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A gross monthly income of 6,500 euros over your entire career. But how much pension can you expect?
Frankfurt – Is the pension enough to live on? Quite a few people ask themselves this question shortly before retirement. Poverty in old age is becoming more and more of a problem. However, this worry is likely to be less of a problem for those who have earned a high income in their professional lives. We have calculated how much pension remains with a monthly salary of 6,500 euros.
Anyone who earns above the average salary of all insured people for years can hope for a high pension. © Sabine Gudath/imago
6500 euros monthly salary: pension can be calculated using a formula
The pension calculation can be quite complex. Finally, the amount you receive after your working life depends on various factors such as salary and number of years worked. However, the future monthly pension can be calculated using a formula, the so-called pension formula.
The pension formula
Pay points x access factor x pension type factor x current pension value = monthly pension amount
This multiplies various variables together, including the earning points earned, the access factor, the pension type factor and the current pension value. In order to determine the salary points, the salary for the year in question is compared with the average salary of all insured persons. The German pension insurance writes: “If your earnings correspond exactly to the average earnings in the corresponding year, this results in 1 salary point.”
The current pension value is given in euros. This is the amount that pensioners are entitled to per earnings point. After the pension increase in July, it is currently 39.32 euros. The access factor, on the other hand, takes into account surcharges and discounts. For the old-age pension without any surcharges or deductions, the access factor is 1.0. The pension type factor for old-age pensions is also 1.0. However, this may vary for other types of pensions.
Source: German pension insurance
How much pension is left with a gross monthly salary of 6,500 euros?
Anyone who receives a gross salary of 6,500 euros per month significantly exceeds the annual average income. According to the German pension insurance, this is provisionally 45,358 euros for 2024. The salary points therefore result from the annual salary of 78,000 euros (at 6,500 euros per month), divided by the average salary of all insured persons.
This is what the bill looks like:
- 6500 euros salary × 12 months = 78,000 euros annual salary
- 78,000 euros annual salary / 45,358 euros average salary = 1.72 pay points
- 1.72 pay points × 45 years of work = 77.4 pay points
- 77.4 earnings points × 1.0 access factor × 1.0 pension type factor × 39.32 euros pension value = approximately 3043 euros monthly pension
So if you earn 6,500 euros every month for 45 years, you can theoretically expect a monthly pension of 3,043 euros. According to a study by the German Economic Institute (IW), everyone with such a pension is among the financially better-off pensioners. This formula can also be used to calculate the pension amount for all other salaries.
However, this is just an example and is presented in a very simplified manner. Because: Gross income and the average earnings of all insured persons change over the years. In addition, surcharges and deductions as well as the care of children and relatives also play a role in calculating the pension amount. (which)
