Germany’s Growing Wealth Gap: Older Generations Far Outpace the Young
Wealth Accumulates with Age: The Generational Wealth Divide in Germany
A recent study based on data from the Deutsche Bundesbank reveals a stark disparity in net wealth across age groups in Germany. In 2023, the median net worth of German households stood at €103,100—a figure that offers a clearer picture than the average by excluding distortions caused by extreme wealth at the top. Notably, the wealthiest 10% of households reported a median net worth of €777,200, underscoring the deep concentration of assets among the affluent.
Age and Wealth: A Clear Correlation
One of the most striking patterns from the data is how closely wealth correlates with age. Households under the age of 35 held a median net worth of just €17,300, whereas those aged 55–64—the most financially secure group—had a median net worth of €241,100. The explanation is straightforward: wealth takes time to accumulate. Younger individuals are often at the start of their careers or managing student debt, leaving them with fewer assets. Interestingly, even households over 75 maintained substantial wealth, with a median net worth of €172,500, reflecting a strong capacity for asset preservation later in life.
Assets, Not Income, Are the Key to Wealth
The survey, which included responses from approximately 4,000 private households, measured net wealth—defined as total assets (including real estate, investments, vehicles, and business holdings) minus liabilities. One critical insight: homeownership is central to wealth accumulation. Fewer than 10% of Germans under 35 own property, compared to over 50% of those aged 55–64. This gap highlights both the financial barriers young people face and the compounding advantages of owning property over time.
Co-author Maximilian Stockhausen pointed out that if Germany aims to support private wealth-building, it should consider lowering taxes on earned income. Giving workers greater control over their disposable income would increase their capacity to save and invest.
A Prosperous Nation with Unequal Distribution
Despite solid growth among Germany’s middle class, the data illustrates a persistent intergenerational wealth gap. Older Germans are increasingly securing wealth through real estate ownership and long-term financial planning, while younger generations struggle to gain a foothold due to high housing costs and limited initial capital.
As Germany grapples with issues like intergenerational equity, housing affordability, and tax policy reform, this study sheds crucial light on how wealth is created—and who risks being left behind.
