Yesterday I visited a the website of Der Speigel, this news website has an active finance section, and it has come up with a Survey which allows you to check how rich or poor does your income make you in Germany. This is based on an annual survey conducted since 1984, with over 14000 households and 38000 participants.
The study has very interesting conclusions which can surprise you, the big takeaways for me were:
- Average net income (after taxes but including income from all sources) is around 1869 Euros/month.
- An individual (not household) income of 2805 to 4673 Euros/month puts you into an upper-middle class income bracket.
- If you earn more than 4673 Euros/month, boy you are rich!
This study is has a few surprises because people do not believe that they are upper middle class or even rich. In order to put more realistic calculations, the researchers have also weighted down incomes into a demand based adjustment, for example, if you are single an income of 3440/month puts you in top 10% while if you have a family with 2 kids, then you need 5160 Euros/month to belong to the same group.
While study only talks of incomes, and wealth distribution in demographic groups, and also mentions risks of poverty for these groups, it does not talk about saving habits and investing philosophy of the people or the presence of income outside of their primary occupation. It also fails to address Net Worth, and only looks at a monthly income as a measure how rich or poor one is, this completely misses on the debts/liabilities a household would have.
Do you agree with the findings of the report? Please share your opinion in the comments below.