Poverty in Germany: Who belongs to the vulnerable group?

A recently published analysis by the German Economic Institute (IW) offers important insights into the risk of poverty in Germany and defines the parameters that influence the lives of many people. According to the study, poverty is viewed not only as an economic situation in which people cannot earn their own living, but also as a subjective perception of a poor situation. The terms absolute and relative poverty are clearly differentiated from each other: While absolute poverty means low income that threatens existence, relative poverty refers to the standard of living in society.

In the European Union, a person is considered to be at risk of poverty if they receive less than 60% of the median income. Despite a strong social security system in Germany, combating poverty remains a challenge. The poverty limits for 2022 were set as follows:
– People living alone: ​​under 1,390 euros net/month.
– Single parents with a child under 14 years: 1,800 euros.
– Couple households with two children: 2,910 euros.

Statistical findings on the risk of poverty

The research, which is based on EU-SILC data from 2023 and analyzes income levels in 2022, shows that around 14.4% of the population has an income below the poverty line. Young adults aged 18 to 24 are particularly affected, with an at-risk-of-poverty rate of 24.6%, followed by single parents (23.7%) and those living alone (26.4%). The study also reveals that women are more affected than men (13.7%), with a risk of poverty of 15.1%.

In addition, employment status plays a central role in the risk of poverty: only 6.6% of those in employment are at risk of poverty, in contrast to 46.5% of the unemployed and 18.3% of pensioners. Interestingly, the subjective perception of poverty and wealth often differs from objective criteria. According to a 2023 survey, over half of respondents identified themselves as middle class, regardless of their actual income. The IW also distinguishes between different middle class categories: lower middle (60-80% of the median), narrow middle (80-150%) and upper middle (150-250%). It is found that only about 4% of the population crosses the upper class threshold, which means a net income of over 5,780 euros per month for singles.

For further information on living conditions and the risk of poverty in Germany, the Federal Statistical Office offers comprehensive data and analyzes that present the current situation in detail, as explained in more detail in relevant reports. The IW also provides relevant information on income levels in Germany, which helps to better understand the challenges associated with poverty and social inequality.