How high the monthly pension will be in retirement can be calculated using the pension formula. This is what comes out of an above-average salary.
Bremen – Retirement is not a reason for joy for everyone. While some recipients find it difficult to finance their retirement due to a low pension, some other retirees want to stay employed instead.
However, anyone who has earned above-average income during their working life should definitely be able to make ends meet. An example calculation shows how much pension you get with a monthly salary of 4,500 euros.
This calculation shows: This is how much pension is possible in retirement with a gross monthly salary of 4,500 euros
If you want to know how much money will be transferred to your account each month during retirement, you need to take a look at the pension formula. As the German pension insurance explains, this is made up of the salary points, the access factor, the pension value and the pension type factor.
The salary points for the respective year are calculated from your own salary, divided by the average salary of all employees. The access factor takes into account additions and deductions at the time of retirement. The current pension value of 37.60 euros indicates the amount a pensioner is entitled to per earnings point. The pension type factor varies, as the name suggests, depending on the type of pension in question.
Pension type |
factor |
Pensions due to old age |
1.0 |
Pensions due to partial disability |
0.5 |
Pensions due to total disability |
1.0 |
Education pensions |
1.0 |
Small widows' and widowers' pensions (according to the quarter of death) |
1.0 (0.25) |
Large widows' and widowers' pensions (according to the quarter of death) |
1.0 (0.55) |
Half-orphan pensions |
0.1 |
Orphan's pensions |
0.2 |
Source: German pension insurance
For pensioners who retire at the standard retirement age and receive the classic old-age pension, both the access factor and the pension type factor can be ignored when calculating the monthly pension amount.
According to the example calculation, you are entitled to this pension if you have earned 4,500 gross per month
Anyone who earns 4,500 euros gross per month (54,000 euros per year) is significantly above the average gross salary of all insured persons for 2024, which is expected to be 45,358 euros. To determine the salary points, the annual salary is divided by the average salary of all insured persons. This gives a value of 1.19.
This value of 1.19 is then multiplied by a total of 50 years of work. For the sake of simplicity, this example calculation assumes that a monthly salary of 4,500 euros was always achieved over this period. This results in 59.5 pay points. Multiplied by the current pension value of 37.60 euros, this results in a monthly pension amount of around 2,237 euros.
Example calculation for pension entitlement with a salary of 4500 euros - actual pension may vary
In the unlikely event that someone has always had a gross income of 4,500 euros for over 50 years, he or she can expect a monthly pension of 2,237 euros, provided he or she retires at the standard retirement age. However, depending on individual factors, the actual value can vary to a greater or lesser extent, for example in the case of widows and widowers.
Sample pension calculation at a glance:
4500 euros gross monthly salary × 12 = 54,000 gross annual salary
54,000 euros gross annual salary / 45,358 euros (current average salary) = 1.19 pay points
1.19 pay points × 50 years of work = 59.5 pay points
59.5 earnings points × 37.60 euros (current pension value) = 2237 euros monthly pension
Anyone who earns around 1,000 euros less per month will of course also have to expect a reduction in their pension. In order to determine the pension amount in the case of a gross salary of 3,500 euros per month, the same example calculation can be made. If you are running short on available pensions, it may be worth moving abroad. In some countries, pensioners can even live tax-free.