Pensions are computed on the basis of a formula
Pensions are computed on the basis of a formula which takes
into account factors such as the insured’s gross income, the av-
erage income of all the persons insured by the system, and the
recognized period of coverage. Pensions are generally adjusted
annually depending on the development of the general earnings
level.
In 2005, the ratio of the number of retired persons to the
number of contributors was added as a supplementary pension
adjustment factor (Nachhaltigkeitsfaktor). Since then, pensions
have not risen as fast as wages and salaries as a consequence.
EU Forecast
euf:ba.18g:184/nws-01