Average Net Worth by Age in Germany

Key Takeaways

• Median net wealth in Germany peaks at €256K for households whose main earner is aged 55 to 64. Households in this age group have had a full working life to save money and pay off their home loans.
• Households aged 25 to 34 hold a median net wealth of €19K. One main reason is that only 13% of these young households own a home.
• Median net wealth falls from €256K at ages 55 to 64 to €149K for households aged 75 and over. Because income falls around retirement age, households spend part of their savings on living costs.
• A paid-off home is usually a household’s most valuable asset in Germany. Homeowners without a mortgage hold a median net wealth of €450K.

Net Wealth of German Households by Age

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Median Net Wealth in Germany Shows the Typical Household Better Than the Average

Net wealth is the value of everything a household owns minus all of its debts. Many people call net wealth “net worth.”

Net wealth can be measured in two ways:

• Mean: the total wealth of all households divided by the number of households
• Median: the net wealth of the household in the middle. Half of all households have more net wealth, and half have less.

The typical German household holds a median net wealth of €103,200. By comparison, the mean net wealth in Germany is about three times higher.

Mean net wealth reaches €324,800 because wealth in Germany is spread very unevenly. If one billionaire moves into a small town, the town’s mean wealth jumps, but its median stays the same. That is why the median gives a better picture of what a typical German household owns.

To show average net wealth by age in Germany, households are grouped by the age of their main earner. The main earner is the household member with the highest income.

A household with a 60-year-old main earner counts in the 55 to 64 age group, even if younger family members live there too.

Median Net Wealth in Germany Climbs Between Ages 25–34 and 55–64

Households whose main earner is aged 25 to 34 hold a median net wealth of €19,100. Median net wealth nearly quadruples to €75,100 for households aged 35 to 44.

Homeownership is one main reason for this rise in median net wealth. The homeownership rate rises from 13% at ages 25 to 34 to 33% at ages 35 to 44.

For homeowners, a home is usually the most valuable thing they own. Homeowners aged 35 to 44 have a median home value of €363,200.

The €363,200 median home value is far higher than the €75,100 median net wealth for households aged 35 to 44. Two things explain this gap:

• Median net wealth covers all households. 67% of households aged 35 to 44 do not own their home.
• Homeowners subtract what they still owe on their mortgage from the home’s value.

About two in three homeowners aged 35 to 44 still repay a mortgage. As households repay the mortgage, the debt shrinks. A smaller debt means more of the home’s value counts as net wealth.

How Much Debt Do German Households Have? ->

Meanwhile, median net wealth doubles to €156,200 for households aged 45 to 54. Median net wealth then peaks at €255,900 for households aged 55 to 64. Three things push median net wealth to this peak:

• More households own a home. The homeownership rate reaches 55% at ages 55 to 64.
• Fewer homeowners still owe money on their home. Only about one in three homeowners aged 55 to 64 still repays a mortgage.
• Households have had more working years to save money.

Median Net Wealth in Germany Falls After Age 64 but Stays Above the National Median

Median net wealth drops from its peak of €255,900 to €149,400 for households aged 75 and over. The drop starts when households retire, and their income falls.

Median annual household income before taxes falls from €60,800 at ages 55 to 64 to €35,800 at ages 75 and over. With less income coming in, households use part of their savings to pay for living costs.

Households aged 75 and over still hold about €46,200 more in median net wealth than the €103,200 median for all German households. One main reason is paid-off homes. Nearly half of households aged 75 and over own their home, and almost all of these homeowners have fully paid it off.

Net wealth does not count state pension entitlements. These entitlements are the state pension payments a person has earned the right to receive, now or in the future.

Because employees in Germany must pay into the state pension, even households with few savings build up these entitlements. Wealth gaps between German households shrink once state pension entitlements are included.