Earnings are changing: This is how much 20 to 40 year olds should earn!

Earnings are changing: This is how much 20 to 40 year olds should earn!

How much you earn is a topic that is often left silent in Germany. But young people in particular are often faced with the question of how they compare to their peers. And this is also important: What can you expect when you enter the professional world? The Mainpost reports that current statistics about average salaries in Germany provide an insightful overview.

At the age of 20, you are often still in training or studying. The average annual income in this age group is around 15,400 euros, which corresponds to around 1,300 euros per month. A little tip: According to Green's formula, 20-year-olds should have saved around a quarter of this amount, around 3,850 euros. Anyone who has already invested in savings has laid a good foundation.

Career entry and middle-class income

As we enter the third decade of life, things get serious. Many start their careers here and then earn an average of around 41,800 euros annually or 3,500 euros per month. Here, too, there is some advice from Green's formula: at least one year's salary should be available as savings. Anyone who can do this can rely on a good financial basis.

At the age of 40, when you have generally already gained a lot of professional experience, you can expect an average income of 57,200 euros, which amounts to around 4,800 euros per month. The following applies to this phase of life: Green's formula recommends having saved over 150,000 euros - that's three times your annual income. That sounds like a decent cushion, right?

Collective wages and labor costs at a glance

An interesting aspect the German Bundesbank The development of wages and salaries in Germany is documented in their collective wage statistics. These statistics are based on around 500 collective agreements covering around 20 million employees. That is almost half of all workers, employees, collective bargaining employees and civil servants in this country. This data is of great importance for a better understanding of the wage and salary market in Germany.

The survey not only takes into account the basic salaries regulated by collective agreements, but also one-off payments and additional agreements, such as holiday pay or Christmas bonuses. This allows a comprehensive overview of the entire remuneration. In the context of the overall economic situation, such information is particularly important as it also reflects inflationary pressure on the wage side. This is a signal for the location and competition comparison in Europe.

The entire development of wages and labor costs has a direct impact on people's quality of life and financial planning. This information is worth its weight in gold, especially for young people who are about to start their careers. You have the feeling that you are well advised to take care of your finances early on and develop your skills.