In the Philippines, the Social Security System (SSS) serves as the primary social insurance institution for workers in the private, professional, and informal sectors. Under Republic Act No. 11199, otherwise known as the Social Security Act of 2018, retirement benefits are designed to provide a financial lifeline to members who can no longer work due to old age.

For members looking to retire at the optional age of 60, specific legal and administrative criteria must be met to qualify for either a monthly pension or a lump-sum payment.

I. General Eligibility Criteria at Age 60

Retirement at age 60 is considered optional under the SSS law (with age 65 being the technical mandatory retirement age for most). To file for benefits at 60, a member must meet the following conditions:

Age Requirement: The member must have reached the exact age of 60 at the time of filing.
Employment Status: The member must be separated from employment or have ceased to be self-employed, a social-land-based Overseas Filipino Worker (OFW), or a non-working spouse.

Note: Active employees cannot claim retirement benefits at 60 if they are still working and contributing, as the benefit is intended to replace lost income from cessation of work.

Contribution Requirement: The nature of the benefit (Pension vs. Lump Sum) depends entirely on the number of monthly contributions posted.

II. Types of Retirement Benefits

The SSS provides two distinct types of benefits based on the member's contribution record at the time of retirement.

1. Monthly Pension

To qualify for a lifetime monthly pension, the member must have paid at least 120 monthly contributions prior to the semester of retirement.

The "120-Month Rule": This is a non-negotiable statutory requirement. These contributions do not need to be consecutive, but they must total 120 months (10 years) of premiums.
Benefit Perks: Pensioners are also entitled to a 13th-month pension every December and PhilHealth hospitalization benefits (if they have completed 120 contributions to PhilHealth as well).

2. Lump-Sum Amount

If a member reaches age 60 and ceases employment but has less than 120 monthly contributions, they are eligible for a lump-sum payment.

Calculation: The lump sum is equal to the total contributions paid by the member and the employer, including interest earned.
Effect: Once a lump sum is granted, the member's record is effectively closed for that retirement claim, though they may still be covered under other contingencies if they resume work.

III. Special Categories: Early Retirement

While age 60 is the standard optional age, certain professions governed by specific laws and SSS circulars allow for earlier retirement:

Underground or Surface Mineworkers: Under R.A. 10757, mineworkers whose tasks are hazardous may retire at age 50 (optional) or 60 (mandatory), provided they have at least 5 years of service.
Racehorse Jockeys: Licensed jockeys may retire at age 55, provided they have been employed as such for at least 5 years.

IV. Documentary Requirements

To formalize the claim at age 60, the SSS typically requires the following documentation:

Retirement Claim Application (SSS Form DDR-1): The primary application form.
Personal Identification: SSS digitized ID (UMID) or two valid government-issued IDs with photo and signature.
Proof of Separation: For employees, a Certificate of Separation from Employment from the last employer is required to prove that the member is no longer working.
Bank Account Details: Enrollment in the Disbursement Account Enrollment Module (DAEM) via the My.SSS portal is mandatory for the electronic transfer of funds.

V. Crucial Statutory Provisions

Under the Social Security Act of 2018, the monthly pension is calculated based on whichever of the following three formulas yields the highest amount:

1. 2. 3. The minimum pension of P1,200 (for members with at least 10 CYS) or P2,400 (for members with at least 20 CYS).

The law ensures that those who have contributed more to the system over a longer period receive a proportionally higher benefit, emphasizing the principle of equity in social insurance.