JobatHeadlines about pension (reforms) are regularly discussed. Enjoying your old age comfortably – and not too late – is close to the hearts of many people. But how big does your savings account need to be to benefit from your pension with the same standard of living as when you worked? Jobat.be calculated it.
How is your pension calculated?
In short, three factors play an important role: how many years you worked (where periods when you received benefits also count), your gross salary (fixed salary, an end-of-year bonus and extra-legal benefits on which you pay social contributions, such as a mobile phone) and your family situation.
The pension service calculates how much you earned for each year that you worked. They revalue that amount depending on the year, and then they divide it by your number of career years – for a full pension that is 45. They then multiply that amount by 60 percent, unless you are married to someone who receives a very low pension – then multiply them with 75 percent. The sum of all pension shares is your annual pension.
How much pension will you receive later? This is how you calculate it yourself.
What will the difference be with your net salary?
You roughly calculate your statutory pension by multiplying your average salary by 60 percent if you worked for 45 years. In order to continue to live comfortably, it is almost necessary that you put some money aside over the years. This is how you protect yourself against that income drop.
For example, someone with an average gross salary of 3,500 euros receives a pension of approximately 2,100 euros gross. However, a retiree does not always need an income that is as high as before. For example, the mortgage may already have been paid off. Other factors also make every situation different. Suppose someone needs 80 percent of their salary to live comfortably, in this example that amounts to 2,800 euros, or 700 euros more than the pension. Because we are calculating here with the gross pension, from which a ZIV contribution, solidarity contribution and withholding tax may be deducted, the 700 euros is a minimum.
The statutory retirement age will be 67 from 2030. If you compare those figures with the average life expectancy of about 82 years, you know that an employee will have to live on his pension for an average of fifteen years. If you live to be 97, for example, the amount you should put aside will double.
All in all: at least 700 euros in savings per month, for fifteen years: that equates to a savings account of at least 126,000 euros. If you live to be 100, that is a minimum of 277,200 euros. Naturally, it is advisable to set up an even larger reserve for unexpected costs. Another good rule of thumb is to set aside 85 times your net salary. For example, for a net salary of 3,000 euros, this is 255,000 euros.
Reading tip: What influence does working part-time have on your pension?
Which extra-legal conditions are useful to supplement your pension, and which would you rather exchange for a higher gross salary?
Employees are increasingly allowed to determine their extra-legal conditions themselves. This way you can tailor your salary package to your needs and wishes. An extra-legal benefit can be more fiscally attractive than a higher gross salary – you will have almost as much net income as someone who earns much more gross, while you enjoy meal vouchers or a salary car, for example.
What are your fringe benefits worth in euros? We made the calculation.
But if you have a higher gross salary, you will not only have more holiday pay and a nicer thirteenth month, your pension amount will also be higher. For your pension, there is only one extra-legal extra that is more beneficial than a higher gross salary. This is a group insurance, where your employer saves for your pension. You only pay taxes on it when you retire and receive the amount.
Having a good salary is therefore important during and after your professional career. Compare how you score in this area using the box below.
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2024-01-12 05:40:00
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