How is the personal pension calculated?

Personal pension is calculated as follows:

Personal pension = basic pension + personal account pension + transitional pension

Basic pension = (local average salary of employees in the previous year + my average indexed contribution salary) / 2 × years of contribution × 1%

My average indexed contribution salary = local average salary of employees in the previous year × my average contribution index

My average contribution index is the average value of the contribution salary index of the contributors in previous years. Average contribution index

Individual average contribution index is the average value of the contribution wage index of the contributors in the past years, contribution wage index = individual contribution wage base ÷ average social wage.

Personal account pension = personal account storage amount / number of months of accrual

Personal account storage amount is the amount of personal pension accumulated by the insured person's annual contribution, which can be inquired through social security card or Alipay.

The number of months of payment is determined according to the retirement age and the average life expectancy of the population at that time, which is generally (average life expectancy of the population - retirement age) × 12.

Transitional pension = average monthly income of the local community at the time of retirement × index of the person's deemed contribution × number of years of deemed contribution × transition coefficient

Transitional pension is designed to make up for the part of the working life that has not participated in basic pension insurance before 1992, and the part of working life that has not participated in basic pension insurance before 1992. The transitional pension was established to make up for the part of the working life that was not covered by the basic pension insurance before 1992.

The deemed contribution index is determined according to the occupation, position and technical grade of the insured person, and is generally between 1.0 and 1.5.

The deemed contribution years are the working years before 1992.

The transition coefficient is determined according to the level of local economic development and financial capacity, generally between 1% and 1.5%.

I hope the above information is helpful to you.