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Pension formula: This is how you calculate your pension correctly
Find out how much pension you can expect with a gross monthly salary of 3,500 euros. Get insights into the pension formula and current pension values. Discover how pension levels have changed over the years.
Pension formula: This is how you calculate your pension correctly
After almost 40 years of work and the associated pension insurance payments, many citizens have high expectations of receiving an appropriate pension. But how realistic are these expectations and how much pension can employees actually expect?
In Germany, the average working life is around 39.3 years, while in Romania, for example, the average working time is only 31.5 years. This shows that in Germany people work for a comparatively long time before they can begin their well-deserved retirement.
The amount of the pension depends on various factors. People born after 1964 can generally retire at the age of 67. The retirement age varies depending on the year of birth. There are also rough guidelines that can be used to estimate the expected pension amount.
The German pension insurance offers a “pension formula” for calculating the monthly pension. This formula takes into account earnings points, access factor, current pension value and pension type factor. The earnings points are calculated annually by comparing earnings with the average earnings of all contributors.
An example shows that a person who has earned 3,500 euros per month for 45 years can expect a monthly pension of only 1,566.74 euros. This shows that the pension level has been declining compared to average income, as it has fallen from 52.9 percent (in 2000) to around 48 percent in recent years.