German workers struggle to save as wages lag behind living costs

A March 2026 Ipsos survey of 1,007 German households found that 27 % have no savings and 47 % cite low income as the main reason for their inability to set aside money. Average full‑time earnings in April 2025 were €4,784 gross, with about 20 % of full‑time workers classified as low‑earners. The study also highlighted the unequal distribution of wealth, with the richest 10 % of households holding roughly half of the country's €9.4 trillion in private monetary assets.

At the same time, the German government’s Wohngeld‑Plus reform, introduced in 2023, has doubled the number of households eligible for housing‑benefit support to roughly 1.2 million. Workers earning the statutory minimum wage of €13.90 per hour in 2026 can apply, but entitlement is calculated on the total household income, rent level and household size, and applicants must not receive other social benefits that already cover housing costs. Lower household incomes qualify for higher Wohngeld payments, offering some relief for those burdened by rising rent and living expenses.