Pension gap

The Rentenlücke (pension gap) is the difference between the income you want in old age and the statutory pension you can expect.

The calculation:

• Desired income in retirement: ~80% of your last net income (rule of thumb)
• Expected statutory pension: according to your pension information letter (GROSS!)
• Deductions: taxes (~15%), health/long-term care insurance (~11%) = only ~74% of the gross pension as net
• Plus inflation: a €1,800 pension in 25 years = purchasing power of only ~€1,050 today (at 2% inflation)

Typical pension gaps:

• Average earner (€3,500 net): needs ~€2,800/month. Net pension: ~€1,200. Gap: €1,600/month
• High earner (€5,000 net): needs ~€4,000. Net pension: ~€1,500. Gap: €2,500/month

How do you close the gap?

• ETF savings plan: €300/month at a 7% return over 30 years = ~€365,000
• Company pension: take the employer contribution
• Property: living rent-free saves €500–1,500/month
• Retirement savings depot (from 2027): use the state subsidy

Important: the earlier you start, the less you have to save each month. At 25, €200/month is enough. At 45 you already need €600/month for the same result.