Fee differences cost investors 180,000 euros over four decades
A 40-year simulation of the MSCI World index shows that annual fees of 1% reduce final retirement savings by 180,000 euros compared to zero-cost structures. The analysis highlights how small fee variations significantly impact long-term wealth accumulation.
A simulation covering the period from 1986 to 2026 demonstrates the substantial impact of investment costs on retirement savings. Investing 195 euros monthly, comprising 150 euros in personal capital and a 45 euros state subsidy, into the MSCI World Total Return index yields 740,000 euros with zero costs, representing an 8.6% average annual return on personal capital. However, cost structures significantly alter these outcomes. A 0.2% annual fee reduces the final amount to 700,400 euros, a loss of nearly 40,000 euros. A 1% annual fee, which is the legal cap for the standardized 'Standarddepot', reduces the final amount to 561,000 euros, resulting in a loss of 180,000 euros compared to the zero-cost scenario.
Providers such as Trade Republic offer 51 ETFs with no deposit, savings plan, or product fees, executing trades at the Xetra closing auction to avoid bid-ask spreads. Scalable offers a 'Rentenbonus' that refunds fees for specific ETFs, including the Vanguard FTSE Global All Cap. The standardized 'Standarddepot' mandates a mix of risk-averse and risk-seeking funds with automatic de-risking five years before retirement. In contrast, the free AVD allows individual selection of global ETFs, bond funds, and private equity vehicles, though it excludes single stocks, crypto, and leveraged products. The analysis urges investors to choose low-cost providers to avoid the substantial long-term losses associated with higher fee structures.