Camille Van Vyve
30 Dec 2023
How much should you save per month for an ideal pension?
4,600 Belgians have utilized Easyvest's pension planner to assess their retirement incomes and measure the effort required to achieve their goals. Conclusion: half of them now have to put aside at least €223 each month to retire comfortably. What about you?
Easyvest's pension planner: a wealth of information
If you haven't tried it yet, Easyvest's pension planner is a treasure trove of information about your retirement, right at your fingertips. In just a few clicks, you can:
- Calculate your projected retirement incomes from all sources (legal pension, supplementary pension, pension savings).
- Set a goal for the net monthly retirement income based on your needs.
- Establish an investment plan to achieve this goal and bridge the gap between your projected incomes and your ideal income.
€478 per month to supplement your pension
Since the launch of our simulator a year ago, 4,600 Belgians aged 46 on average have simulated their future pensions and set an "ideal" pension goal. On average, the observed gap between projected incomes and the desired pension income requires a monthly savings effort of €478.
Median effort is €223 per month
While the average effort amounts to €478 per month, the median effort is €223 per month. This means that half of all users who performed a simulation are recommended a higher effort than €223 per month, and the other half a lower amount. The average effort of €478 per month is explained by a minority of higher recommendations: indeed, 30% of users are advised to save €480 per month or more (in cases where the retirement age has already been reached, the amount can exceed several thousand euros per month).
Start early to reduce the effort
Mechanically, the earlier the planning starts, the less effort will be needed to reach your pension goal. This fact is reinforced by the compound interest phenomenon, where reinvested interest delivers returns year after year. Thus, for users under 35 years old, the average savings effort to reach their pension goal is €276 per month.
The calculated effort takes into account market performance
Easyvest's pension planner recommends investment plans in ETFs that expose the saver-investor to the global stock market and eurozone bonds. This form of investment, called "index investing," is extremely efficient as it minimizes costs for the investor while maximizing long-term return prospects. Our regular analyses show that this strategy almost systematically outperforms the active investment strategies suggested by most major Belgian banks.
Invest regularly, without overthinking
The recommendations of Easyvest's pension simulator imply a monthly savings effort, which also helps minimize the impact of volatility on your portfolio. With the automatic fund allocation feature of our app, you can preset the amounts and frequency of your investments, allowing you to invest regularly and worry-free. But a one-time investment is, of course, always possible. Feel free to contact our managers to discuss the plan that best suits your needs!