Current for 2026•As of: July 2026

Pension Gap Calculator find your retirement savings gap.

Calculate your retirement savings gap and how much you need to save each month.

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Current income

€
1,000 €10,000 €
%
50 %100 %

Expected pension

€
500 €3,500 €
€
0 €2,000 €

Time period & inflation

years
1 years45 years
%
0.0 %5.0 %

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.

Monthly pension gap

€1,000.00

Inflation-adjusted: €1,640.61

Desired pension

€2,400.00

Available pension

€1,400.00

Gap (real)

€1,640.61

Pension comparison

Desired pension€2,400.00
Available pension€1,400.00

Capital needed

For monthly supplementary pension€1,640.61
Withdrawal rate (4% p.a.)4% rule
Target capital€492,181.80

Monthly savings rate

Depending on the expected return, you need the following monthly savings rate:

Aggressive (7% p.a.)

ETFs, equities

€607.58
Moderate (5% p.a.)

Mixed funds

€826.49
Conservative (3% p.a.)

Bonds, fixed deposits

€1,103.53

Calculation based on:

  • 4% rule for sustainable capital withdrawal (Trinity Study)
  • Inflation adjustment until retirement
  • Savings plan formula with monthly contributions
  • Return before taxes and costs

Important note

These calculations are for non-binding information only and do not replace professional tax advice. All information without guarantee. Learn more

Sources & calculation basis

Our calculations are based on the following official sources (as of: July 2026):

Related guides

Retirement PlanningClosing the Pension Gap

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

Example: €500 pension gap with 25 years to save

Example: €500 pension gap with 25 years to save
ItemAmount
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

Factors affecting your savings rate

  1. Time until retirement: The earlier you start, the less you need to save each month. Compound interest makes the difference.
  2. Expected return: Higher return = lower savings rate, but also higher risk. Diversification is key.
  3. Inflation: Purchasing power falls every year. Your savings goal must account for inflation until you retire.
  4. Desired standard of living: The higher your expectations, the more you need to save. 80% of your net income is a common benchmark.

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
At 25, €200/month is enough to reach €300,000 in capital (7% return). At 45, you would need €800.
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

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.

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.

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.

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.

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.

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