How to calculate the formula for social security pension

The formula for calculating the social security pension is: monthly basic pension = basic pension + personal account pension.

The formula for calculating the basic pension is: (the average monthly salary of on-the-job workers in the year of enrollment + the average indexed monthly contribution salary of the person) divided by 2 multiplied by the number of years of contribution multiplied by 1%. The formula for calculating the individual account pension is: the amount stored in the individual account divided by the number of months of payment. The number of credited months is based on the retirement age and the average life expectancy of the population at the time, which is currently 195 at age 50, 170 at age 55, and 139 at age 60.

Besides the basic pension and individual account pension, the social security retirement pension may also include components such as transitional pensions, adjustments, and pension subsidies from local governments, and the specific calculation formula may vary by region and policy. In addition, it should be noted that the calculation of social security pension is also affected by the number of years of individual contributions, the contribution base, the contribution ratio and other factors. Therefore, when planning your retirement life, it is recommended to know the local social security policy and calculation formula in advance in order to better estimate your pension level.

In summary, the formula for calculating the social security pension includes two parts: the basic pension and the personal account pension, and may also be affected by other factors.

Legal basis:

The Social Insurance Law of the People's Republic of China

Article 15

The basic pension consists of the co-ordinated pension and the individual account pension. The basic pension is determined on the basis of the individual's accumulated years of contribution, the contribution wage, the average wage of local employees, the amount of the individual account, and the average life expectancy of the urban population.