Capital Requirement: How much wealth do you need? for Expats in Germany
This tool helps you see how much savings you need for retirement. It calculates the money you must have to get the monthly payout you want.
Amount you want to withdraw monthly from your capital in addition to your pension.
Guidance: Average life expectancy in Germany is around 81 years.
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2.0 %
Required Capital at Retirement Start
0 €
Monthly Withdrawal (Start):0 €
Total Payouts (Nominal):0 €
Total Payout (incl. Inflation):0 €
Of which inflation-related*:0 €
*Accounts for the annual increase in withdrawals to keep purchasing power constant over the entire period.
How the calculation works:
1. Withdrawal Duration: This value determines for how many years you can withdraw money from your capital. Since we don't know how long we live, it's safer to plan for 20 to 30 years.
2. Inflation is always there: Prices will continue to rise during your retirement. The calculator assumes you'll increase your withdrawal each year so that you can still afford the same amount of groceries and rent.
3. Returns on Capital: While you are withdrawing money, the rest of your capital is still invested and earning interest. This reduces the total capital you need to save initially.
4. Required Capital: The result is the exact amount you should have in your account on the first day of your retirement to achieve your withdrawal goal including all future costs.
Plan for a safe future for Expats in Germany
Many people don't know how much money they need for a good life in retirement. Two things are very important:
Living Longer: People live longer today. Your savings might need to last 20, 30, or even 40 years.
Inflation: Prices go up every year. If you need 1,000 euros today, you will need about 1,485 euros in 20 years to buy the same things.
If you invest in ETFs, your money keeps working for you even after you retire. This means you need to save less at the start because you get more interest.
Requirements for Expats
Valid German Address (Anmeldung)
German Bank Account (IBAN)
German Tax ID
Frequently Asked Questions
How is the capital requirement calculated?
The calculator determines the present value of a dynamic pension. It takes into account that withdrawals increase annually by the inflation rate, while the capital not yet withdrawn continues to earn interest at the selected rate.
Should I invest all my money safely at the start of retirement?
Not necessarily. Since the retirement phase often lasts decades, it makes sense to keep part of the capital invested in high-yield assets (e.g., in ETFs). Only the money for the next 2-5 years should be absolutely fluctuation-free.
What happens if I live longer than planned?
That is the so-called "longevity risk". Anyone who wants absolute security should choose a lifelong pension insurance (net policy). A withdrawal plan from a portfolio is more flexible but carries the risk that the money is used up prematurely.
How high is the average life expectancy?
Statistically, 67-year-old men in Germany live on average another 18 years, women approx. 21 years. Since these are only average values, many plan until the age of 90 or 95 as a precaution.
What role does inflation really play?
Inflation is the biggest enemy of your purchasing power. Without compensation, a constant withdrawal over 20 years would lose value bigly. Our calculator therefore shows you how much capital you need to adjust the withdrawal to inflation every year.
Are withdrawals tax-free?
Withdrawals from private assets are subject to withholding tax (on capital gains/interest). Pension insurance often enjoys the half-income method or taxation of the yield component. The calculator determines the gross capital requirement before taxes.
Legal Note: This calculator is for non-binding information and orientation. It does not replace individual advice. The calculations are based on standard financial mathematical formulas. Daniel Hüsken accepts no liability for the accuracy of the results.
Plan capital cleverly?
Let's calculate together how much you need to save monthly to safely cover your capital needs in old age – high-yield on an ETF basis.
