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Pension formula: This is how the amount of the pension is calculated
With a gross salary of 3,500 euros per month, do you only receive a small pension after 45 years of work? Find out more about pension calculation in Germany and the sobering results.
Pension formula: This is how the amount of the pension is calculated
After almost 40 years of work, many citizens are looking forward to retirement and hope for an adequate pension. A study by the “Roman Herzog Institute” shows that Germans work on average for around 39.3 years, which is relatively long compared to other European countries. The retirement age is 67 for people from 1964, depending on the date of birth.
The formula for calculating the monthly pension according to the German pension insurance includes earnings points, access factor, current pension value and pension type factor. With an average gross salary of 3,500 euros per month over 45 years, this results in a monthly pension of 1,566.74 euros. Despite a decline in pension levels in recent years, which amounts to 48 percent of average income, pensions remain proportionate to average income.
It should be noted that the amount of the pension depends on various factors, including working hours, average earnings and individual allowances. The pension formula serves as a guide and shows that the pension level has fallen in relation to average income, which influences the pension prospects for future pensioners.