Saving Rate Comparison
Retail worker in Romania
Simulation Overview
Base scenario assumptions
- The simulation starts at age 30 and runs until age 65.
- The initial annual income is €6,300.
- Income grows annually at an average rate of 2%.
- An income tax rate of 10% is applied to gross income.
- The saving rate varies between 5% and 25%.
- Minimum annual living expenses are €9,000.
- Savings are invested with stochastic annual returns.
- The average annual return is 5%, with year-to-year variability.
- All values are expressed in real terms, assuming average annual inflation of 3%.
- The simulation includes stochastic life events such as unemployment, health issue, and health issue.
- These events may temporarily affect income, expenses, or net worth.
- Financial independence is defined as having net worth equal to 25 times annual expenses.
- Bankruptcy is triggered if net worth remains below €0 for 2 consecutive years.
Scenario Comparison
Results are shown as a realistic range. P10 represents a pessimistic outcome, while P90 represents an optimistic outcome.
| Scenario | Median Net Worth | P10 Net Worth | P90 Net Worth | FI Probability | FI Median Age |
|---|---|---|---|---|---|
| 5% | 31,461.945 | 20,219.896 | 51,760.55 | 0% | None |
| 10% | 62,923.89 | 40,439.791000000005 | 103,521.1 | 0% | 64 |
| 15% | 94,385.83 | 60,659.687 | 155,281.641 | 2% | 63 |
| 20% | 125,847.775 | 80,879.583 | 207,042.191 | 7% | 63 |
| 25% | 157,309.72 | 101,099.47 | 258,802.74 | 18% | 62 |
How Your Financial Life Evolves
These charts show how each scenario affects long-term outcomes, including expected wealth, downside risk, and the likelihood of achieving financial independence.
Net Worth Median
Net Worth Range
Fi Probability
Fi Median Age
