Pension & PAC Simulator
Project your final retirement or ETF savings plan capital
TL;DR — Key Points
- ▸Compound interest makes even small monthly contributions grow significantly over 20–30 years.
- ▸Italian supplementary pension funds offer a tax deduction up to €5,164/year on contributions.
- ▸The actual tax saving depends on your IRPEF bracket: 23%, 35%, or 43%.
- ▸ETF savings plans (PAC) don't offer the same deduction but are more flexible.
- ▸Use the simulator below to compare outcomes with and without the pension tax benefit.
Whether you're building a supplementary pension fund or a regular ETF savings plan (PAC), the power of compound interest means that time in the market matters more than the amount you invest. This simulator lets you project your final capital, total gains, and — for Italian investors — the additional benefit of the IRPEF tax deduction on pension contributions.
How Does Compound Interest Work for Long-Term Savings?
When your investment returns are reinvested, each year's growth is applied not just to your contributions but to the accumulated gains as well. A €200/month contribution at 5% annual return over 30 years generates over €166,000 — more than double the €72,000 you actually invested. The longer the time horizon, the more powerful this effect becomes.
What Is the Italian Pension Fund Tax Deduction?
Italian supplementary pension funds (fondi pensione complementari) allow you to deduct contributions up to €5,164 per year from your taxable income. This means a real annual tax saving of €1,188 at the 23% bracket, €1,807 at 35%, or €2,221 at 43%. Over 20–30 years, the cumulative tax benefit can add tens of thousands of euros to your effective return.
Pension Fund vs ETF PAC: What's the Difference?
Both allow systematic investing, but they differ in key ways. Pension funds offer the IRPEF deduction and are taxed at a reduced rate (9–15%) at withdrawal, but lock up your capital until retirement. ETF PAC plans are fully flexible — you can redeem anytime — but contributions are not deductible and gains are taxed at standard capital gains rates (26% in Italy). The right choice depends on your time horizon and liquidity needs.
Simulate Your Retirement or PAC Capital
Projected results
Final capital
€92,408
Total contributed
€48,000
Investment gain
€44,408
Italian supplementary pension funds allow deducting contributions up to €5,164/year from taxable income. The actual tax saving depends on your marginal tax bracket.
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