Pension Gap Calculator
Calculate your retirement savings gap and how much you need to save each month.
Calculated in your browser – your inputs are not transmitted and are kept on this device only if you choose
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Your desired pension: €2,400 a month (in today's prices).
Gross amount from your pension statement – or scan it. The calculator deducts health and long-term care insurance.
More details25 years until retirement · inflation 2%
Children
Your pension gap
per month, today
€1,172.90
€1,172.90You would like €2,400.00 a month; €1,227.10 is expected (statutory pension after health and care insurance plus private provision). In 25 years the gap equals €1,924.27 after inflation. To close it, save €969.39 a month at a 5% return.
Pension per month
- Statutory pension, gross
- €1,400.00
- Health and long-term care insurance
- − €172.90
- Statutory pension, netbefore income tax – whether any is due depends on the pension start year and other income
- €1,227.10
Capital needed
- Gap at retirement (inflation-adjusted)
- €1,924.27
- Withdrawal rate (4% p.a.)
- 4% rule
- Target capital
- €577,280.03
Monthly savings rate
- Aggressive (7% p.a.)ETFs, equities
- €712.63
- Moderate (5% p.a.)Mixed funds
- €969.39
- Conservative (3% p.a.)Bonds, fixed deposits
- €1,294.33
What you can do
Don't know your statutory pension yet?
Invest €969.39 a month
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How this was calculated
What is the pension gap?
The pension gap is the difference between your desired standard of living in retirement and your expected pension. You should close this gap through private provision.
- 4% rule for sustainable capital withdrawal (Trinity Study)
- Inflation adjustment until retirement
- Savings plan formula with monthly contributions
- Return before taxes and costs
Understanding and closing the pension gap
The pension gap is one of the biggest financial risks to your retirement. Germany's statutory pension replaces on average only around 48% of your last gross income - and the trend is downward.
To maintain your standard of living, you should start private retirement savings early. The more time you have, the stronger the compound interest effect works in your favour.
Ways to close the pension gap
- ETF savings plan
- Broadly diversified equity ETFs offer the highest long-term return at manageable risk.
- Riester pension
- State subsidies and tax benefits, especially attractive for families with children.
- Company pension scheme
- Employer contributions plus tax/social security savings often make it very worthwhile.
- Real estate
- Living rent-free in old age significantly reduces the pension you need.
Example calculation: closing the pension gap
Factors affecting your savings rate
- 1Time until retirementThe earlier you start, the less you need to save each month. Compound interest makes the difference.
- 2Expected returnHigher return = lower savings rate, but also higher risk. Diversification is key.
- 3InflationPurchasing power falls every year. Your savings goal must account for inflation until you retire.
- 4Desired standard of livingThe higher your expectations, the more you need to save. 80% of your net income is a common benchmark.
- Monthly pension gap (today)
- €500.00
- Inflation (2% p.a., 25 years)
- x 1.64
- Pension gap, inflation-adjusted
- €820.30
- Capital needed (4% rule)
- €246,090.90
- Monthly savings rate (5% return)
- €413.24
Strategies for your retirement savings
The best strategy depends on your personal situation. As a rule of thumb: the more diversified, the better. Don't put all your eggs in one basket.
Practical tips
- Start early
- To reach €300,000 in capital by 67 (7% return), around €100/month is enough from age 25. From 45, you would need almost €500.
- Automate it
- Set up a standing order. What you don't see, you won't miss.
- Minimise costs
- ETFs instead of active funds. 1% less cost p.a. = 25% more wealth after 30 years.
- Review regularly
- Check your annual pension statement every year and adjust your savings rate.
Frequently asked questions about the pension gap
Key facts on the retirement savings gap and private pension planning
What is the pension gap?
The pension gap (also called the retirement savings gap) is the difference between your desired standard of living in retirement and the pension you can actually expect. It shows how much monthly income you will be missing in retirement.
What percentage of my net income do I need in retirement?
Experts recommend 70-80% of your last net income. Some costs fall away in retirement (commuting, work clothing), but health costs often rise. For a worry-free retirement, many people plan with 80% of their current net income.
What is the 4% rule?
The 4% rule (Trinity Study) states that you can withdraw 4% of your assets each year without depleting them. For a €300 monthly supplementary pension, you would need €300 x 12 / 0.04 = €90,000 in capital.
What return is realistic?
Historically, broadly diversified ETFs (e.g. MSCI World) have achieved 7-8% p.a. before inflation. Conservatively, you should calculate with 5%. For bonds and fixed deposits, 2-4% is currently realistic.
How do I account for inflation?
Our calculator accounts for inflation automatically. A €500 gap today corresponds to about €820 in purchasing power after 25 years at 2% inflation. Your savings goal must therefore be higher than today's gap.