Merz idea: Is 50 euros a month enough for a 100,000 euro pension?

Chancellor Friedrich Merz recommends that Germans save privately for old age, even with small amounts. A calculation shows when 50 euros a month can actually become a six-figure fortune.

How much money do you have to save each month in order to build up assets in addition to your statutory pension in old age? This question concerns many Germans – and also Chancellor Friedrich Merz. The CDU politician recommends starting to save as early as possible. Already 50 euros per month could therefore be sufficient to for retirement one six-figure additional pension to build.

For many people, however, the crucial question arises: Is that realistic – or just political wishful thinking?

When 50 euros becomes a six-figure amount

Calculations about which the “Frankfurter Rundschau” reports show: In principle, a small monthly investment can grow into a large fortune over many years. The most important thing is: Investment duration and return.

An example calculation with a monthly savings amount of 50 euros and an average, rather conservative return of six percent per year results in the following possible final amounts:

after 20 years: around 22,800 euros
after 25 years: around 34,000 euros
after 30 years: around 49,000 euros
after 35 years: around 69,000 euros
after 40 years: around 95,800 euros
after 45 years: around 131,700 euros

The brand of 100,000 euros will be in This scenario is only achieved after around 41 years. So if you actually only save 50 euros a month, you would have to invest consistently over decades to get to a six-figure fortune.

And: At With a 7% return, the 100,000 euro mark will be reached much earlier than in the 6% calculation. While it takes over 40 years there, the fortune is already here between the 36th and 38th savings year over the 100,000 euro mark.

Important: These are in the invoice Taxes on capital gains not yet taken into accountwhich may reduce actual final wealth later.

Financial experts recommend significantly higher savings rates

Many experts therefore recommend significantly higher reserves. According to Allianz, the rule of thumb is: 10 to 15 percent of net income should be saved for retirement in the long term.

With an example net income of 20,000 euros per year, that would be approximately 166 euros per month – i.e. more than three times the amount that Merz mentioned.