Who the 27. Once a year, a man who has reached the age of 65 and is insured under the statutory pension scheme receives his pension Pension notice sent to. In the post from German pension insurance he or she can then read how high his or her monthly pension could be in the future.
But if you want to plan your retirement financially, you don't have to wait for the DRV. With a simple calculation, it is possible to determine relatively accurately how much the monthly pension will be. Whereby in the so-called Pension formula, No extraordinary investments in the pension, such as compensation, bonuses or even Christmas bonuses are taken into account.
To understand the pension formula, you first need to know how the monthly Gross pension is calculated. There are four factors that are crucial to this:
Calculate pension step one: This is how the earning points work
The Entgeltpunkte calculated by the ratio between one's annual income and the average annual income of all insured persons. According to the DRV, this is currently 40.551 euros. If you earn the same amount as the average, you will receive exactly one income point for the corresponding year. If the salary is more or less, the difference is added to the earning points on a percentage basis. To find out, the insured person must divide his gross annual income by the average gross annual income of all insured persons.
Please note: Because of the Defined contribution limit there is a maximum salary that can be specified. The earnings above this maximum are no longer included in the calculation of the earning points. The minimum contribution limit is adjusted annually and for 2021 will be 85.200 (West), 80.400 (East)annual income.
To do this Mothers or fathers per child born after 1992, up to three years credited to the pension. For children born before 1992, a maximum of two years and six months. The DRV calculates these years approximately as if the insured person had earned the average gross income during this time. Per year of so-called Child-raising period there is therefore approximately one earning point. Those who continue to work during the child-raising period will be credited the earning points in addition to the "normal" points. But be careful: The child-raising periods must be applied for at the DRV itself and only one parent can benefit from them at a time.
- In 2021, a salaried baker has 30.000 euros earned.
- This results in divided by 40.551 around 0.74 earning points, which will be added to your pension account for this year.
- The baker also has two children, for whose child-raising years she is credited with a total of five earning points.
- In total, the baker has already been working for 41 years and has accumulated an average of 0.7 earning points per year before 2021.
- In total, the baker has 34.44 earning points (41×0.7+ 0.74 + 5).
Calculating a pension Step two: What is the access factor?
The access factor depends on the point in time at which retirement takes place. If you retire when you reach the statutory retirement age, you will have an access factor of 1. The standard retirement age of 67 years applies to all cohorts from 1964 onwards. For each month that you have paid into the pension scheme before Standard age limit retirement, 0.003 points must be deducted from the access factor 1.
The earliest possible Entry date into retirement, by the way, is four years before reaching the standard retirement age. Then one would have to calculate with the maximum reduction of 14.4 percent or 0.144 points deduction on the access factor. Exceptions apply only to those insured for a particularly long time. If you have paid into the pension scheme for at least 45 years, two years before reaching the standard retirement age you can retire without a Deductions retire in the.
- The baker has had enough of bread, pretzels and rolls and wants to retire at the age of 65.
- She was born in 1964 and would therefore have to work until 2029 to reach her target.
- Since she wants to retire two years before reaching the standard retirement age, 24 months of 0.003 percentage points will be deducted from her access factor.
- The baker's access factor is therefore 0.928.
Calculating your pension Step Three: The current pension value
If the Pension increase If the salary is more or less, the difference is counted as a percentage of the pension value meant. This number determines the equivalent value that is paid out monthly for each accumulated earning point in retirement. The pension value is adjusted every year. Depending on how the economic situation but especially the gross wages of all employees develop. Paragraph 68 of the German Social Security Code (Sozialgesetzbuch VI) defines exactly how the Anpang is calculated. The current pension value in the West 34.19 Euro and in the 33.47 euros in the east. The same pension values will not apply in the new and old federal states until 2025.
Calculate pension Step Four: Include the pension type factor
In the statutory pension insurance system, there is not only the "normal" pension, which in technical jargon is also known as the "pension factor Old-age pension is called. According to the DRV, for example, 1.82 million people in Germany receive a pension Reduced earning capacity pension. If you are too ill to work, you will receive a pension for full reduction in earning capacity. Anyone who can work between a minimum of three and a maximum of six hours a day despite illness receives a pension for partial reduction in earning capacity. The type of pension is important for the pension formula, because depending on the pension, a different factor flows into the pension Pension factor with one.
- Old-age pensions, child-rearing pensions and pensions for full reduction in earning capacity have a factor of 1.
- pensions due to partial reduction in earning capacity have the factor 0.5.
- Full orphans' pensions have the factor 0.2.
- Half-orphan pensions have the factor 0.1.
- The widow's pension has a factor of 0.6 if the partner was born before 1962. Otherwise the factor 0.55 applies.
If you have the income points, the access factor, the pension value and the pension type factor together, you can now easily calculate how much your monthly income from the statutory pension would currently be. For this, the four Values simply with each other multiplied become.
- The baker ames that she will claim a normal old-age pension. Your pension factor is therefore 1.
- Her access factor is 0.928.
- She has accumulated 34.44 earning points so far.
- It comes from Essen and therefore calculates with the pension value west of 34,19 Euro.
- Accordingly, the baker would currently receive a monthly pension of 1092.72 euros.
The monthly earnings that can be calculated using the pension formula are a good Reference value for their own financial planning of retirement. Since the pension value in particular changes annually, you should by no means ame that the calculated value is guaranteed.
Especially since all major parties in Germany have set a reform of the pension as their goal. Be it, for example, the introduction of a Pension fund, as demanded by the Greens and the FDP, or linking the retirement age to the life expectancy, as economic experts have already suggested.