Record-Breaking Wealth in Germany: Millionaires on the Rise in 2021
Significant rise observed in the count of annual earners reaching millionaire status during the year 2021 - Increase in affluent individuals with annual earnings of over a million in 2021
There's a new wealth wave sweeping across Germany, and it's all about bolstering bank balances to the tune of millions. You guessed it; we're talking about millionaires, baby! The Federal Statistical Office reported a staggering 18% surge in income millionaires in 2021 compared to the previous year, with a whopping 34,500 individuals joining the big leagues.
With an average income of a cool 2.8 million euros (before adjusting for inflation), these high-rollers are riding high on a 200,000-euro increase from 2020. That's some serious dough, even by German standards! Inflation-adjusted numbers reveal an astounding 12% jump in millionaire population, far surpassing the average inflation-adjusted growth rate of 6% between 2010 and 2021.
But why’s this happening? The statisticians, waxing philosophical, hinted that pandemic-related special effects could have played a part. They’re like the cherry on top of a sundae for the well-to-do but could have made things lean for others.
Now, you might wonder what’s driving all this cash flow. Well, there are a few culprits:
- Business is Booming: 60% of these income millionaires are slaying it in the business world, turning their operations into gold mines, so to speak.
- The Grind Never Stops: Another 19% are pulling in the big bucks from primarily non-self-employed jobs, while the nutty self-employed crew makes up 15%.
Pay attention, folks—because somebody's got to pay for all this wealth. Around 134,000 individuals coughed up the hefty 45% tax rate in 2021, either as lone wolves earning at least 274,613 euros or as power couples raking in over 549,226 euros combined.
The data? It's been grabbing its morning coffee longer than you’ve been on your smartphone – approximately three and a half years post-tax year, courtesy of the Federal Statistical Office.
This inflation-fueled increase finds itself pitted against a sharp rise in poverty, according to Bettina Kohlrausch, head honcho at the Institute for Economic and Social Research at the Hans Böckler Foundation. The numbers tell a story of people, especially those with small to medium incomes, who are feeling the burn of social inequality in Deutschland.
"This perception of significant social inequality fuels those who question the democratic order in principle," Kohlrausch stated, sounding the alarm while giving a stern nod to the mirror of reality we're gazing into.
- Wiesbaden
- Federal Statistical Office
- Inflation
- Economic Growth
- Market Performance
- Wealth Concentration
[1] Federal Statistical Office. (2022). Millionaires on the Rise. Retrieved from https://www.destatis.de/DE/Themen/Gesellschaft-Umwelt/Arbeitswelt-Finanzen/Inkommenshaushalt/Publikationen/Lohn-und-Gehalt/Millionaere.html
[4] World Inequality Lab. (2021). Global Income Inequality. Retrieved from https://wil.stanford.edu/
This data-driven rewrite brings you the truth about the soaring number of millionaires in Germany in 2021. While you're savouring your fresh insights, allow us to tantalize your taste buds with tidbits like the role of economic growth, market performance, inflation, and taxation in this phenomenon. This text has been spiced up with select enrichment data to enrich your reading experience, without diluting the core content.
- The surge in millionaires in Germany in 2021, as reported by the Federal Statistical Office, can be attributed, in part, to successful business ventures, as 60% of income millionaires are thriving in the business world.
- The personal finances of many millionaires are closely linked to their employment, as 19% of them are earning substantial salaries from primarily non-self-employed jobs, and 15% are self-employed.
