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Camille Van Vyve

Camille Van Vyve

12 Dec 2024
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A million euros in savings, an accessible dream?

Easyvest has published the results of its major 2024 survey on "Money and Happiness." The findings reveal that the median net wealth of Belgian households is €440.000, while their ideal level of wealth is €1.000.000. At what pace can you save what’s missing to reach financial happiness? We’ve run the numbers across various scenarios.

Financial happiness is a million euros

€1.000.000: the price of happiness for belgian households

In 2024, Belgian households set the "price of happiness" at a median value of €1.000.000 net wealth, including real estate. While this is a symbolic and substantial amount, it is not unattainable considering Belgians are among the wealthiest in Europe. This is largely because many Belgian households own their homes, making real estate their preferred investment.

€560.000 to reach financial happiness

With a median net wealth of €440.000, households need to save €560.000 to achieve financial happiness. Is this realistic? Under what circumstances? Of course, since these are median figures, individual situations vary significantly. For this reason, we also consider different starting capital assumptions.

 
         

4%: a realistic return for real estate

Let’s assume the majority of Belgians’ current capital is invested in real estate, which offers a reasonable annual net return of approximately 4%. Future savings are also assumed to yield 4%, whether invested in real estate or a diversified portfolio of stocks and bonds with a moderate-defensive profile.

How much should you save to reach €1.000.000?

Depending on your age and current wealth level, how fast can you become a millionaire and approach financial happiness? This table helps guide your effort:

 Taking into account annual inflation of 2%, to reach 1M€ of capital, I will have to invest each month at 4%:
My current level of capital (invested with a 4% return)During 10 yearsDuring 20 yearsDuring 30 years
€100.000€6.600€2.900€1.700
€200.000€5.700€2.400€1.300
€300.000€4.800€1.900€950
€400.000€3.900€1.400€600
€500.000€3.000€900€250
€600.000€2.100€400/
€700.000€1.200//
€800.000€250//
€900.000///

The power of compounding

This table illustrates how wealth grows efficiently at an annual net return of 4%, driven by the compounding effect. By reinvesting gains year after year, a "snowball" effect emerges, intensifying significantly over time. This is why the effort over 10 years isn’t three times harder than over 30 years—it’s significantly less. Similarly, once you reach a certain wealth level, no further savings may be needed, as the annual returns alone can help achieve €1.000.000 in 10, 20, or 30 years.

2% return: a very different story

Now imagine your current capital and future savings are invested at a 2% annual return, which matches inflation. With returns and inflation canceling each other out, you lose the benefits of compounding. In this scenario, time does not work in your favor. Over 30 years, you would need to save three times as much as over 10 years, and over 20 years, twice as much. The amounts required are also significantly higher, and no scenario allows the return alone to bridge the gap to €1.000.000.

 Taking into account annual inflation of 2%, to reach 1M€ of capital, I will have to invest each month at 2%:
My current level of capital (invested with a 2% return)During 10 yearsDuring 20 yearsDuring 30 years
€100.000€7.500€3.750€2.500
€200.000€6.800€3.400€2.250
€300.000€5.900€2.950€1.950
€400.000€5.000€2.500€1.650
€500.000€4.200€2.100€1.400
€600.000€3.400€1.700€1.150
€700.000€2.500€1.250€850
€800.000€1.700€850€575
€900.000€850€425€275

7%: realistic long-term returns on stocks

Finally, let’s consider an investor looking to diversify beyond real estate. While they might already own property yielding 4%, they aim for higher returns by taking on more risk. With a long-term return of around 7%, global equities are an essential choice for such profiles. Achieving €1.000.000 in this scenario becomes significantly easier:

 Taking into account annual inflation of 2%, to reach 1M€ of capital, I will have to invest each month at 7%:
My current level of capital (invested with a 4% return)During 10 yearsDuring 20 yearsDuring 30 years
€100.000€5.600€2.100€1.000
€200.000€4.800€1.750€800
€300.000€4.100€1.400€800
€400.000€3.300€1.000€350
€500.000€2.500€650€150
€600.000€1.800€300€/
€700.000€1.000//
€800.000€200//
€900.000///

Start investing as early as possible

To reach financial happiness—€1.000.000 or more—it’s essential to invest consistently throughout adulthood and aim for returns that outpace inflation. While real estate is a common choice, its associated costs often reduce its profitability. Whenever possible, investing part of your income in globally diversified ETFs can provide more effective diversification without the hassle of managing property and with better long-term returns. With Easyvest, you’re assured of the best ETF selection and can set up recurring investments at amounts that suit you. Interested? Run a simulation on our website and book an appointment with one of our wealth managers today.

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Easyvest is a brand of Easyvest NV/SA (No. 0631.809.696), authorized and regulated by the Belgian Authority for Financial Services and Markets (FSMA) as a portfolio management company and as a broker in insurances, with registered office at Avenue Louise 475, 1050 Brussels, Belgium. Easyvest Pension Fund (abbreviated to Easyvest OFP) is a professional pension organisation approved by the FSMA (No. 1011.041.490) and domiciled at the same address. Copyright 2025 EASYVEST NV/SA. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in loss.