Half of German households own more than 100,000 euros
A recent study based on data from the "Deutsche Bundesbank" has shown that wealth in Germany remains unevenly distributed, but at the same time revealed that even middle-class families possess significant financial reserves. According to the study published by the "Institut der deutschen Wirtschaft (IW)", the average net wealth of German households in 2023 was around 103,100 euros. Those in the top 10% of the population owned more than 777,200 euros.
Wealth is closely linked to a person's age. The average net worth of individuals under 35 years old is around €17,300, while it rises to €241,100 for those aged between 55 and 64, which is the group that recorded the highest level of wealth. This is attributed to the fact that wealth accumulation takes a long time, often extending over years of work. Upon retirement, the gradual use of that wealth begins. Those who are 75 years old or older have an average wealth of €172,500.
The study relied on the survey "Private Households and Their Finances" conducted by the "Deutsche Bundesbank", which included about 4000 households. The net household wealth was assessed, which is the total assets minus liabilities, and the assets included real estate, cash, valuable possessions, vehicles, and business properties. The researchers used the "median" instead of the arithmetic mean, as it reflects the picture more accurately since it is not affected by outliers.
One of the most notable findings is that homeownership has a significant impact on wealth formation. While more than 10% of people under 35 live in homes they own, more than half of those aged 55 to 64 own their homes.
Economist Maximilian Stockhausen from the IW Institute commented that the government could support the building of private wealth by easing the tax burden on salaries, giving workers more room to accumulate wealth.