- Pension in Germany: This is how much you will get later with your gross and hourly wages
- that statutory public pension depends on several factors
- inFranken.de explains “pension formula” that German pension insurance
- Private pension scheme is important if the statutory pension is not sufficient
Will I be able to live off my pension later? A question that probably every adult asks themselves from time to time when thinking about retirement. Because there will be fewer and fewer workers due to demographic changes to help fund current retirees, pension probably one ever smaller share of one’s previous net income power off. To get an overview of your pre-retirement age future pension amounts to get a simplified formula can be used. InFranken.de shows how to do it.
Pension formula: These factors affect the size of the pension
Pension is a complex issue. The size of the statutory pension depends on several influencing factors. The German pension insurance sends everyone over the age of 27 annual pension information by post, which contains the personal retirement age and the projection of the pension. A person is entitled to a statutory state pension, depending on the type of old-age pension Minimum insurance period in the statutory pension insurance (waiting period) from at least five to 45 years can show and have reached the respective retirement age.
With the so-called pension formula, you can get a simplified picture yourself. This reads as follows:
Monthly pension amount = earning points x access factor x current pension value x pension type factor
This value is the most important in the calculation. Here you compare your gross annual salary with the average income of all German insured persons. This amounts to 40,551 euros for 2020. For 2021, 41,541 euros is given, but the old value still applies to the calculation of the German pension insurance. If your salary corresponds exactly to this value, you get one payout point.
This measure describes whether a pension is sought exactly at retirement age (the value is then 1.0), or earlier or later. There is a deduction for early entry, and there is a supplement if you initially renounce your pension when you have reached the entry age.
Current pension value
A payment point corresponds to this value. It is constantly adapted to the economic situation. It is currently EUR 34.19 for West Germany and EUR 33.47 for East Germany.
pension type factor
For all forms of statutory pension, this factor is 1.0.
This is how much pension you get with your gross salary
If someone gets exactly the German average salary of 40,551 euros, they get one pension point per year. If he lives in the west and starts his statutory pension after 45 at the age at which he started, the following calculation applies to him:
45 x 1 x 34.19 = 1538.55 euros gross pension
For example, if you earn 1,000 euros gross per month, i.e. 12,000 per year, you get 0.3 earning points (12,000 divided by 40,551). This results in a monthly gross pension of 45 x 0.3 x 34.19 = 461,565 euros.
How to calculate the pension with the hourly wage
Focus on the web includes the hourly wage and calculates with an average weekly working time of 37.7 hours, set by the Hans Böckler Foundation 2017 and the average wage for 2021. With this number of hours, an employee would work “1960.4 hours – without holidays and sickness . In order to earn 41,541 euros gross with this number of hours, the employee must earn 21.19 euros per hour. This then gives him a pension point and a pension of 34.19 euros per month in old age.”
Pointing out that these are only model calculations and that the figures will change again in 2022, Focus Online summarizes how the current hourly wage affects later pensions. For ten euros an hour, for example, you would get 16.13 euros after one year and 726.07 euros after 45 years. With an hourly wage of 16 euros it would be 1161.71 euros after 45 years, with the 21.19 euros calculated above you would get 1538.55 euros after 45 years.
Opposite to Bild.de said pension expert Johannes Steffen that an hourly wage of 16.27 euros is currently needed in order to be adequately provided for in retirement. You should not rely on the statutory pension. There are a number of ways to provide private care.
My pension is probably not enough – private provision is important
At each stage of life it is worth thinking about which ones Possibilities for personal pension there is. Because you don’t just have to rely on the statutory pension scheme. An individual consultation makes sense, as the different strategies are not easy to understand. The German pension insurance provides an overview of the options in every life situation. young professionals can, for example, benefit from the long time until retirement. ONE Riester pension contract or that employer-funded pension is the key word here.
Families Riester pension is also recommended, especially in connection with the purchase of one home. That too Rental A property can be of great benefit in retirement. Next to is investments highly recommended in times of low interest rates. With Equity Index Funds (ETFs) can, for example, be saved in the long term. The wealth center recommends that you start at least 15 years before you retire with the so-called stage strategy to start setting aside money that you are not dependent on in the short or medium term.
Also interesting is a study by Stiftung Warentest that explains how to 100,000 euros over ten, 20 or 30 years can save.