Removing the correction factor for the self-employed: how big is the impact on pensions?

Context: In order to boost self-employed pensions, the federal government abolished the correction factor two years ago.

• Until 2021, only 69 percent of a self-employed person’s annual income is counted toward a pension. This correction factor was introduced in the 1980s to take into account the lower contribution of the self-employed to Social Security compared to employees.
• Because social contributions are now approx