Do you have any idea how much you will get when you stop working? Find out how your pension is calculated

Although it is also a topic for those just starting out in the business, calculating the agony of retirement, especially those who are approaching retirement. Do you know how much you’ll get when it’s your turn? Learn arithmetic!

With regard to social security, Old age pension It is nothing more than the result of the socialist profession and the bonuses registered in the name of the beneficiary.
For citizens, retirement is, in most cases, the (only) expected support for the years following the years in which they started working.

Learn how to calculate your retirement
It's important to know how to calculate how much you'll receive in an Old Age Pension - not least to prepare and perhaps evaluate alternatives that will make your retirement moment more comfortable.

To do this, it is necessary to consider Reference wagethe General rate of pension formation And the Sustainability factor.
The amount of the statutory pension is determined from:

- Reference wage product
To find the reference salary, you must divide the gross salary from the taxable occupation by the number of calendar years of deductions multiplied by 14.


Total Revalued Bonuses / Number x 14


As you know, the number of calendar years for which wages are recorded is limited to 40.  Thus, if you have more, add the 40 highest paid.
In contrast, revaluation of rewards involves updating your rewards using revaluation transactions publishedAnnually by state.

The general rate of pension formation
This corresponds to the number of calendar years with deductions considered relevant to the social protection system.  A calendar year is considered to be the year in which at least 120 days of pay are recorded.


Annual rate x number of calendar years relevant to the account, up to a maximum of 40 years


It should be noted that the annual fee depends on the contributing profession.
For example, “If you have 20 years of deductibles or less, the annual rate equals 2%, in other words, meaning that to find the overall training rate you would have to multiply the number of years of deductibles by 2%.”
If the period of contributory service is longer than 21 years, the annual rate ranges between 2% and 2.3% for each relevant calendar year, depending on the value of the reference wage.

Sustainability factor (when applicable)
The sustainability factor relates to the evolution of life expectancy and applies only to beneficiaries who request retirement before the minimum age of arrival (66 years from 4 months, in 2023).
As for early retirement starting in 2023, applying the sustainability factor leads to a decrease in the value of the pension by 13.83%.
However, this factor does not apply in every case, with modifications:

Old-age pensions for beneficiaries who have become pensioners at the normal or personal age for receiving a pension, or at a higher age;
old-age pensions under the age flexibility system;
Old-age pensions under the advance system for very long contributory occupations;
Old age pensions resulting from a combination of disability pensions.


The amount to be received will result in the following formula:

Pension = Reference wage x Total training rate x Sustainability factor (where applicable)




Pay attention to adjustments in your retirement account!
Despite the general formulas, there are adjustments to be made, According to the date of registration in Social Security.
So, if you have Registration before December 31, 2001, the renewal value will consist of two parts: one is calculated based on the best 10 years of reductions in the last 15 years;  Another is based on all the years of deductions in your career, up to a maximum of 40 years.
The formula to be calculated is:


Annuity = (P1 × C3 + P2 × C4) / C



P1 - pension resulting from the product of the product of the total training rate and the reference salary obtained on the basis of the best 10 years out of the last 15 years;
C3 - Number of years of discounts until December 31, 2001;
P2 - The pension is calculated based on all years of contributions from your contributory career, up to a maximum of 40 years.  It results from the product of the global training rate by the Radio Regulations;
C4 – Number of years of discounts completed as of January 1, 2002;
C - Number of years of discounts.



The value of P1 will be calculated as follows: P1 = RR x 2% xn



RR - reference wage = TR10/15 divided by 140 (i.e. 14 months x 10 years);
TR10/15 - Total pay for the 10 years in which you took the most deductions, and the last 15 years of deductions;
N – Number of years of discounts (minimum 15 and maximum 40).

The value of P1 is limited to 12xIAS (Indexing social support), i.e. 5,318.4 euros.  However, if P1 is greater than P2 or if both are greater than 12xIAS, the pension will be calculated as if your registration in the Social Security system had occurred after January 1, 2002.
Remember that to get the final value of the pension, you will have to apply a sustainability factor, or bonuses, if any.

On the other hand, if you were enrolled after January 1, 2002, the calculation is based on all years of deductions in your contributory career, up to a maximum of 40 years.  As we have already seen, if there are more than that, the best forty is counted.


Pension = RR x Gross Training Rate



RR - reference wage = TR divided by (nx 14);
TR - total earnings over a career, maximum 40 years;
N - Number of years of deductions (minimum 15 and maximum 40).

If you have 20 years or less of deductions: Pension = RR x 2% xn If you have 21 years or more of deductions, the pension is based on the reference salary.
Here too, to obtain the final value of the pension, the sustainability factor or bonuses, if any, must be applied.

If after all this the calculation still seems complicated to you (which it undeniably is), you can perform an old-age pension simulation from your personal page. Direct Social Security.  After all, this entity was recording your contribution age and would use it to calculate your retirement.
In addition to the estimated total value of your pension, the simulator will tell you the age at which you can stop working.

Read also: