Robert Joseph de Claro —SOCIAL SECURITY SYSTEM WEBSITE
MANILA, Philippines – The Social Security System’s (SSS) Pension Booster Program posted lower returns in the first five months of 2026 amid shifting interest rates, but still outperformed short-term government debt benchmarks.
In a statement on Tuesday, SSS said the average return on investment (ROI) of the Pension Booster settled at 6.2 percent from January to May, lower than the 6.83 percent recorded in 2025.
READ: SSS starts early rollout of pension hike amid high inflation
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The state-run pension fund attributed the softer performance to adjustments in interest rates by the Bangko Sentral ng Pilipinas (BSP).
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In February, the central bank cut its policy rate by a quarter point to 4.25 percent to shore up an economy weakened by a major graft scandal.
READ: BSP hikes policy rate anew by 25bps to 4.75%
This rate remained at an off-cycle meeting in March before raising it by a quarter point to 4.5 percent in April, marking the BSP’s first tightening move in more than two years as policymakers sought to contain inflationary pressures triggered by a global oil shock.
Despite lower returns, SSS said the program still beat market benchmarks, outperforming the average 91-day Treasury bill rate of 4.77 percent.
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To boost members’ earnings, SSS waived the one-percent management fee on Pension Booster accounts from 2025 to 2028, allowing contributors to keep all investment gains.
The agency also cited rising member confidence, as contributions climbed 21.8% to P699 million in 2025.
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The Pension Booster, formerly the Voluntary Provident Fund, provides supplemental retirement savings for mid- to high-income SSS members.
It accepts contributions starting at P500, which are pooled and invested in government securities, bonds, equities and money market instruments.
Latest figures from SSS showed that the agency is targeting an annual return of 7.2 percent for the fund.
“The strong performance of the Pension Booster demonstrates disciplined and professionally managed savings. We remain committed to providing members greater financial security during retirement,” SSS President and CEO Robert Joseph de Claro said.
SSS has yet to release its financial results for the first quarter of 2026. In 2025, however, the pension fund’s net income surged by 58.4 percent to P142.97 billion, surpassing its P100-billion target.
READ: SSS posted fatter ’25 profits, reserve funds
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Moreover, its reserve fund also surpassed P1 trillion for the first time, strengthening its ability to meet future benefit obligations. /pai INQ