Mga KaSosyo at KaNegosyo, imagine a giant Lego structure. Each Lego piece is a different type of SSS retirement benefit: the regular SSS, the Worker’s Investment and Savings Program (WISP), and the Worker’s Investment and Savings Program Plus (WISP+). Each piece is unique but crucial to create the overall structure – your secure and fulfilling retirement.

Let’s embark on a journey to understand each of these pieces, their unique features, and their role in creating the retirement lifestyle we desire.

Regular SSS: The Foundation Stone

As the foundational building block, the regular SSS program is mandatory for all Filipino workers. It promises guaranteed returns and tax-free benefits, providing a safety net for your golden years. With a monthly salary credit ranging from 1,000 to 20,000 pesos, it allows for both self-contributions and employer shares.

Whether you choose to receive your benefits as a lump sum or an annuity, the regular SSS program guarantees a steady flow of income during retirement. As the saying goes, “Kahit ano mangyari, may kasiguruhan.”

WISP: A New Layer to Your Retirement Building

Launched in January 2021 under the SSS Law of 2018, the WISP is a compulsory provident fund for members with a monthly salary credit (MSC) greater than PHP 20K. It offers market-based returns, ensuring your contributions grow over time. Like the regular SSS, WISP benefits are tax-free and can be claimed as a lump sum or an annuity.

The WISP is designed for those who have a little more to invest, with a monthly salary credit ranging from >20,000 up to 30,000 (for 2023 and 2024), and up to PHP 35,000 (from 2025 onwards). Employer-shared contributions are applicable for WISP, while self-employed, voluntary, and OFW members shoulder contributions independently.

While the returns from WISP are market-based, your principal is guaranteed, and the fund saw a healthy return of 6.39% in 2021. With automatic enrolment for eligible members, the WISP adds an additional layer to your retirement income structure.

WISP+: The Final Touch to Your Retirement Masterpiece

Now, let’s look at the final Lego piece: the WISP+. This voluntary retirement savings program is like the icing on your retirement cake, adding flexibility and additional growth potential to your retirement income.

Open to all SSS members, regardless of membership type or monthly earnings, WISP+ allows you to contribute a minimum of PHP 500 anytime. However, to be eligible, employed members must have at least one regular SSS contribution for the current month, and they should not have claimed any final benefits, like total disability or retirement.

Unlike regular SSS and WISP, the WISP+ program does not have employer-shared contributions. This makes it an entirely personal investment, making you the architect of this piece of your retirement structure.

The WISP+ Investment Mix: Diversification for Greater Security

The WISP+ program takes a diversified approach to investing your contributions, spreading them across various asset classes for enhanced security and growth potential. Your contributions could be invested in government securities (15% which can be increased to 100%), corporate/multilateral institutions and equities (up to 20%), loans to WISP+ members (up to 25%), and money market and BSP-approved investment instruments (up to 40%). The fund also invests up to 70% in loans to pensioners.

Enrollment in WISP+ is done online, only once, and does not expire. After a 1-year holding period, you can withdraw your total accumulated value anytime, or even make a partial withdrawal once a month, as long as the remaining balance doesn’t fall below PhP500.

Facing Challenges Head-on with WISP+

Life has a way of throwing curveballs, and WISP+ understands this. Should you face a critical illness, involuntary separation from employment, or repatriation (for OFW members), WISP+ allows withdrawal before the one-year holding period. Other conditions determined by SSS could also make you eligible for this provision.

Building Your Secure Retirement

Mga KaSosyo, envision your retirement as that final masterpiece built out of the Lego pieces of regular SSS, WISP, and WISP+. Each program is unique and caters to different needs, but together they form a solid structure to ensure a comfortable retirement.

Remember, it’s never too early to start building your retirement masterpiece. The earlier you start, the more secure and fulfilling your retirement will be. As your financial guro, my advice is maagang maghanda para masiguradong maganda ang kinabukasan. Start building your retirement building blocks today.

Ang pagyaman, napag-aaralan at napagtutulungan!

Gusto mo bang mapag-aralan pa ang tungkol sa retirement? Sumali sa Retirement and Estate Planning Webinar sa December 8 and 15, 2023. 

Details at http://vincerapisura.com/webinars. Mag-register na sa https://bit.ly/rpwebinar-register