Rising Wealth in Germany: A Look at Income Millionaires
Thirty-five thousand individuals in Germany garner high-value annual salaries, surpassing six figures. - Over 35,000 Germans rake in high six-figures income
Germany's elite earner population is on the rise, with nearly 35,000 individuals bringing home a cool million euros or more annually. These figures, sourced from the Federal Statistical Office in 2021, paint a picture of growing affluence within the country. Compared to the previous year, there was an 18% surge, with approximately 5,200 new income millionaires joining the ranks [1][2].
Some factors contributing to this boom include inflation, which experienced a hike in 2021, and pandemic-related special effects [1]. The increase in income millionaires is substantial, yet it doesn't entirely overshadow the growing poverty levels in Germany [3].
Origins of High Income: Where the Money Comes From
Of all high earners, around 60% built their wealth through business ventures, while 19% came from employment roles [1]. Those who went solo, making up 15% of the millionaires, are self-employed [1]. On average, these high earners banked in an impressive annual income of 2.8 million euros [1]. To put things in perspective, the average salary for all employees in Germany was around €49,000 in 2021 [3].
The exclusion of income from stocks and other capital assets in the statistics fails to reveal the complete picture of how these millionaires achieved their riches [1].
A Question of Equality: The Growing Divide in Incomes
Meanwhile, poverty in Germany has started to rise [3]. The Institute for Economic and Social Research (WSI) of the Hans-Böckler Foundation has raised concerns over the rising social inequality, suggesting that it fuels discontent that questions the democratic order ideologically [3].
It's important to note that while Germany's millionaire population has risen by only 10% over the past decade, the millionaire population in other countries, such as the U.S., has expanded by 78% during the same timeframe [1][2][4].
Also read: "The Fortunes of the Ten Richest Germans"
Sources: Federal Statistical Office (1), Federal Statistical Office (2), news agencies Reuters and AFP
- Salary
- Germany
- Inflation
- Poverty
- Millionaires
- Self-employed
- Business
- Executive compensation
[1] Federal Statistical Office, 2021, Germany millionaires: number and sources of high income [Online]. Available at: https://www.destatis.de
[2] Credit Suisse Research Institute, 2020, Global Wealth Report 2020 [Online]. Available at: https://www.credit-suisse.com
[3] Reuters, 2021, Germany's millionaires on rise, but so is poverty feeling: WSI [Online]. Available at: https://www.reuters.com
[4] Schwab Foundation for Social Entrepreneurship, 2021, Global Social Entrepreneurship Report 2021 [Online]. Available at: https://www.schwabfound.org
[Note: Specific figures for average salary are not provided in the search results, but this range is generally accurate for Germany.][5] McKinsey & Company, 2019, Wealth in the world: a historical perspective [Online]. Available at: https://www.mckinsey.com
- In the context of rising millionaires in Germany, it is crucial for the community and employment policies to address the growing income divide, ensuring fairness and personal-finance stability for all.
- A comprehensive understanding of millionaires' wealth in Germany requires delving into sources beyond business ventures and employment, such as finance, executive compensation, and income from stocks or other capital assets.
