Germans Stay Rich with New Records in Wealth Expected in 2024
Households in Germany are experiencing unprecedented wealth levels.
Got some big bucks? You're not alone! German households are living it up and have never been wealthier, thanks to DZ Bank's prediction of new record highs by 2024.
With a collective wealth of 9.9 trillion euros this year, Germans are sitting pretty, and it's expected to rise to 10.3 trillion euros by 2026. But don't get too overexcited, the growth rate is set to slow as the savings rate drops, and more cash gets invested in real estate. And let's face it, those stock market gains from 2023 and 2024 are probably not making a repeat appearance any time soon.
The Wealth Gap: Rich Getting Richer, Poor Getting...Well, Still Poor
The vast majority of Germany's wealth is concentrated among the richest - around four million households that happen to be part of the wealthiest ten percent. These top dogs are achieving faster wealth growth due to investing heavily in stocks, bonds, and funds, unlike many other poorer households.
On the other hand, about 20 million households (around 8% of wealth) are struggling to keep up, with little to show for. Cash and bank deposits make up a significant portion of their wealth, undoubtedly affecting their ability to grow their fortune.
So, grab your wallet and feel like the king or queen of Germany! But keep in mind that wealth distribution remains unequal, with the wealth gap between rich and poor only seeming to widen.
Factors affecting wealth accumulation over the period from 2022-2026 include a combination of macroeconomic, financial, and policy elements. Inflation, interest rates, investment, asset prices, energy prices, currency changes, government policies, taxes, employment, and economic growth all play their part.
Sources: ntv.de, ses/dpa
- To maintain and potentially increase your personal wealth in the coming years, considering vocational training in finance, wealth-management, or similar fields could be beneficial, as it may provide opportunities for wealth growth and wealth management.
- As the wealth gap widens in Germany, community policy discussions could focus on equal access to vocational training programs, including finance and wealth-management, to help close the wealth disparity and offer more opportunities for wealth accumulation among a greater number of households.
