When are you rich? From this salary you belong to the richest 5 percent
When are you rich? Many people in Germany ask themselves these questions. This is also shown by the search queries on Google. The Institute of German Economics has published corresponding study results. The results surprise.
Wealth: Many people associate this term with swanky mansions, expensive cars and a lavish lifestyle. But the reality in Germany is different.
Because in most cases we underestimate our own role in society. So when are you rich? We often answer this question incorrectly, since rich people have a frowned upon reputation in society. As a result, many prefer to consider themselves part of the broad or upper-middle class.
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4,560 euros net: From this salary you belong to the richest five percent in Germany
The German Economic Institute (IW) in Cologne regularly examines the financial situation of Germans. The basis for this is the so-called Socio-Economic Panel (SOEP).
This is a representative long-term survey of 16,000 households. The questions include: How often have you changed your job in the last year? Or: How much money do you earn?
Since the survey meets the strictest scientific standards, the evaluation takes some time. Specifically, the latest figures come from 2018, which IW Cologne only published in 2021.
To be among the richest five percent in Germany, a single person needs a monthly net income of around 4,560 euros.
DINK(Y) and HIKO: These two groups are the richest in percentage terms
When analyzing the salary structure in Germany, two groups stand out in the richest ten, five and one percent, which are disproportionately represented.
These are the so-called DINK(Y)s – Double Income, No Kids (Yet) – and the so-called HIKOs – High Income, Kids Out. Both social groups are particularly common among the top earners and salary champions in Germany.
When are you rich? There is more than just the salary
Basically, when assessing whether a person or a household is considered rich, it is important that not only the salary counts in this calculation. There are other incomes as well.
This includes, for example, income from share transactions – i.e. dividend payments, among other things – or rental income. By the way: Anyone who lives in a paid-off house or apartment must also add the fictitious net rent to their own salary.
In an analysis of an earlier salary analysis, the Mirror the investigations of several researchers from the University of Hanover. As early as 2016, they found that “the respondents cannot even come close to determining their position on the income scale”.
This also shows that we cannot trust our self-assessment, especially when it comes to money and wealth. Many always want to portray themselves as poorer than they really are.
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