Many Germans misjudge their financial status, believing that wealth is only reserved for those earning €9,000 per month with luxury cars and mansions. However, statistics suggest otherwise.

Misconceptions about wealth in Germany

For many, financial prosperity is associated with large houses, expensive vacations, and high-end cars. But do you really need a six-figure bank balance to be considered “rich” in Germany? Surprisingly, many self-identifying middle-class individuals actually fall into the wealthy category based on economic statistics.

Why do Germans underestimate their own wealth?

Research suggests that this misperception is common.

“The strong tendency toward the middle class is likely due to the fact that people primarily compare themselves with their immediate social networks,” explains Marius Busemeyer, a professor of Political Science at the University of Konstanz, in an interview with BuzzFeed News Germany.

This leads to both poor and wealthy individuals misjudging their financial position:

• Those with lower incomes tend to underestimate their relative poverty.
• Those with higher incomes fail to recognize how financially well-off they actually are.

What income level qualifies as “rich” in Germany?

According to the German government’s Poverty and Wealth Report, a person is considered high-income if they earn twice the median income.

The median net income in Germany is currently €1,947 per month.
A person is considered financially well-off if they earn at least €3,900 per month after taxes.

Wealth isn’t just about income – assets matter too

While income is an important factor, true wealth is more accurately measured by total assets.

A study by the Bundesbank found stark differences in net worth across German households:

• The poorest 20% own less than €6,900 in total assets.
• The richest 10% have a net worth of at least €725,900.
• The median net worth across Germany is €110,022.

Regional differences shape perceptions of wealth

Political scientist Marius Busemeyer explains that regional disparities and economic structures play a key role in how Germans perceive inequality.

“People tend to have a clearer understanding of poverty than of wealth,” he notes.

One possible reason is that individuals can relate more easily to poverty—either from personal experience or through friends and acquaintances who have faced financial struggles. In contrast, wealth feels more abstract and less tangible to many people.

Ultimately, wealth in Germany is not just about salary, but a combination of income, assets, and regional economic conditions—factors that many people may overlook when assessing their financial status.