How rich am I? From this salary you belong to the richest 10 percent
How rich am I? Many people in Germany ask themselves these questions. This is shown not least by the search queries on Google. The Institute of German Economy has now presented the latest study results. The results surprise.
Wealth. Most people associate this term with swanky villas, expensive cars, large pools and a debauched life. In fact, the reality in Germany is different.
Because: In most cases we underestimate our own role in society. How rich am I? We often answer this question incorrectly because rich people have a frowned upon reputation in society. That’s why we prefer to count ourselves among the broad middle class.
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3,700 euros net: From this salary you belong to the richest ten percent in Germany
In fact, examine this German Economic Institute (IW) in Cologne regularly the financial situation of the Germans. The basis for this is the so-called Socio-Economic Panel (SOEP).
This is a representative long-term survey of 16,000 households in Germany. The interviewers ask people, for example: How often have you changed your job in the last year? Or: what 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 recently published.
To be among the richest ten percent in Germany, a single person needs a monthly net income of around 3,700 euros. For couples without children living in the same household, the value is enclosed 5,550 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.
How rich am I? There’s more than just 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. We always want to portray ourselves as poorer than we really are.
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