Retirement—just the thought of it brings a mix of excitement and worry, right? You dream of spending your days exploring or traveling but then reality hits, and you start to wonder, “Will my pension be enough to fund all those dreams?” What if I told you there’s a way to supercharge that pension and add a little extra cushion for your golden years? Introducing MySSS Pension Booster—a nifty tool that could help you stretch your retirement funds a bit further. Intrigued? Stick with me. I’ll walk you through what this booster is all about and how to apply MySSS Pension Booster right here in the Philippines.
We’ll share the following in this article:
- Is SSS Pension Booster Voluntary or Mandatory?
- SSS Pension Booster Interest Rate
- Is SSS Pension Booster Tax-Free?
- SSS Pension Booster vs WISP Plus (with Requirements)
- SSS Pension Booster vs Pagibig MP2
- Withdrawal options
- Steps when applying
- Is MySSS Pension Booster worth it?
Overview: How to Apply MySSS Pension Booster
MySSS Pension Booster, formerly known as Worker’s Investment and Savings Program (WISP), has been making waves lately due to name changing or rebranding. But here’s the thing—these changes weren’t just for fun.
The renaming to MySSS Pension Booster in the Philippines is a nod to what it’s really all about—boosting your retirement funds and savings. SSS President & CEO Mr. Macasaet explained that this new name displays the program’s number one goal. It’s not just a name change; it’s a signal of what this program aims to do for your future.
And the timing? Spot on. This shift was part of a broader range of reforms in the Philippines introduced under R.A. No. 11199 or the Social Security Act of 2018. These reforms are designed to make sure that when you hang up your work boots, you’ve got a solid financial cushion to fall back on. So, whether you’ve been calling it WISP, Provident Fund, or now MySSS Pension Booster, the message is clear: it’s all about securing your golden years.
In fact, I’ve got a sample payslip here to show you exactly where this program fits into your finances. It’s a small line item that could make a big difference when you retire. See below sample pension booster labelled as provident fund.
Is SSS Pension Booster Voluntary or Mandatory?
With the former booster name, it has mandatory and voluntary schemes. Well, the new MySSS Pension Booster works the same way. The Mandatory Pension Booster is previously known as WISP, while the Voluntary Pension Booster was called WISP Plus. The names might have changed, but the concept is pretty much the same.
So, here’s how it works: If you’re already contributing more than P20,000 as your Monthly Salary Credit (MSC) to your regular SSS contributions, you’re automatically enrolled in the Mandatory Pension Booster. It’s like a built-in savings plan that kicks in once you hit that P20,000 mark. But there’s a catch—your monthly contributions are split between you and your employer in the Philippines.
Now, if you’re not hitting that P20,000 MSC, don’t worry—you can still boost your retirement savings with the Voluntary Pension Booster. This option is open to all SSS members, regardless of how much they’re contributing. It’s especially great for those looking to give their retirement savings a little extra push. So, even if you’re contributing less than the required MSC, SSS highly recommends jumping on board with this voluntary program to maximize your retirement benefits in the Philippines.
Personally speaking, when I first hit the MSC for my SSS contributions, I was pleasantly surprised to find out that I was automatically enrolled in the mandatory pension booster. It felt like a small victory! Knowing that I had an additional safety net for retirement, on top of what I’d already been setting aside with my Modified Pag-IBIG 2 (MP2) contributions, gave me peace of mind. It’s always reassuring to see your financial planning efforts pay off, especially when it comes to securing your future. And honestly, who wouldn’t appreciate that extra layer of security, right?
SSS Pension Booster Interest Rate
Last year, 2023, the voluntary retirement savings fund didn’t just do well; it raked in a whopping ₱386 million! That’s not just pocket change—it’s a significant chunk of money that shows how effective this fund can be. And the best part? The return on investment was an impressive 6.97%. That means if you had money in that fund, you were earning almost 7% on top of what you put in. Pretty sweet deal, right?
This year, the SSS isn’t just resting on its laurels. They’re aiming even higher, with hopes for a 7.2% interest rate. Imagine getting more than 7% on your savings—it’s like your money is working overtime for you! So, if you’re thinking about where to put your hard-earned cash, this fund might just be the ticket to boosting your retirement savings even further.
Is SSS Pension Booster Tax-Free?
One of the good features of mySSS pension booster is its tax-free benefit. Yes, you read it right, this revamped pension booster of SSS is free from tax. It’s good to consider tax-free options when boosting or choosing retirement savings and investments.
SSS Pension Booster vs WISP Plus (with Requirements)
Now, which is better – Mandatory SSS Pension Booster (WISP before) or Voluntary SSS Pension Booster (previously WISP Plus)? Well, here are some of its features and requirements before we dive on how to apply mysss pension booster in the Philippines.
For Both SSS Pension Booster
- First and foremost, you must be contributing in SSS to identify you as a member of SSS.
- Overall investment returns and contributions made for both Pension Booster are tax-free. This means that every peso you contribute goes directly toward boosting your future pension, with no deductions.
- With just a few clicks on your MySSS online account, you can easily access all your records whenever you need to.
- Without having filed a final benefit claim for both booster schemes in the Philippines.
Mandatory SSS Pension Booster
- This program is designed for employed members who contribute to the regular SSS program and have a Monthly Salary Credit (MSC) over ₱20,000.00 as shared above.
- Any contributions that exceed the ₱20,000.00 MSC are automatically directed into the member’s Mandatory MySSS Pension Booster account.
- The monthly contribution is shared between the employer and the employee.
Related Post: How To Pay SSS Employer Contribution Online
Voluntary SSS Pension Booster
- This booster is applicable to all SSS members regardless of their MSC, so whether you’re self-employed or voluntary, you can enroll this kind of pension booster.
- With this scheme, members can start to contribute as low as P500 pesos only.
- It has flexible payment terms depending on a member’s capacity to pay and it should be done together with the regular contributions as PRN generated.
SSS Pension Booster vs Pagibig MP2
So, you’ve got some extra cash and you’re looking for a smart way to make it grow, am I right? And now you’re probably stuck choosing between the SSS Pension Booster and Pag-IBIG MP2. Let’s break it down as tackled below for you to figure out which one works best.
SSS Pension Booster
- You contribute more to your SSS while you’re still working. The more you put in, the higher your pension will be when you retire.
- This is a long-term game, as you won’t see the results until you hit retirement age.
- Your returns come in the form of a bigger monthly pension when you retire. The actual amount depends on how much extra you contribute now.
- While boosting your contributions can give you a bigger pension, the growth is still capped. SSS isn’t designed as an investment vehicle, so it’s not going to grow at the same rate as other investments.
Pag-IBIG MP2
- You make a minimum contribution of Php 500 per month (or more if you’re feeling generous), and Pag-IBIG invests that money for you.
- Your savings lock in for five years, but after that, you can withdraw your money with dividends or roll it over for another cycle.
- You’ll get an annual dividend, and the rate fluctuates. In recent years, it’s been around 6-7%, which is pretty competitive compared to other investments.
- This isn’t going to give you monthly payouts for life like the SSS Pension, so it’s more of a medium-term investment rather than a retirement plan.
Honestly, it’s not about which one is better—it’s about what you need. If your focus is on boosting your retirement pension, go for the SSS Pension Booster. If you’re after higher returns in a shorter period (and don’t mind a little risk), then Pag-IBIG MP2 might be your new best friend. At the end of the day, your financial decision today must align with your financial goals.
- You might like: How to Invest in Pag-IBIG MP2 Program (Earn Passive Income)
SSS Pension Booster Withdrawal Options
Aside from the features discussed earlier, I’d like to emphasize these withdrawal options under voluntary pension booster in the Philippines. Let’s go!
- Life can throw some curveballs, and if you find yourself in a tough spot—like dealing with a critical illness, suddenly losing your job, or needing to return home if you’re an OFW—you can dip into your savings as early as the first year.
- Now, if you’ve been with the program for 2 to 4 years, you’ve got the flexibility to choose between a partial withdrawal or going all in with a full withdrawal. But, a little heads-up—patience pays off! The longer you stay in the game, the bigger the reward in your pocket. So, if you can hold out a bit longer, you might find yourself with a more substantial sum. But hey, it’s all about what works best for you and your current needs.
- And here’s the best part! Once you hit that golden 5-year mark, your savings are all yours to withdraw however you like—no restrictions, no conditions, just pure freedom!
How to Apply MySSS Pension Booster Philippines?
Always remember that once your MSC in SSS contributions crosses the threshold, you’re automatically enrolled in mandatory scheme. Easy, right? You can confirm this by logging in or checking your member account. To make it easy for you in finding, here’s a sample image under the mandatory scheme.
As promised too, let’s discuss how to apply mySSS pension booster under voluntary scheme in the Philippines.
- First, log in to your member online account.
- Once you’re in, head over to the ‘Services’ tab. It’s usually easy to spot at the top of your screen.
- Now, a dropdown menu will appear as illustrated below. From this list, look for and click on ‘Enroll to Voluntary Pension Booster’.
- So, when you are in the voluntary page, view Terms and Conditions based on sample below.
- Lastly, click ‘I Accept’ when you’re done reading and understanding its terms.
Is MySSS Pension Booster worth it?
And there you have it—a complete guide on how to apply MySSS Pension Booster in the Philippines! It’s easier than you might have thought, right? Boosting your SSS pension isn’t just about adding a few extra pesos to your retirement fund; it’s about giving yourself the freedom to enjoy your golden years without financial stress. Just imagine the peace of mind that comes with knowing you’ve taken these simple steps today to have a more comfortable and stress-free future in the Philippines. And hey, if you’re feeling a bit overwhelmed or just need a little guidance, don’t hesitate to visit the SSS website or reach out to their customer service. They’re there to help you every step of the way.
Indeed, your future self is going to thank you big time for making this decision. So, why not get started today? Here’s to a secure and happy future!