It is always a good idea to invest for the future, even if you only have just a little bit to put in each month. After all, those small deposits do add up to big amounts over time.
If you are looking to invest your hard-earned money for your retirement, then you may want to take a look at the SSS Personal Equity and Savings Option Fund, also known as SSS PESO Fund.
What is SSS PESO Fund?
The SSS PESO Fund is a voluntary provident fund open to all SSS members who are below 55 years of age and have paid contributions as regular SSS members for at least 6 consecutive months within a 12-month period immediately prior to the month of enrollment and have not filed any final claims.
If you are either self-employed, a voluntary member, or an overseas Filipino worker (OFW), you should be paying the maximum amount of under the regular SSS program.
Why Invest in PESO Fund?
What makes the SSS PESO Fund good for building up your retirement fund is the guaranteed tax-free earnings and benefits through sovereign investments, which means low risk investment for your retirement fund.
If you are an SSS member who is interested in the PESO Fund, then you may enroll right now over-the-counter at any SSS branch. Meanwhile, online enrollment via My.SSS is still being worked on as of this writing.
How to Invest in SSS PESO Fund?
You’re a PESO member as soon as you make your first contribution to the fund, and you can do so anytime you have excess funds.
Withdrawals are not allowed from the Retirement and Total Disability account; they’re only allowed from Medical and General Purpose accounts.
Also, withdrawing within the 5-year retention period has corresponding penalty and service fees. This is a great way to make sure your money is saved right away and goes to a good place.
Self-employed, voluntary members and OFWs should have regular SSS contributions based on maximum Monthly Salary Credit (MSC) on the month of payment before contributing to the PESO fund.
Each member is allowed to contribute a maximum of P100,000 per annum and a minimum of P1,000 per contribution.
Types of PESO Fund
Speaking of accounts, there are three types of accounts in the SSS PESO Fund, namely the Retirement and Total Disability account, Medical account, and General Purpose account.
The Retirement and Total Disability account is allocated 65% with guaranteed earnings based on 5-year T-Bond rates, while the Medical account is allocated 25% with guaranteed earnings based on 364-day T-Bond rates, and the General Purpose has 10% and also with guaranteed earnings based on 364-day T-Bond rates.
General Purpose means you can use it for purposes of education, housing, livelihood, and unemployment.
How to Claim SSS Peso Fund Benefits?
Members may receive benefits from the SSS PESO Fund upon filing a retirement, total disability, or death claim under the regular SSS program.
These retirement or total disability benefits can be received in either a monthly pension, lump sum, or a combination of both. Meanwhile, death benefits are to be paid in lump sum to the member’s beneficiaries.
This means the retirement and total disability benefits are well within your control as far as getting them is concerned.
Is SSS PESO Fund a Good Investment?
The growth of the fund for each member over time does seem pretty straightforward.
If you contribute P100,000 every year from age 40, you should expect to have contributed P2 million by age 60. Assuming that the growth rates are at 3.75%, 1.85%, and 1.85% per annum, give or take, you should earn around P500,000 in 20 years, which gives you around P2.5 million upon your retirement.
That’s actually pretty good for 20 years and you should be able to live comfortably through your golden years with those additional funds.
The SSS PESO Fund is a good option for those who are looking to find a straightforward way to invest their money for their retirement without all the risk and sketchiness associated with investments.
If you are already an SSS member, then this should be an easy enough choice for you. If this is your first time looking into investment funds like this, then you should think about it well as investing in your future is indeed the responsible thing to do.
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