Your Retirement Gap — and How to Close It
Live calculation of your expected state pension, target retirement income, and the monthly savings rate needed to close the gap at 5 % p.a. — for Germany and Austria.
Your inputs
Detailed breakdown
Savings rate by horizon
How does the required monthly savings change depending on when you start? Column 1 shows your situation, the others are comparison scenarios for 30, 40 and 50 year horizons.
| Horizon | Monthly savings | Total contributions | Capital at retirement |
|---|
Wealth growth at your savings rate
Why the state pension alone is not enough
In 1990, the German replacement rate was 55 % of the average net income. Today it is 48 % gross, and calculations project further cuts to 43 % by 2030. The reason: fewer contributors are financing more pensioners — demographic change is structurally weakening the pay-as-you-go system.
In Austria the formal replacement rate is 80 % of the assessment base after 45 contribution years — higher than in Germany, but capped by a lower maximum assessment base. Here too, the real replacement rate falls due to pension adjustments below inflation and longer retirement ages.
The only reliable solution: save privately and let compound interest do the work. €200 per month over 40 years at 5 % return reaches about €305,000 — providing a private supplementary pension of about €1,250 per month for 25 years. Anyone starting at 25 instead of 45 halves the required savings rate for the same end value.
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Frequently asked questions on retirement planning
How is the German statutory pension calculated?
Pension = earnings points × pension value. 1 EP = one year of average income (2026 about €45,358). Pension value 2025: €40.79. Standard pension after 45 years ≈ 48 % of average gross.
How is the Austrian state pension calculated?
ASVG pension = 1.78 % × contribution months × assessment base. After 45 years ≈ 80 % of base. Paid 14 times per year.
What is the retirement gap?
Difference between target retirement income and state pension. It exists because the statutory replacement rate only covers 48 % (DE) or 80 % (AT) — and is trending lower.
How much should my retirement income be?
Rule of thumb: 70–80 % of last gross income is enough, because social contributions and savings rates disappear. At €4,000 gross and 80 % target, Germany leaves a gap of about €1,280 / month.
What return can I realistically assume?
5 % p.a. is a conservative midpoint for global equity ETFs (MSCI World / S&P 500: 5–7 % p.a. real over 50–100 years). Bonds rather 1–2 %.
Why is the savings rate so much lower for a longer horizon?
Compound interest. €100/month × 50 years × 5 % ≈ €265,000. 30 years ≈ €83,000. 20 years ≈ €41,000. Starting early cuts your required rate to a third.
Does the calculator account for inflation?
No, all values are nominal. At 2.5 % inflation, purchasing power halves every 28 years. Use the Real Return Calculator for inflation scenarios.
Are the calculations binding?
No. Simplified estimate based on current formulas. Real pensions depend on career path, part-time, child care periods and reforms. Not investment advice.