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Accrual of Pension Points: These Time Frames Favorably Increase Your Balance

Accrued pension entitlement points significantly influence pension amount. Earning a higher number of points translates to a larger pension allocation. It's essential to note that points aren't exclusively earned through income.

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Accrual of pension points: these intervals boost your pension balance
Accrual of pension points: these intervals boost your pension balance

Accrual of Pension Points: These Time Frames Favorably Increase Your Balance

In Germany, the accumulation of pension points plays a significant role in determining one's retirement benefits. Here's a breakdown of how the system works:

  1. Vocational training times can be upgraded by the pension insurance, with additions of up to 0.75 entitlement points possible for a maximum of three years.
  2. Everyone who pays contributions into the statutory pension fund, regardless of whether it is voluntary or mandatory, receives pension points.
  3. The scale ends at the current contribution assessment limit of 96,600 euros gross annual income, meaning no more than just under two pension points can be earned per year. Currently, 1.5 pension points are earned for around 75,000 euros.
  4. Sick pay recipients receive pension points for 80% of their previous salary.
  5. If your income is below the average, you will earn fewer pension points. If you earn more, you will be credited with more points. The conversion key for pension points is legally defined as: individual gross income divided by the average income of all contributors. In 2025, the average income of all contributors will be exactly 50,493 euros. Therefore, one income point will be credited for every 50,493 euros in 2025.
  6. School time and a university degree are not taken into account when collecting pension points, but they can be counted as recognition time.
  7. Classical school times do not count towards pension points.
  8. Maternity leave duration is covered by the recognition period, usually six weeks before and eight weeks after birth. Mothers receive the personal average from their working life credited for these weeks in their pension account.
  9. Unemployment periods are taken into account, with the employment agency taking over the contribution for the unemployed based on 80% of the previous gross salary.
  10. Vocational school attendance is recognized, up to a maximum of 0.75 points per year.
  11. In Germany, additional pension bonus points are granted primarily for activities such as raising children and caring for relatives in need of care. This includes those who predominantly provide care to close family members with a minimum care level 3, or care for a disabled child living in the household under social protection conditions.
  12. Those who support helpless people and have to cut their careers short due to this, have this commitment counted towards their pension. The number of bonus points depends on the type of care and the care level.
  13. Pension points are also credited for certain periods of unemployment and occupational disability.
  14. It's important for contributors to compare the pension insurance record with their resume for verification, and with their employer's social security certificate. Any discrepancies should be reported to the pension insurance.
  15. A pension point is worth 40.79 euros, meaning currently, 40.79 euros in pension are paid out per month for each point collected.

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