SSS Peso Fund
The Social Security system has a set up a saving program which is called the SSS Peso Fund that allows its members to save money or otherwise make investments. Anyone interested in making a safe and affordable source of passive income is definitely welcomed.
The contributions made will be invested in securities of the Philippine government. This means that it would be used in debt acquisition in the form of treasury bills and sovereign bonds. It is important to note that any contribution one makes would be cut into three different accounts.
These are the retirement/ total disability account, general-purpose account, and medical account, and 65% will go to the retirement account while the other 35% is for the remaining two accounts.
Since the retirement account is invested in the form of the 5-year Treasury bond, it is sovereign security, which is medium-term. The remaining two accounts are shorter termed in nature, and they are regarded as treasury notes. There is no definite figure as to how one will earn as the figures vary.
However, the average percentage of earnings is mostly 3.085%, and the retirement account has a higher percentage than the other two accounts.
There are many benefits to this program. Which are as follows:
Free of taxes
Free of risk
Warranty about earning
Profitable
Warranted government savings
Easy
Higher earnings as compare to other bank accounts.
There are few demerits of this program. These are:
Managing fee
Penalties
Saving withdrawal is allowed in certain situations
MINIMUM AND MAXIMUM INVERSTMENTS
The minimum amount of money that one can invest in having an account is $1000, while the annual maximum limit is $100,000.
Member is allowed to choose between offering a consecutive contribution of $1000 or also make addition of $1000 every single time you save under the fund.
MATURITY PERIOD FOR WITHDRAWAL
Member can withdraw from the general purpose and medical accounts at any time they wish while the retirement account can be withdrawn when one wants to present their final claim on their membership. It is also released when one is retiring or fully disabled as either a lump sum or a monthly pension.
ELIGIBILITY & QUALIFICATION
This investment program is open to any Filipino citizen regardless of whether or not they work on the Filipino grounds. It is free for the employed and self-employed Filipinos. One can also volunteer and still be eligible to use the SSS Peso Funds.
There are some restrictions; for instance, one has to have made an influx of contributions for six months in the past year. In addition to this, it is only available for people below 54 years. Also, it is for members who have already paid the maximum limit of the allowed contribution for a continuous period.
This fund is restricted to those who have never tabled any claim on their regular membership.
REQUIREMENTS
For registration, some necessary requirements are compulsory.
Has to be employed either overseas or in the Philippines ground.
Has to be a member of the SSS program who has contributed to the program for a significant period.
Has to be below 54 years.
APPLICATION PROCEDURE
There are two major ways in which one can apply for the SSS peso fund. First and foremost, it is by physically visiting any SSS branch and applying.
Another way is by going through the virtual route whereby they submit the enrollment form provided in the SSS portal on the e-services tab.
Although, one would have to visit the SSS branch still anytime check whether it's available for you. Always remember to bring your ID card and SSS number.
The SSS Peso Fund is a way in which Filipinos are encouraged to increase their savings and earn a passive income even when they are retired.
For more information you can visit SSS website: https://www.sss.gov.ph/
Let's start saving for our future. Happy Investing!