Retirement provision: What does a high pension actually look like?
Created: 09/27/2022, 04:47
By: Caroline Schäfer
The pension gap is huge.
Since the pension level is currently 48 percent, pensioners have to make do with a little less than half of their previous income.
© Michael Gstettenbauer/imago
The statutory old-age pension is based on the average income of all insured persons.
The higher the income, the more pension there is.
Frankfurt – The pension in Germany is hardly enough for many seniors to live on.
According to the Federal Ministry of Social Affairs, every fifth person drawing a pension has less than 500 euros a month at their disposal.
Corona pandemic, energy crisis and rising costs for food and fuel mean an additional burden on the wallet.
But what does it actually mean to have a good pension?
How high would the monthly pension amount have to be in order to be able to financially enjoy a well-deserved retirement?
Pension is based on average gross wage
In order to determine the amount of the pension, many factors must be taken into account, but above all income.
This is set in relation to the average gross wage of all those with statutory health insurance.
According to the
German pension insurance
, the average gross wage is currently 38,901 euros, which would be around 3242 euros a month.
When determining the monthly contribution, so-called payment points are then decisive, as reported by fr.de.
"The amount of the earnings points results, among other things, from the ratio of the income of the insured person to the average income of all insured persons," informed the
German pension insurance
.
So anyone who has exactly reached the average earnings of 38,901 euros will receive one pension point.
If the income is lower, about half, there would only be 0.5 pension points.
The lower the income compared to the average wage, the fewer earnings points there are.
This is what retirees with an average income get after 45 years
The standard pension, also known as the basic pension, is often used as a popular calculation example.
This calculates the standard pension level that retirees can expect to receive after 45 years of contributions and average earnings.
Accordingly, those with statutory insurance would receive one pension point for each year.
Last year, the standard gross pension was EUR 1,538.55 in the West and EUR 1,506.15 in the East.
Since the pension level is currently 48 percent, pensioners have to make do with a little less than half of their previous income.
However, for many, the salary does not amount to the average gross income.
According to
the Federal Statistical Office
, some professions were at the lower end of the payroll last year.
industry | Gross salary per month (2021) |
|---|---|
accommodation | 2116 euros |
gastronomy | 2156 euros |
Mediation and leasing of workers | 2494 euros |
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In contrast, the top-earning sectors in 2021 included “extraction of crude oil and natural gas” (EUR 6,617), “coking plant and mineral oil processing” (EUR 6,410) and “broadcasters” (EUR 6,018).
A good pension therefore requires a high income.
If you want to withdraw 2000 euros later, you need a total of 60 payment points.
As reported by
infranken.de
, that would correspond to a gross wage of at least 4,500 euros – and that for 45 years.
However, the 2018 earnings structure survey by the
Federal Statistical Office
shows that two out of three full-time employees (63 percent) earn less than the average.
Only a third (37 percent) of Germans achieve higher earnings and thus also raise the average value on which the amount of pension is based.
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This is the average pension in Germany
According to the
German pension insurance
, in 2021 men received an average of 1203.53 euros when they entered retirement.
Women, on the other hand, received an average of 856.05 euros.
Health and long-term care insurance contributions as well as taxes are deducted from this.
There is not much left to live on then.
Many therefore have to make private provisions whenever possible.
This year, on average, there should have been something more for everyone.
Because: From July 1, 2022, the federal government has increased the pension.
Purchases in western Germany increased in July by 5.35 percent and in eastern Germany by 6.12 percent.
(cheese)
