1500 euro pension: You have to earn so much to not get poor in old age – statutory pension

Pension provision simply explained

How high will my statutory pension be later – which is probably not enough to live on? This is stated in the personal pension information. But who will be exactly, we have to make it striking today: How much do you have to earn to get a pension of 1000, 1500 or 2000 euros later?

To be able to calculate how much you have to earn to get XY Euro pension, we must first have the pension formula. It says:

Salary points * access factor * pension value * pension factor

There is:

  • The earnings points for the annual income. Specifically, the personal annual income is divided by the average annual income of the earning points. So if you earn exactly the average income, you get 1 pay point.
  • The input factor for retirement. Those who retire earlier receive a deduction. Everyone who works up to the ordinary retirement age receives 1.
  • The pension value for the value of the accrual points. The pension value is currently 34.19 euros in the old Länder and 33.47 euros in the new ones.
  • The pension factor for the pension type: national pension, full early retirement pension or partial early retirement pension. With the ordinary national pension, it is 1.

In addition to the pension formula, we now need this German average income for the year 2022. That is 38,901 euros.

If we now want to know how much one must earn to reach a certain pension level, we must now calculate the pension points in each individual case.

For convenience, we assume that we calculate the national pension and that the pension value remains the same over all years – which it does not. If you want to know exactly, you can use our pension calculator.

How much money do you get when you get older?

The maximum possible pension

Let’s start with the highest possible pension. For this, a potential pensioner must have earned the contribution-fixing ceiling at least every year for 45 years.

This changes every year and will be 81,000 euros in the new federal states by 2022. In the old federal states to 84,600 euros. Those who earn more than that do not have to pay more contributions. He does not receive an infinite pension for that. So we calculate:

84,600 euro salary / 38,901 euro average salary = 2.17 pension points per year * 45 = 97.86 pension points

Let us now insert the pension points in the pension formula:

97.86 pension points * 1 for ordinary national pension * 34.19 pension value West * 1 national pension = 3345 euro pension as maximum possible pension.

But it’s really just a dream amount. In recent years, the contribution ceiling and the average income have been such that one could receive a maximum of between 1.5 and 2.1 pension points per year. But what’s interesting: With more than 84,000 euros, you earn extremely well. And even as such, you only get around 3,000 euros in pension benefit.

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1000 euros to 2000 euros pension

It is already clear what this means for people who earn less well:

58.5 payment points = 2000 euro pension

43.8 payment points = 1500 euro pension

29.2 earning points = 1000 euro pension

If you want to calculate this yourself, you must use the pension formula:

Pension points * 1 for national pension * pension value (in our case West: 34.19 euros) * 1 national pension = desired pension

This then becomes: Desired pension / pension value = required pension points

We continue to calculate with these pension points:

Pension points / 45 * average income of 38,901 euros.

And look and see:

To receive a pension of 2000 euros, you must earn an average of 4214 euros per month for 45 years. For a pension of 1500 euros it is 3330 euros. And for 1000 euros it is 2,103 euros.

So the best thing is to start early with a good salary, but even if you change jobs later or get promoted, you can still save up your pension. What is your dream pension?

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