While the pension reform is increasingly stirring people’s minds, future retirees are now calculating the amount of their future retirement pension. Based on the average annual salary, it remains essential in order to take into account one’s life prospects and comfort. How do you calculate the average annual salary and thus estimate your retirement pension?

This is the major figure to know for estimating your retirement pension: the average annual salary predicts your future quality of life, once you retire. Therefore, the higher your average annual salary, the more comfortable your retirement pension will be when the time comes. It is thus calculated according to your 25 best years of income and corresponds to an average. The pension funds are responsible for this estimate directly, but you can check it on your side.

Used to calculate the basic pension, the average annual salary must be particularly precise so as not to harm the future retiree. In particular, we have the obligation to apply the proration, the rate, as well as any increases. It should be noted that the amounts withheld each year will be revalued according to inflation and that each annual income is taken into account within the limit of the Social Security ceiling put into effect for that specific year. To perform the calculation yourself, it will be useful to list your annual income, compare this income with the Social Security ceiling each year, update the annual income and calculate an average.