Germans continue to rank among Europe’s most dedicated savers, putting aside almost one in every five euros of their gross income. Yet a large share of that money stays out of the capital markets, with only 28% of Germans saying they own shares.
Germany’s savings rate
The latest savings figures, recently released by the German Federal Statistical Office, show that Germany’s gross savings rate (gross savings divided by gross income) has fallen slightly to 18.9%, down from 19.6% in 2024.
It nonetheless remains above the European Union average of 14.3%.
How Europe compares
Across Europe, only the Swiss save more than the Germans. The gross savings rates reported are:
- Switzerland: 27.4% of gross income
- Germany: 18.9%
- EU average: 14.3%
- Italy: 10.8%
- United States: 10.7%
In Switzerland, people are far more used to funding their retirement from private resources. Italians, by contrast, prove more inclined to spend, with a savings rate similar to that of the United States.
None of these rates take into account depreciation of capital, such as the gradual loss of market value of assets like an owner-occupied home.
Record savings during the pandemic
Germany’s gross savings rate reached a record 22.9% in 2020, at the height of the pandemic. Many Germans had more money available at the time because they had to postpone holidays, and many venues for socialising and entertainment remained closed for long periods.
The net savings rate, calculated on actual disposable income, also remains high, holding steady between 10% and 11%. In practical terms, of every €100 that comes into a household, at least €10 goes straight into savings.
How savings are put to use
Many studies show, however, that savers in other countries make better use of their money. According to the report, this may be because they rely less on fixed-term deposits and similar lower-yield products and invest more in the stock market.
A recent survey by the German Savings Banks Association (DSGV) found that most Germans do not use the opportunities offered by the capital markets for a longer-term investment strategy:
- 75% consider saving “important” or “very important”
- 35% follow a specific investment plan
- 28% say they own shares
Reasons for hesitancy
The most common reason given, cited by 37%, is the feeling that they “cannot properly assess the risks” of investing in the stock market.
Government measures from January
In an effort to change this, the German government will, from January, subsidise investment accounts linked to exchange-traded funds (ETFs) or other share packages. The accounts will offer more options for retirement saving.
With information from DW and dpa
