Poverty in old age is a major problem in Germany.

Every pension is different and the amount of the monthly payment is individual. German pension insurance (DRV) calculates it from various values.

The pension formula results from multiplying the earned points, the access factor and the type of pension, as well as the current pension value, writes Fenix.

Earning points are calculated annually by comparing income with the average income of all insured persons. If the income exactly corresponds to the average income in the respective year, this results in one earning point.

Accordingly, time spent raising children (up to age 10) or caring for relatives is also taken into account.

It is also taken into account when and who will retire. If you retire earlier, there are deductions. Those who wait longer can receive supplements.

If you retire exactly at the specified time, the retirement factor is 1.0 – and there are no deductions or supplements. The old-age pension has a pension type coefficient of 1.0, while, for example, an orphan's pension has a factor of 0.2. The current pension value is 37.60 euros for West Germany and 37.60 euros for East Germany.

This is the lowest pension in Germany

But how much, or rather how little, would a pensioner have to receive each month in the worst case? The online portal “Finanztip” calculated: “In the worst case, you will receive 563 euros per month.”

“Finanztip” illustrates this “worst possible scenario” with an example: A woman never worked in her life and was married to a self-employed entrepreneur. During the divorce proceedings, a mountain of debt came to light, and because of the self-employment, the woman did not receive a single pension point. Therefore, the woman is entitled neither to a statutory pension nor to a basic pension.

Source: poslovni.hr