voluntary contributors, and OFWs, can enroll in the Voluntary MySSS Pension Booster via their My.SSS accounts. Log in, select the “Enroll to MySSS Pension Booster (Voluntary)” option under the Services tab, and agree to the terms and conditions to begin securing a financially stable retirement.
Secure Your Future Today
The MySSS Pension Booster is a comprehensive savings plan designed to ensure all members’ comfortable and secure retirement. By taking advantage of this program, members can better prepare for their future, providing peace of mind and financial stability for themselves and their loved ones.
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