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This paper aims to study the sustainability of the Philippine Social Security System (SSS) by looking at the factors which affect it. The sustainability of the SSS is satisfied when the fund balance is positive in the long run where FUND BALANCE = CONTRIBUTIONS +EARNINGS -BENEFITS- OPERATING EXPENSES. Factors affecting the fund balance are demography (i.e. ageing population and growth of membership), economic growth and its impact on employment and returns to investment, as well as members' income. This study shall focus on the demographic changes and investment management for the last 15 years and sustainability as projected for the next 10 years.

The paper aims to ascertain whether there is a need to widen the reforms of the Social Security System. It analyzes the system currently employed by the Philippines and the problems that affect its sustainability. More specifically, it intends to check if the reforms made to address the problems are sufficient enough to lengthen its sustainability. The evaluation of nonsustainability is based on the sufficiency of funds to pay out the benefits of the retirees. The paper presents a qualitative analysis of the indicators used to assess the system which includes a review of demographic changes, social security membership, benefits and contributions, investment of residual funds, and the schemes employed in the fulfillment of its obligations. Nevertheless, the analysis shows that the system is at an early stage of an aging population which would have subsequent effects on the sustainability of the Social Security System in the coming years. Also. the current reforms do not address the root of the problem and if they had, the only solutions being employed are not enough to keep the system last longer. With these arguments, the paper asserts that there is a need to widen the reforms in the Social Security System of the Philippines. It is recommended that both short-run and long-run reforms be implemented. However, there is a need to focus on restructuring for the long-run sustainability of the system. These reforms must deal with the impending threat that the aging population poses, since it was found out that current reforms are still dependent on the contributing sector that is expected to decrease in the long-run. The system needs to be reevaluated and the possibility of adopting the defined contribution scheme or a mixture of the defined contribution funding and pay-as-you-go defined benefit scheme considered.

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