Overview

• At a 5% annual return, €100,000 yields about €5,000 before taxes, making growth noticeably productive.
• With broadly diversified equities returning around 7% over the long term, the balance can roughly double each decade to about €200,000, €400,000 and €800,000 over 10, 20 and 30 years.
• After taxes and possible levies, sustainable withdrawals from 5–7% returns amount to roughly €3,600–€5,040 per year, which typically falls short of annual living costs.
• Saving €500 per month can reach €100,000 in about 11–12 years at a 7% return, while €1,000 per month can shorten the path to roughly 6–7 years.
• Experts urge reinvesting gains via low-cost, diversified ETFs and avoiding frequent trades, noting €100,000 can serve as a safety buffer above average German income and is a useful target by the mid-30s to age 40.