1.78 as a key value

How our income determines our future pension

A percentage of our wage or salary is credited to our pension account each year.

(Bild: stock.adobe.com)

How does income affect your pension? The "Krone" explains why the value of 1.78 plays a decisive role in our future pension and what we can do to ensure we have more money in retirement.

1.78 percent of gross annual earnings is always transferred to the pension account, which all employees can view online here. The amounts credited to the account are revalued every year so that there is no loss of purchasing power.

On retirement (at least 15 years of contributions are required), the sum of all amounts accumulated up to that point, including the initial credit, is the gross annual pension - divided by 14 is the gross monthly pension. But why does 1.78% of gross income go into the pension account?