Calculate pension: This formula works

If you want to know how much pension you are getting, do not wait for the decision. How to calculate your pension in four easy steps.

  • How much pension do you get in old age? The annual pension announcement states this
  • But it is not necessary to wait for the letter from the pension insurance company
  • Because with the pension formula, everyone can work it out themselves – in four simple steps

Those who have reached the age of 27 and are insured under the statutory pension scheme receive theirs once a year pension announcement sent. In the email from the German pension insurance, the person can then read how high his or her monthly pension can be in the future.

But if you want to plan your retirement financially, you do not have to wait for the DRV. With a simple calculation, it is possible to determine relatively accurately how high the monthly pension will be. In which in the so-called annuity formulaExtraordinary investments in the pension, such as compensation payments, bonuses or Christmas bonuses, are not taken into account.

To understand the annuity formula, one must first know how the monthly gross pension is calculated. Four factors are crucial for this:

Calculate pension – step one: How the payout points work

that payment point calculated as the ratio of your own annual income to the average annual income of all insured. According to preliminary estimates, it is currently 38,901 euros a year in the west and 37,333 in the east. Anyone who earns as much as the average earns exactly one earning point for the corresponding year. If the salary is higher or lower, the difference is credited as a percentage of the earning points. To find out, the insured must divide his annual gross income by the average gross annual income of all the insured.

Please note: Due to contribution assessment limit there is a maximum salary that can be given up. Earnings above this maximum are no longer included in the calculation of earning points. The contribution limitation limit is regulated annually and is attached for 2022 84,600 (West), 81,000 (East) annual income.

get it mothers or fathers attributed to the pension for up to three years for each child born after 1992. For children born before 1992, the maximum is two years and six months. DRV calculates these years more or less as if the insured had earned the average gross income during this time. Per year so-called parenting time So there is about one charging point. Those who continue to work while raising children are credited with the payment points in addition to the “normal” points. But beware: You must apply for the child rearing periods on DRV yourself and only one parent can benefit from them at a time.

sample calculation

  • An employed baker earned 30,000 euros in 2022.
  • Divided by 38,901, this results in about 0.78 earning points going into your retirement account for this year.
  • The baker also has two children, for whose upbringing she receives a total of five payment points.
  • In total, the baker has worked for 41 years and by 2021 has collected an average of 0.7 earnings points per year.
  • The baker has a total of 34.48 earnings points (41×0.7 + 0.78 + 5).

Calculate pension Step two: This is what the access factor is about

Of access factor depends on when you retire. Everyone who retires after reaching the statutory retirement age has an access factor of 1. For everyone born after 1964, the retirement age of 67 applies. For each month that one before it retirement age retires, 0.003 points must be deducted from admission factor 1.

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The earliest possible retirement age is four years before you reach the statutory retirement age. Then you need the maximum reduction expect a deduction of 14.4 percent or 0.144 points from the access factor. Exceptions only apply to those who have been insured for a particularly long time. Anyone who has paid into the pension insurance for at least 45 years can do without two years before reaching the normal retirement age deduction To retire.

sample calculation

  • The baker has had enough of bread, pretzels and rolls and would like to retire at the age of 65.
  • She was born in 1964 and therefore had to work until 2029 to reach her goal.
  • Since she wants to retire two years before she reaches the ordinary retirement age, her 24 months are deducted 0.003 percentage points from the entry factor.
  • So the baker’s access factor is 0.928.

Calculate pension Step three: The current pension value

If from pension increase is spoken, so usually it pension value mente. This figure determines the equivalent value paid monthly for each payment point charged at retirement. The pension value is adjusted every year. Depending on how the financial situation develops, above all gross salary for all employees. It is clear from section 68 of the Social Security Act in book VI how the regulation is calculated. The pension value is currently Vest 34.19 euro and im East 33.47 euros. Forecasts from the Federal Department of Labor mean it should rise to 36.02 (west) and 35.52 (east) by July 1, 2022. The same pension values ​​will only apply in the new and old federal states by 2025.

Calculate pension Step four: Include the pension type factor

In the statutory pension insurance, there is not only the “normal” pension, also in technical language retirement pension Called. According to the DRV, for example, 1.82 million people in Germany receive one early retirement. If you are too ill to work, you will receive a full early retirement pension. Anyone who, despite illness, is able to work between a minimum of three and a maximum of six hours a day, receives a pension for partial disability. The form of pension is important for the pension formula because different amounts run depending on the pension pension factor with a.

  • National pension, childcare pension and pension due to full incapacity for work have a factor of 1.
  • Pensions due to partial impairment have a factor of 0.5.
  • Full child pension has a factor of 0.2.
  • The half-child pension has a factor of 0.1.
  • The widow’s pension has a factor of 0.6 if the partner was born before 1962. Otherwise, the factor of 0.55 applies.

If you have earning points, access factor, pension value and pension type factor together, you can now easily calculate how high the monthly payments from the statutory pension would be at the moment. That’s what the four of them have to do Values just with each other times will.

sample calculation

  • The baker assumes that she will demand ordinary public pension. Your pension factor is therefore 1.
  • Your access factor is 0.928.
  • She has so far collected 34.48 payment points.
  • She comes from Essen and therefore calculates the pension value West of 34.19 euros.
  • The baker would therefore currently receive a monthly pension of 1,093.99 euros.

The monthly benefits that can be calculated using the pension formula are good benchmark to your own financial planning of retirement. However, as the pension value in particular changes annually, it should under no circumstances be assumed that the calculated value is also guaranteed.


Pension in Germany – facts and history

  • System: that statutory pension works according to the principle of equivalence and solidarity.
  • Annuity types: Those are still there Basic, early and survivors’ pension.
  • exceptions: A large majority of the self-employed and freelancers are exempt from statutory insurance.
  • Financing: The statutory pension in Germany is basic pay when you go.
  • problems: The problems of underfunding are mainly due to the increasing aging population in Germany.
  • Three pillars: that pension scheme in Germany is based on three pillars. This includes statutory, corporate and private pension schemes.
  • Origin: She became Chancellor on July 22, 1889 Otto von Bismarck officially introduced.


Especially since the traffic light coalition announced a reform of the pension during their term of office. For example, the introduction of a Pension savings planned as required by the Greens and the FDP before the election. Economic experts have also proposed linking the retirement age to life expectancy.

More articles from this category can be found here: Politics

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