Varied parameter
Saving rate
5% → 25%
Saving Rate Comparison
Software engineer in Hamburg · Starting late
This page compares financial outcomes for a Software engineer living in Hamburg, Germany, following the Starting late life scenario.
A financial life that begins later, leaving fewer years for compounding to work. Success relies on disciplined saving, steady income, and sustained focus over a shorter horizon.
Hamburg has a strong professional services and logistics economy, with above-average costs and solid income potential.
The comparison focuses on how changing the Saving rate influences long-term results, while all other assumptions remain constant.
Simulation Overview
Base scenario assumptions
- The simulation starts at age 40 and runs until age 65.
- The initial annual labor income is €31,080.
- Labor income grows annually at an average rate of 4%.
- A labor income tax rate of 35% is applied to gross earnings.
- The saving rate varies between 5% and 25%.
- Minimum annual living expenses are €18,300.
- 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 2%.
- The simulation includes stochastic life events such as unemployment, 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.
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Scenario Comparison
Results are shown as a realistic range. P10 represents a pessimistic outcome, while P90 represents an optimistic outcome. Most simulations fall between these two values.
| Scenario | Median Net Worth | P10 Net Worth | P90 Net Worth | FI Probability | FI Median Age |
|---|---|---|---|---|---|
| 5% | 54,046 | 31,474 | 83,876 | 0% | — |
| 10% | 124,364 | 83,583 | 181,449 | 0% | — |
| 15% | 190,722 | 129,195 | 271,725 | 0% | 64 |
| 20% | 254,305 | 174,290 | 358,712 | 1% | 64 |
| 25% | 310,977 | 214,909 | 434,748 | 8% | 64 |
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
