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Savings rate and years to independence

Your savings rate matters more than your income: it decides both how fast your money grows and how much you need.

CHF / month
CHF / month
CHF
% / year

Before inflation; results are shown in today’s francs.

%

4 % is the classic rule; 3.5 % is safer for a long early retirement.

Your result

Savings rate
60.0%
Years to independence
11.7 years
You save
CHF 6’000 / month
Savings needed
CHF 1’200’000

Your result, explained

You save 60.0% of your income. At that pace you reach CHF 1’200’000 in about 11.7 years, without counting pensions.

Savings rateYears to independence
10.0%47.3 years
20.0%34.3 years
30.0%26.3 years
40.0%20.4 years
50.0%15.7 years
60.0%11.7 years
70.0%8.3 years
Use this in your full plan →

Estimates for planning, not advice. Use at your own risk. Read the full disclaimer

How it is calculated

  1. Savings rate = (net income − spending) ÷ net income.
  2. Target = yearly spending ÷ withdrawal rate.
  3. Years = the time until your savings, growing at the real return and topped up every month, reach the target.

The table shows the same arithmetic for other savings rates, so you can see where the curve flattens. Lower spending works twice: you save more and you need less. More in savings rate and years to freedom.

Context

How markets did in the last 20 years

Real index returns, before inflation and fund costs. Our default for stocks is 8.0% a year; the last two decades were stronger, and they included a 67 % fall in francs.

IndexPeriodCurrencyPer year
S&P 500with dividends2006–2025USD10.9%
MSCI Worldwithout dividends (add about 2 %)Oct 2016–Sep 2026CHF9.4%
Swiss equitieswith dividends2009–2025CHF8.5%
  • S&P 500: Worst year: 2008, -36.8%.
  • MSCI World (CHF): Largest fall in francs: -67.0% between 2000 and 2009.
  • Swiss equities: Since 1900: 6.8% a year, 4.6% after inflation.
  • Why francs earned less: the franc rose against the dollar, so a Swiss investor kept less of the US gains.

Past returns do not predict future returns. Sources: chartrow.com, msci.com, pictet.com. Try these returns in the calculator →

Frequently asked questions

What is a good savings rate?

Any rate you can keep. From zero savings, 20 % means roughly four decades of work, 50 % about two. Each step up shortens the road from both ends.

Should the savings rate use gross or net income?

Net, take-home pay. Pension-fund contributions are already deducted from it and grow separately.

Why are pensions not included here?

This tool shows the pure savings arithmetic. AHV and the pension fund make the real road shorter; the full calculator includes them.

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