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pension calculator: How much is your own?

pension calculator: How much is your own?

To calculate the amount of your pension must distinguish three cases:

• Work at least 29 years?
• Work less than 11 years?
• Work for more than 11 years and less than 29?

If you work at least 29 years ...

Your pension is calculated on earnings: the number of years worked multiplied by two (eg 35X2) and get the percentage (eg 70%) which, multiplied by the average of the last salary / income provides the current board.

If you're self-employed, the average income of the last 15 years, if you are employed, the average salary of the last 10 years.

If you work less than 11 years ...

Your pension is calculated on a contributory shall be equal to the product of the sum of contributions during your working life (and re-evaluated based on the Italian economic growth, more inflation) and a coefficient (currently between 4 and 6%) which depends the age at which you retire (between 57 and 65).

To find out what your retirement will tell you if you're self-employed or employees and what are your prospects for income during your working life. You can not give a point estimate of what will be your retirement, but a general idea of \u200b\u200bwhat the hole to fill (the "pension gap) yes.

Here is the response rate on salaries for those who have worked the last 35 years. Working 40 years since, obviously, improves.

Employee

Growth Income / careers quiet

60/70%

Self-employed

income growth / career quiet

35/60%

Employee

income growth / career average

45/70%

Self-employed

income growth / career average

30/50%

Employee

income growth / brilliant career

40/60%

Growth Self-employed income / brilliant career

25/35%

If you work for more than 11 years and less than 29 ...

Your pension is calculated with the mixed method: it will be ie the sum of the pension calculated for years with the salary with that calculated by the method of contribution. For example say you are an employee who has worked for 10 years (before 1996) when the pension was calculated on a salary and who is working on other 25 (since 1996) from the contributory pension is calculated by the method.

For the first 10 years the pension is calculated as stated above to pay with: 10 x 2% = 20% of salary / average incomes in recent years.

For the next 25 years we must instead look at the chart above. Assume that the growth of income to be bright. We have a board that is 40/60% of the last wages. Let us assume the worst: 40% and we hold this as good for 25 years to 35, ie for 5 / 7. The 5 / 7 40% are about 28%. We add 20% +28% and ensure that the pension will be around 48% of the last wages.

How much and how to save for retirement

If up until now (and for those who retire in a few years) is the state pension, depending on the length of working life, 70 -80% of income in recent years, for those who entered the world of work in more recent times, there is the risk of stating at levels significantly lower in the middle of the last salary / income, or even less as in the case of certain self-employed.

The variables involved to calculate what is necessary to set aside for retirement are many, however, once established the most likely scenario (in terms of public pension will be paid) you can understand what are the steps to be taken to obtain a pension, which is comparable with current ones.

• The first step is to determine what is necessary to set aside each year of their income to create an integration of public pension that is capable of healing the differences in treatment of workers younger than those who are now close to retirement from working life.

This percentage increases with the decrease of public pension and retirement years are missing. If a worker provides a public pension that is 30% of final salary will have to put away most of those who have a public pension, as well as a worker lacking "only" 20 years to retirement will have to save each year, proportionally more than those who started work a year ago, because the time to put away money is reduced.

• The second step is to determine which type of investment most suitable based on the number of years left before the board. In particular, what is the pension fund (open or closed) and what is the line of investment (equity, balanced, bond ...) that you should choose depending on whether you are self employed or employees, or you are close to or far from retirement.

• The third and final step is to choose what is the best pension product available on the market.