🔴¿CÓMO se LIQUIDA la PENSIÓN de VEJEZ en COLPENSIONES? |Cómo CALCULAR el monto de MESADA PENSIONAL

How to Calculate Your Pension in Colpensiones?

Introduction to Pension Calculation

• The video aims to explain simply how pensions are calculated in Colpensiones, emphasizing that many people may not be aware of their pension amounts.

• The calculation involves applying a percentage (65%, 70%, or 80%) to the average of your salaries, which determines the pension amount.

Key Ingredients for Pension Calculation

First Ingredient: Income Base for Liquidation (IBL)

• The IBL is a technical term representing the average salary based on monthly contributions, regardless of employment type.

• It can be calculated from either the last 10 years of contributions or the entire work life, depending on which option yields a higher average salary.

Second Ingredient: Number of Weeks Contributed

• It's crucial to verify that all worked weeks are accurately reflected in your labor history. Extra weeks beyond the legal requirement (1300 weeks) can increase your pension amount.

• Individuals should download their detailed labor history from Colpensiones and correct any inconsistencies before retirement.

Third Ingredient: Replacement Rate

• This percentage is applied to the IBL and is essential for calculating the final pension amount. Further details will be provided in subsequent videos.

Important Considerations

Minimum Pension Guarantee

• If calculations yield a pension below the minimum wage, it will default to equal the minimum wage as mandated by Article 48 of Colombia's Political Constitution.

Present Value Adjustment

• All contributions must be adjusted to present value using consumer price indices since historical values do not reflect current purchasing power.

Conclusion and Next Steps

• The first conclusion emphasizes that IBL results from updating past contributions and averaging them over selected time frames.

• Future videos will provide practical examples and tools for viewers to calculate their pensions effectively.

Understanding Pension Calculations in Colombia

Key Elements of Pension Calculation

• The pension amount is determined by Article 34 of Law 100 of 1993, which states that the monthly pension for individuals with the minimum required contribution weeks (1300 weeks) will be 65% of their average base salary.

• For example, Doña María, who has exactly 1300 weeks and an income base level (IBL) of 3 million pesos, would receive approximately 1 million 950 thousand pesos as her pension. This approximation accounts for certain adjustments.

Impact of Additional Contribution Weeks

• Don José, with 1500 contribution weeks, benefits from a higher replacement rate; his initial rate increases beyond the standard 65% due to additional contributions. For every extra 50 weeks contributed, the replacement rate increases by 1.5%, potentially reaching up to a maximum of 80%.

• The minimum pension amount remains around 65% of the IBL while those exceeding the initial threshold can increase their pensions significantly based on additional contributions. This is illustrated in a chart available for download linked in the video description.

Comparative Examples

• In comparing both cases:

• Doña María's pension calculation yields approximately 1 million 950 thousand pesos at a replacement rate of 65%.

• Don José's similar IBL results in a 2 million 130 thousand pesos pension at a 71% replacement rate due to his additional contribution weeks.

Adjustments Based on Age and Salary Levels

• It's important to note that actual percentages may vary slightly based on specific formulas that account for salary levels; thus:

• If Doña María were aged over 57 years in 2023, her effective replacement rate would drop to 64.21%, resulting in an adjusted pension amount closer to 1 million 926 thousand pesos.

• Similarly, if Don José had reached retirement age within this timeframe, his percentage would adjust downwards to 70.21%, leading to an approximate pension value of 2 million one hundred six thousand two hundred six pesos. These adjustments reflect complex calculations that reduce expected payouts slightly based on various factors like age and salary history.

Conclusion and Further Learning Opportunities

• The key takeaways emphasize three critical components influencing your eventual pension:

• Your average base salary,

• The number of contribution weeks,

• The applicable replacement rate.

• Understanding how these elements interact can help maximize your potential retirement benefits; further detailed discussions on each component will be provided in subsequent videos linked below for deeper insights into pensions and retirement planning strategies. Additionally, viewers are encouraged to engage through comments regarding preferences between public pensions versus private funds and consider personalized consultations for individual cases or claims assistance.