Savings Goal Projection Calculator

The simulator projects your savings over 40 years by applying compound interest monthly:

• Compound capital: Each month, the interest earned is reinvested and in turn generates its own interest. This is the snowball effect of compound interest.
• Regular contributions: The monthly contribution is added to the capital each month, immediately benefiting from compounding.
• Goal date: The simulator identifies the year in which your capital first exceeds your target.

If the goal is not reached within 40 years, the simulator calculates the shortfall. You can adjust your parameters (contribution, return rate) to find the combination that hits your target.

Reaching a financial goal is not a matter of chance: it is the result of a structured approach that combines a clear definition of the target, calculating the path to get there, and regular adjustments along the way. Here are the four key steps of this proven method used by wealth management professionals.

Step 1: Define the goal in amount and time horizon

A vague goal produces vague results. The first step is to precisely quantify what you are aiming for and by when. "Saving for retirement" is not a goal: "building a capital of 300,000 euros in 25 years to generate a retirement supplement of 1,000 euros per month" is one. To quantify your goal, start from the concrete final need. For a property deposit, it is generally 10 to 20% of the property price plus notary fees. For children's education, budget between 5,000 and 15,000 euros per year for 3 to 5 years depending on the program. For a retirement supplement, calculate the gap between your estimated pension (check info-retraite.fr) and the desired standard of living, then determine the capital needed to generate that annuity. Don't forget inflation: a goal of 200,000 euros in 20 years corresponds in current purchasing power to about 135,000 euros (with 2% annual inflation). Therefore, increase your target by 2% per year to maintain your real purchasing power.

Step 2: Calculate the required contribution based on expected return

Once the goal and time horizon are defined, the constant annuity formula (the one used by our simulator) gives you the required monthly contribution. The key variable is the expected return, which depends on the allocation you will implement. A conservative allocation (100% euro fund) offers a return of 2 to 3% per year, a balanced allocation (50% UC / 50% euro fund) targets 3.5 to 5%, and a dynamic allocation (80% UC / 20% euro fund) can aim for 5 to 7% annualized over the long term. The higher the return, the lower the required monthly contribution, but the higher the risk. The key is to find the right balance between the savings effort (the contribution) and the risk you are willing to take (the return). A good reflex is to calculate two scenarios: a conservative scenario (low return, high contribution) and an optimistic scenario (high return, low contribution). If even the conservative scenario is feasible with your budget, your plan is solid.

Step 3: Adjust the risk/safety allocation based on time horizon

The investment horizon is the determining factor of your allocation between secure investments (euro fund) and dynamic investments (unit-linked funds). The rule is simple: the shorter the horizon, the more you should secure. The longer the horizon, the more volatility you can accept in exchange for higher returns.

• Horizon under 3 years: Favor the euro fund heavily (80 to 100%). At such a short time frame, a market downturn would not have time to recover before your goal deadline. The priority is not return but capital preservation.
• Horizon of 3 to 8 years: A balanced mix is appropriate (40 to 60% UC). This duration allows absorbing a market correction while benefiting from the growth potential of UC. Favor low-volatility UC: diversified funds, flexible funds, SCPI (paper real estate).
• Horizon over 8 years: A UC-dominant allocation is relevant (60 to 80% UC). Over this horizon, statistics show that equity markets have always generated a positive return, even including the most severe crises. This is the playground for global equity ETFs, sector funds, and more volatile but higher-potential investments.

An essential point: the allocation is not fixed. As you approach your goal deadline, gradually reduce the UC share in favor of the euro fund. This technique, called "glide path" or progressive desensitization, protects you against a market crash that could occur at the worst time, just before you need the funds.

Step 4: Reassess every year

A savings plan is not a document you draft once and forget in a drawer. It must be reassessed every year to incorporate changes in your personal situation (income change, birth, inheritance, project change), the actual performance of your investments (above or below projections), and the evolution of the goal itself (revised amount, timeline, or nature of the project). Take one hour in January to review your plan: compare actual capital to projected capital, adjust the contribution if necessary, verify that the allocation is still consistent with the remaining horizon. This annual check-in is the best investment you can make: it transforms a vague project into a concrete and controlled trajectory.

Each life project has its own specifics in terms of target amount, time horizon, and savings strategy. Here are the five most common goals encountered among French savers, with a reference framework for each to structure your approach.

Property deposit: 3 to 7-year horizon, conservative strategy

Buying a property is often the first major savings goal. Banks generally require a deposit of 10 to 20% of the property price, plus notary fees (about 7 to 8% for existing properties, 2 to 3% for new builds). For a property at 300,000 euros, the required deposit is between 50,000 and 80,000 euros. The horizon is relatively short (3 to 7 years), which requires a conservative strategy. Favor the euro fund (70 to 100%) and avoid volatile UC: a 20% market drop in the year of your purchase could delay your project by several years. Life insurance is a good vehicle for this goal as it offers a higher return than the Livret A on the euro fund, and partial withdrawals are possible at any time. If the horizon exceeds 5 years, a moderate UC share (20 to 30%) can improve returns without too much risk.

Children's education: 10 to 18-year horizon, balanced profile

Funding children's higher education is a long-horizon goal, which allows adopting a balanced profile with a significant UC share. The average cost of higher education in France varies enormously: from 500 euros per year at a public university to 10,000 to 15,000 euros per year at a business or engineering school, and up to 30,000 to 50,000 euros per year at the most prestigious foreign universities. Budgeting 10,000 euros per year for 5 years, the target is 50,000 euros. By opening a life insurance policy at birth and contributing 150 euros per month at a 4% average return, you get about 45,000 euros after 18 years, including 12,600 euros in interest. The allocation can be dynamic for the first 10 years (60 to 70% UC) then progressively secured as the deadline approaches. Another advantage: the contract opened in the child's name will have more than 8 years of tax seniority at age 18, offering reduced taxation on withdrawals.

Retirement: 20 to 35-year horizon, dynamic profile

Retirement preparation is the quintessential long-term savings goal. With a 20 to 35-year horizon, it is the ideal situation to maximize exposure to UC and fully benefit from the compound interest effect. To determine the required capital, estimate the monthly income supplement you will need (the difference between your pension and your target standard of living), then apply the sustainable withdrawal rate rule: a capital can generate approximately 3 to 4% of annual income sustainably (the 4% rule). Thus, a supplement of 1,000 euros per month (12,000 euros per year) requires a capital of approximately 300,000 to 400,000 euros. With 300 euros per month at a 5% annualized return for 30 years, you accumulate about 250,000 euros. Adding an initial capital of 10,000 euros, you surpass 290,000 euros. Combine life insurance and PER (if your marginal tax rate justifies it) to optimize taxation. The allocation can start at 80% UC and gradually reduce to 40% in the last 10 years before retirement.

Life projects: world trip, career change, sabbatical year

"Non-conventional" life projects are increasingly common: world trip (typical budget of 15,000 to 30,000 euros for one year), career change (plan for 12 to 24 months of current expenses, i.e. 30,000 to 70,000 euros), business creation (variable initial capital), sabbatical year (12 months of expenses). The horizon is generally medium (3 to 10 years) and the date may be flexible, which offers a bit more room than a fixed-date goal. Life insurance is the ideal vehicle for these projects: it offers the withdrawal flexibility needed and no minimum holding period constraint (unlike the PER). Adopt a moderately dynamic allocation (40 to 50% UC) and progressively secure as the project materializes. Keep a margin of 10 to 15% above the strictly necessary amount to absorb contingencies (inflation, unexpected costs, last-minute market fluctuations).

Typical target amounts by goal

As a guide, here are the most common ranges encountered by wealth management professionals:

• Property deposit: 30,000 to 80,000 euros depending on the geographic area (higher in the Paris region and major cities).
• Higher education: 20,000 to 80,000 euros depending on the duration and type of institution.
• Retirement supplement: 200,000 to 500,000 euros to generate a supplement of 500 to 1,500 euros per month.
• World trip: 15,000 to 40,000 euros depending on duration and destinations.
• Career change: 30,000 to 70,000 euros to cover the transition period and any training costs.

These amounts are benchmarks, not standards. Each situation is unique and deserves a personalized calculation based on your expenses, location, and the exact nature of your project. Use the simulator above to test different scenarios and find the contribution/return/duration combination that fits your reality.