22.4 percent of people over 80 in Germany were affected by poverty in 2021. This means that more than a fifth had a maximum income of 1,167 euros per month available.
The pension formula is essential to understand what the future amount will be in retirement. It is made up of earnings points, the access factor, the current pension value and the pension type factor. The result of the calculation is the monthly pension amount. The average gross salary of all insured persons for 2024 is 45,358 euros. This is assumed that a gross monthly salary of 2,700 euros was earned over 50 years of working time. In practice, consumers have to put their annual salary in relation to the German average income in order to calculate their annual earnings points. In the next step, the value of 0.71 is multiplied by the total salary of 50 years. This results in the “pension estimator” provided by the German Pension Insurance. It can only be rounded down to 35 or up to 40, which is why we have calculated the pension value using 35 points.