As a newcomer to the profession, your biggest advantage at AVD is time.
The compound interest effect
Someone who starts at age 22, contributes €75 per month, and achieves an average return of 6%, will have saved over €250,000 by age 67. Someone who starts at age 32—despite the same contributions—will only accumulate around €140,000.
The entry-level bonus
Anyone who opens an AVD (German savings and investment account) before their 25th birthday receives a one-time bonus of €200 from the government. This amount grows to over €2,000 over 40+ years at a 6% return.
Affordable minimum contributions
You can open an AVD account for as little as €10 per month. So you don’t have to wait for a high salary.
flexibility
The contributions can be adjusted or suspended at any time — without loss of contract.
Conclusion
Every year you wait to start costs you, on average, more than €10,000 in final assets. Start now.