31.9 percent of people live in households that were unable to cover extraordinary expenses of 1150 euros or more from their own funds in 2021.
Even before the start of the current energy crisis, almost a third of Germans were unable to cope with major, unexpected expenses, as shown by new figures from the Federal Statistical Office: Last year, 31.9 percent lived in households that were unable to cope with extraordinary expenses 1150 euros or more to be covered from your own funds. In France and the Netherlands, this proportion was much lower at 27.6 percent and 15.1 percent. In Romania, Croatia, Greece, Cyprus and Latvia, on the other hand, more than 40 percent each did not have sufficient financial reserves for unplanned expenses.
In 2021, a fifth of the population in Germany only had a so-called net equivalent income of less than 16,300 euros per year. The equivalent income is a per capita income adjusted for savings effects in multi-person households. Two-fifths came under 22,000 euros, another two-fifths had 28,400 euros and more. An above-average number of single parents are among the 40 percent of the population with the lowest incomes: almost two-thirds of them had a net equivalent income of less than 22,000 euros a year in 2021. Around half of the retired people had to make do with less than 22,000 euros. Among the unemployed and other inactive persons, 77.1 percent had less than 22,000 euros and 58.3 percent less than 16,300 euros net equivalent income. Last year, 3.7 percent of people lived in households that defaulted on bills from electricity or gas providers, for example.
The WSI Institute of the Hans Böckler Foundation, which is close to the trade union, explained that large parts of the population had to make do with little income. This also makes it clear once again how important the introduction and recent increase in the minimum wage to twelve euros are, said Bettina Kohlrausch, scientific director of the WSI. “It remains to be seen whether the relief packages that have been decided are sufficient to comprehensively relieve people of financial worries and burdens.” With its third relief package, the federal government wants to mitigate the consequences of the Ukraine war for companies and consumers.