Pension formula: How much will your pension be if your gross salary is 5,500 euros?

Pension formula: How much will your pension be if your gross salary is 5,500 euros?

Anyone who has earned an annual gross income of 66,000 euros or 5,500 euros per month for 50 years can expect a monthly pension of around 2,726 euros when they retire. This calculation is based on the pension formula, which takes into account various factors such as the earnings points, the access factor, the current pension value and the pension type factor. The individual salary is compared to the average salary of all employees.

For people who earn above average with a gross salary of 5,500 euros per month, there is an attractive pension level. The salary points, which result from the ratio of your own salary to the average income, multiplied by the years of work, ultimately determine the pension amount. In this scenario, 50 years of constant income lead to a pension entitlement of 2,726 euros per month.

The pension formula takes into account various pension type factors, which can lead to deductions or additions depending on the type of pension. For example, people with a classic old-age pension receive the full pension type factor of 1.0, while other types of pensions such as orphans' pensions have reduced factors.

It is important to note that individual circumstances and changes in the law can affect the pension amount. The FDP, for example, is planning to abolish pensions at the age of 63 in order to create incentives for longer working hours. From July 2024, pensioners can also expect a pension increase, which could improve their financial situation.