The personal account pension is calculated based on your personal savings and the number of months in which the personal account pension is calculated. The Social Security Bureau will have a special calculation formula.

How to calculate personal account pensions 1. The current pension calculation formula is based on the 2005 State Council Decision on Improving the Basic Pension Insurance System for Enterprise Employees.

The basic pension calculation formula and the personal account pension calculation formula are unified across the country.

The transitional pension calculation formula is determined based on the actual local conditions.

2. The basic pension is equal to the average social salary in the previous year of retirement × (1 + personal average contribution index) ÷ 2 × payment years × 1%.

It can be seen from the calculation formula that the basic pension is mainly linked to the average social salary in the previous year of retirement.

However, the payment period and average payment index also play an important role in determining the specific proportion of payment.

3. The personal account pension is equal to the balance of the personal pension insurance account at the time of retirement ÷ the number of months in which the retirement age is determined.

4. The transitional pension is determined by each province and city, but it is mainly linked to the payment period before the implementation of the pension insurance system that combines collective accounts and individual accounts.

The main components of personal account pensions: 1. First, basic pension.

The payment period is specific to the month, and each month can be converted into 0.0833 years.

Therefore, every extra month paid counts.

2. Second, personal account pension.

The balance of the personal account is now credited to the personal account at 8% of the monthly payment base.

If the payment base is the same, for every additional month of payment, the amount of money in the personal account will be increased.

3. Third, transitional pension.

Generally speaking, only older employees with longer working experience who started working before the establishment of a local pension insurance system that combined pooled accounts and individual accounts from 1992 to 1997, and who have deemed payment years and actual payment years, will have transitional pensions.

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