When is the Best Time to Claim Your SSS Pension? (Latest: 2023)

Deciding when to claim your Social Security System (SSS) pension can be a significant financial decision, as it determines the amount of monthly benefit you will receive and can impact your overall financial well-being.

It is important to carefully consider the eligibility requirements, factors that may influence your decision, and the pros and cons of claiming your pension early or later.

Eligibility for SSS Pension

To be eligible for the SSS pension, you must be an SSS member and must have paid at least 120 monthly contributions prior to the semester of retirement.

This means that you must have contributed to the SSS for at least 10 years in order to be eligible for the pension.

In addition to meeting the contribution requirements, you must also be at least 60 years old for retirement or permanently disabled for disability pension.

Factors to Consider When Deciding When to Claim the SSS Pension

There are several factors that you should consider when deciding when to claim your SSS pension. These include:

1. Age and Health

Your age and health may influence your decision on when to claim the SSS pension.

For example, if you are in good health and expect to live a long time, you may choose to delay claiming your pension until you are older in order to receive a higher monthly benefit.

The amount is based on the average of your monthly salary credit (MSC) for the highest 60-month period, and the longer you delay claiming your pension, the higher your MSC is likely to be.

Therefore, if you expect to live a long time, you may benefit from delaying your pension in order to receive a higher monthly benefit.

On the other hand, if you are in poor health, you may choose to claim your pension sooner in order to have the financial security of a regular income.

It is important to consider the potential impact of health on your ability to work and earn an income when deciding when to claim the SSS pension.

2. Other Sources of Income

Your other sources of income, such as a retirement savings plan or a part-time job, may also influence your decision on when to claim your SSS pension.

If you have other sources of income, you may choose to delay claiming your SSS pension in order to receive a higher monthly benefit.

This is because the amount is based on the average of your MSC for the highest 60-month period, and any income earned while working can increase this amount.

However, it is important to consider the sustainability and long-term viability of these other sources of income when deciding whether to delay claiming the SSS pension.

3. Personal Circumstances

Your personal circumstances, such as your living expenses and financial obligations, may also influence your decision on when to claim your SSS pension.

For example, if you have high living expenses or financial obligations, you may choose to claim your pension sooner in order to have a regular source of income to meet those expenses.

It is important to consider your personal financial situation when deciding when to claim the SSS pension.

Pros and Cons of Claiming the SSS Pension Early

1. Advantages of Claiming the SSS pension Early

A. Regular Source of Income to Meet Financial Obligations

Claiming the SSS pension early can provide you with a regular source of income to meet your financial obligations, such as paying bills and living expenses.

This can provide financial stability and security, particularly for those who are no longer able to work due to disability or age.

B. Financial Security in Case of Unexpected Events

Claiming the SSS pension early can also provide financial security in case of unexpected events, such as illness or job loss.

It can be reassuring to have a regular source of income in these situations, as it can help to alleviate financial stress and provide a sense of financial stability.

C. Earlier Retirement and Enjoyment of Retirement Years

Claiming the SSS pension early can also allow you to retire earlier and enjoy your retirement years.

This can be particularly appealing for those who are ready to retire and want to start enjoying the benefits of retirement sooner.

2. Disadvantages of Claiming the SSS pension Early

A. Lower Monthly Benefit

One potential drawback of claiming the SSS pension early is that you may receive a lower monthly benefit.

This is because the amount is based on the average of your MSC for the highest 60-month period, and the longer you delay claiming your pension, the higher your MSC is likely to be.

Therefore, if you claim your pension early, you may receive a lower monthly benefit compared to someone who claims your pension later.

B. Possibility of Running Out of Money Later in Life

Another potential drawback of claiming the SSS pension early is the possibility of running out of money later in life if you live a long time.

This is because the SSS pension is meant to be a long-term source of income, and if you claim your pension early, you may not have enough income to last you throughout your retirement.

It is important to consider the potential impact of claiming the SSS pension early on in your long-term financial stability.

Pros and Cons of Claiming the SSS Pension Later

1. Advantages of Claiming the SSS pension Later:

A. Higher Monthly Benefit

One potential advantage of claiming the SSS pension later is that you may receive a higher monthly benefit.

This is because the amount is based on the average of your MSC for the highest 60-month period, and the longer you delay claiming your pension, the higher your MSC is likely to be.

Therefore, if you claim your pension later, you may receive a higher monthly benefit compared to someone who claims their pension early.

Check this Article SSS Monthly Pension.

B. Larger Overall Lifetime Benefit if You Live a Long Time

Another potential advantage of claiming the SSS pension later is that you may have a larger overall lifetime benefit if you live a long time.

This is because it is meant to be a long-term source of income, and if you claim your pension later, you may receive a higher monthly benefit for a longer period of time.

This can result in a larger overall lifetime benefit compared to someone who claims their pension early.

2. Disadvantages of Claiming the SSS pension Later:

A. Having to Work Longer and Potentially Postponing Retirement

One potential drawback of claiming the SSS pension later is that you may have to work longer and potentially postpone your retirement.

This can be challenging for those who are ready to retire and want to start enjoying the benefits of retirement sooner.

B. Risking a Decline in Health that May Prevent You from Being Able to Work or Enjoy Your Retirement Years

Another potential drawback of claiming the SSS pension later is the risk of a decline in health that may prevent you from being able to work or enjoy your retirement years.

It is important to consider the potential impact of health on your ability to work and earn an income when deciding when to claim the SSS pension.

You can Calculate your SSS Pension with our SSS Pension Calculator!

Final Verdict

Deciding when to claim your Social Security System (SSS) pension is a significant financial decision that requires careful consideration of your age, health, other sources of income, and personal circumstances.

There are pros and cons to claiming the SSS pension early or later, and it is important to weigh these in order to make the decision that is best for your individual situation.

Remember to also consider the eligibility requirements for the SSS pension, as you must be an SSS member and have paid at least 120 monthly contributions prior to the semester of retirement in order to be eligible.

In addition, you must be at least 60 years old for retirement or permanently disabled for a disability pension. It may be helpful to consult with a financial advisor or professional to help you make this decision.

By carefully considering these factors and seeking guidance as needed, you can ensure that you make an informed decision on when to claim your SSS pension and secure financial stability during your retirement years.