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Wealth in Germany: Sizing the Market Opportunity

Wealth in Germany: Sizing the Market Opportunity

Summary

Wealth in Germany: Sizing the Market Opportunity analyzes Germany's wealth and retail savings and investments markets, with a particular focus on the HNW segment. Analysis is based upon our 2014 Global Wealth Managers Survey, our Global Wealth Markets Analytics, and our Global Retail Investments Analytics.

Synopsis

  • Size your potential client base using our proprietary data, presenting the number of affluent individuals by liquid asset band to 2019.
  • Understand the drivers behind the growth of the affluent market, such as the wider macroeconomic environment and investment preferences.
  • Quantify HNW asset allocations into non-liquid assets such as property. Find out how much of their investible assets are held offshore.
  • Export the graphics from the dashboard, or if you are more at ease using Excel, export the data into your own worksheets.
Reasons To Buy
  • How large is the HNW market in Germany?
  • What is the penetration of affluent individuals in Germany?
  • What is the current and future mix of asset class balances in Germany?
  • How much of their wealth do German HNW individuals invest offshore?
  • Which booking centers are used by HNW individuals to invest offshore?
Key Highlights

In Germany, affluent individuals account for 19.8% of the population but hold over 73.4% of total German retail liquid assets.

With the exception of bonds, we forecast growth across all major retail savings and investment products. Demand for deposits remains unbroken, and we forecast continued annual growth of 3.5% until 2019. The strongest growth rates, however, are expected for equities and mutual funds.

German HNW individuals tend to hold the majority of their assets in traditional liquid assets such as deposits and mutual funds, but wealth managers must also take into account that 20% of German HNW assets are allocated to less liquid alternative and property investments.


  • Sizing and Forecasting the German Wealth Market
    • 225,100 of the 13.2 million affluent individuals in Germany are HNW
      • Affluent individuals accounted for 19.8% of the total adult population in 2014
    • HNW individuals account for 0.34% of the population but hold 21.6% of total liquid assets in Germany
      • German affluent individuals held $2.8tn in liquid assets in 2014
  • Drivers for Growth in the German Wealth Market
    • Germany's retail savings and investment market performed strongly in 2014
      • A strong bias towards deposits limits retail savings and investment growth
    • The German economy is showing signs of growth, supporting wealth creation
      • The export market recorded a record high in 2014, and low unemployment is driving domestic consumption
      • Germany's stock market has performed strongly since 2012
  • HNW Investment Preferences
    • HNW individuals allocate 20% of their investible assets outside traditional investments
      • Property investment is set to increase over the next two years
    • Only a small proportion of HNW individuals' wealth is invested offshore
      • The availability of better investment options is the biggest driver of offshore investment in Germany
        • Table German personal income tax rates for a single person, 2015
        • Table German inheritance tax rates (%), 2015
        • Table Inheritance tax allowances, 2015
      • Switzerland and Luxembourg are the preferred offshore booking centers
  • Appendix
    • Abbreviations and acronyms
    • Supplementary data
      • Table Total German adult population by asset band (000s), 2009-13
      • Table Total German adult population by asset band (000s), 2014e-18f
      • Table Germany: onshore liquid assets by asset band ($bn), 2009-13
      • Table Germany: onshore liquid assets by asset band ($bn), 2014e-18f
    • Definitions
      • Affluent
      • Domicile
      • DTA
      • HNW
      • Liquid assets
      • Mass affluent
      • Onshore
      • Residency
      • TIEAs
    • Methodology
      • Verdict Financial's 2014 Global Wealth Managers Survey
      • Verdict Financial's 2013 Global Wealth Managers Survey
      • Global Wealth Model methodology
      • Global Retail Investments Analytics methodology
        • Table Euro-US dollar exchange rate, December 31, 2012 and December 31, 2014
    • Bibliography
    • Further reading

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