The two rules we'll use
The 70% rule. A common planning target is to replace ~70% of your pre-retirement gross income. You commute less, save less for retirement, and have usually paid off the mortgage — so 70% of working income typically maintains your lifestyle.
The 4% rule. Once you've stopped working, you can withdraw ~4% of your invested pot per year with a high chance of it lasting 30+ years. Flipped around, it gives you a simple capital target: annual gap × 25 = capital needed at 67.
Monthly contribution estimates below assume a 6% real annual return from a diversified global equity ETF, contributing every month until 67. All figures are 2024–2025 public estimates, rounded for clarity — planning numbers, not personalised advice.
Capital target = (target income − state pension) × 25. That's the formula behind every country table below.
🇩🇪 Germany
- Average gross salary: ~€51,000/year
- Target retirement income (70%): ~€35,700/year
- Expected state pension: ~€24,500 (~48% replacement, gesetzliche Rente)/year
- Annual gap: ~€11,200
- Capital needed at 67 (gap × 25): ~€280,000
| Start age | Years invested | Monthly contribution |
|---|---|---|
| 30 | 37 | ~€175 |
| 40 | 27 | ~€345 |
| 50 | 17 | ~€790 |
Every decade you wait roughly doubles the monthly cost.
🇬🇧 United Kingdom
- Average gross salary: ~£37,500/year
- Target retirement income (70%): ~£26,250/year
- Expected state pension: ~£11,500 (full new State Pension)/year
- Annual gap: ~£14,750
- Capital needed at 67 (gap × 25): ~£370,000
| Start age | Years invested | Monthly contribution |
|---|---|---|
| 30 | 37 | ~£230 |
| 40 | 27 | ~£455 |
| 50 | 17 | ~£1,045 |
A Stocks & Shares ISA (£20k/year) lets the whole pot grow and be withdrawn tax-free.
🇺🇸 United States
- Average gross salary: ~$66,000/year
- Target retirement income (70%): ~$46,200/year
- Expected state pension: ~$22,800 (~$1,900/mo average Social Security at FRA)/year
- Annual gap: ~$23,400
- Capital needed at 67 (gap × 25): ~$585,000
| Start age | Years invested | Monthly contribution |
|---|---|---|
| 30 | 37 | ~$365 |
| 40 | 27 | ~$720 |
| 50 | 17 | ~$1,655 |
A Roth IRA or 401(k) employer match makes a serious dent if you start early.
🇫🇷 France
- Average gross salary: ~€41,000/year
- Target retirement income (70%): ~€28,700/year
- Expected state pension: ~€20,500 (~50% replacement, régime général + complémentaire)/year
- Annual gap: ~€8,200
- Capital needed at 67 (gap × 25): ~€205,000
| Start age | Years invested | Monthly contribution |
|---|---|---|
| 30 | 37 | ~€130 |
| 40 | 27 | ~€255 |
| 50 | 17 | ~€580 |
A PEA wrapper makes long-term equity ETF investing very tax-efficient in France.
🇳🇱 Netherlands
- Average gross salary: ~€45,000/year
- Target retirement income (70%): ~€31,500/year
- Expected state pension: ~€16,500 (AOW, single — most workers also have a 2nd-pillar pension)/year
- Annual gap: ~€15,000
- Capital needed at 67 (gap × 25): ~€375,000
| Start age | Years invested | Monthly contribution |
|---|---|---|
| 30 | 37 | ~€235 |
| 40 | 27 | ~€465 |
| 50 | 17 | ~€1,060 |
A solid second-pillar workplace pension reduces this number — but few employees know exactly what theirs will pay.
Side-by-side comparison
| Country | Avg salary | Target (70%) | State pension | Annual gap | Capital at 67 |
|---|---|---|---|---|---|
| 🇩🇪 Germany | €51,000 | €35,700 | €24,500 | €11,200 | €280,000 |
| 🇬🇧 United Kingdom | £37,500 | £26,250 | £11,500 | £14,750 | £370,000 |
| 🇺🇸 United States | $66,000 | $46,200 | $22,800 | $23,400 | $585,000 |
| 🇫🇷 France | €41,000 | €28,700 | €20,500 | €8,200 | €205,000 |
| 🇳🇱 Netherlands | €45,000 | €31,500 | €16,500 | €15,000 | €375,000 |
What to actually do with this
The state will not maintain your lifestyle. In every country above, the average earner faces a five- or six-figure capital gap by 67. Closing it comes down to three things:
- Start now. A 30-year-old contributes roughly a third of what a 50-year-old needs each month for the same final pot.
- Keep it boring and diversified. A globally diversified equity ETF — with a slice in a very low-risk cash account for the spending you'll need in the first 2–3 years of retirement — does most of the work.
- Automate the monthly contribution. Set it once and forget it. The decision you make once a year matters more than the trade you make once a month.
Faith-aligned investor? The same playbook works with Shariah-screened global equity ETFs and very low-risk cash accounts instead of interest-bearing fixed-income products.
Track every holding across every broker in PieFolio AI, get an instant Health score, and an AI-written analysis of your portfolio — so you actually know whether what you own will get you there.